Estimate your home's current value and your home equity

• 1
  Local real estate professionals can assist with establishing your home's present value.Jupiterimages/Comstock/Getty Images
  
  Obtain a current estimate of home value from a local real estate agent or broker. Home equity is the difference between how much you owe on mortgage loans against your home and how much your home is worth. Estimate home equity by subtracting the amount of your mortgage loan from your home's current value. Don't assume that your home is worth the same as it was when you bought it or last refinanced.
  
  
• 2
  Your loan-to-value ratio helps with determining your mortgage loan options for refinancing.Jupiterimages/Comstock/Getty Images
  
  Conventional mortgage lenders typically require a maximum loan-to-value ratio of 80 percent. Estimate your current loan-to-value ratio by dividing your current mortgage amount by your home's current value. If your ratio is higher than 80 percent, you'll refinance using another FHA home loan program.
  
  
• 3
  Comparing mortgage refinancing quotes assists with finding your best refinancing option.Jupiterimages/Photos.com/Getty Images
  
  Shop and compare mortgage refinancing quotes based on the loan amount you need and the annual percentage rate (APR) shown for each quote. The APR includes the mortgage interest rate, and many of the lender costs associated with getting a new mortgage. The APR more accurately estimates the entire cost of a mortgage than mortgage rates alone.
  
  
• 4
  Contact mortgage lenders with questions.Jupiterimages/Comstock/Getty Images
  
  Consider refinancing your existing FHA loan through the FHA streamline refinance program. In order to qualify, your mortgage payments must be current, and you cannot refinance for additional cash out. The FHA streamline refinance option allows for adding closing costs to your new mortgage amount if you have enough home equity. You can refinance up to 97.5 percent of your home's current value using the streamline refinance program. Contact your mortgage lender or any FHA-approved lender for determining if a streamline refinance can work for you.
  
  
• 5
  Your comfort and confidence are important factors in selecting a mortgage lender.Jupiterimages/Comstock/Getty Images
  
  Select two or three mortgage quotes, and make notes of questions and concerns. Contact mortgage lenders to learn more about loans you're considering. Make sure you understand the features, costs and repayment terms for each refinance mortgage you're considering. Move on to another lender if your questions are not answered to your satisfaction.
  
  
• 6). Select your mortgage lender. If you are refinancing to another FHA loan, verify that the lender you select is an FHA-approved lender. Finding the refinance mortgage you want is important, but your comfort with and confidence in your mortgage lender or broker is also important. Your mortgage lender will coordinate approving your refinance mortgage, paying off your existing mortgage, and ensuring that all legal and lending requirements are met for successfully refinancing your FHA 203k mortgage.