Mortgage Glossary
Net Tangible Benefit
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Net tangible benefit is the requirement that a refinance, especially a streamline, must meaningfully help the borrower.
What Net Tangible Benefit means
Acceptable benefits include a lower rate, lower payment, shorter term, or moving from an ARM to a fixed rate. The rule prevents churning loans for fees alone.
Florida example
A Florida FHA Streamline must show a net tangible benefit, such as cutting the rate by a set amount. Without a real benefit to the borrower, the refinance isn't allowed.
Related program: Learn more →
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.