When should you get an FHA streamline loan?

You should seek an FHA streamline loan if you have an FHA-insured loan and need to refinance to lower monthly payments. The FHA does not permit refinancing for the sole purpose of paying off your loan sooner. This would result in higher monthly payments. The FHA does permit refinancing to longer terms or lower interest rates, however, in order to make your monthly payments more affordable. If you have an FHA loan and need to reduce your payments due to a change in your ability to pay, it is beneficial to go straight through the FHA's streamlined program in order to secure the least expensive options and easiest processes available to you.