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  1. #1
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    FHA streamline refinance

    Anyone done this, and any idea on closing costs? I know I'm slow to the show, but situation on moving has changed so now interested.



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    Re: FHA streamline refinance

    It really depends form company to company. Some do a no charge refi where they give you a higher rate than market, some do it based on the loan amount, and others choose flat-fee.



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    Re: FHA streamline refinance

    You have a couple different options for a streamline:

    There is a FHA Streamline with an appraisal - this one you can roll your closing costs into the loan, or you can do an FHA Streamline without an appraisal, which requires you to bring cash to the closing table. If you can do the streamline without the appraisal I would recommend it simply because you don't have to have your house appraised.

    Closing costs vary from lender to lender, but you will have a charge on all FHA loans for an Up Front Mortgage Insurance Premium (UFMIP) - this is standard on all FHA loans. This amount depends on the amount of the loan, they lower the loan amount, the lower the UFMIP, and the higher the loan amount, the more it will cost you. Depending on when you did your first FHA loan, you may have a refund from the UFMIP you paid on that loan. This unused portion would be credited back to you as a reduction on the new UFMIP. This will be part of your closing costs. Your closing costs vary from state to state, and don't forget you have to take into consideration for escrows (taxes and insurance) as part of your closing costs.

    With most lenders, you will have the upfront charge of an application deposit - amount varies from lender to lender, and that should be it.

    I would tell you to contact your current lender and discuss this with them. It is easier to do a streamline with your current lender than switching lenders because your current lender can move it through must quicker.

    Streamlines are a pretty easy to originate and process, and they are my favorite type of loan to work with.

    PM me if you have any other questions.



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    Re: FHA streamline refinance

    We worked with our current lender (last week) and were shown no closing costs, not rolled into the loan or cash. We opted for the no appraisal route as the other option was having to play closing costs to get a lower rate that only worked out to $25 less a month on our loan, and closing costs would have been ~$2500.


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    Re: FHA streamline refinance

    Quote Originally Posted by simply1 View Post
    Anyone done this, and any idea on closing costs? I know I'm slow to the show, but situation on moving has changed so now interested.
    I asked several mortgage places what their current rates were, and they all gave me less-than-impressive rates and closing costs. Then I told one of them "I want this rate with zero closing costs (not financed)", and she said "okay, no problem". I am financing the UFMIP though.

    Just shop around and try to leverage your offers. Who is your current mortgage with? I agree that there are benefits to sticking with the same company.



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    Re: FHA streamline refinance

    I'm with wells Fargo now, the appraisal is new the last couple of months I guess eh?



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    Re: FHA streamline refinance

    Quote Originally Posted by simply1 View Post
    I'm with wells Fargo now, the appraisal is new the last couple of months I guess eh?
    You only need an appraisal if you want to roll closing costs (other than UFMIP) into the new loan. Otherwise, no appraisal needed.

    Wells Fargo offers a streamlined refinance process to existing customers (no closing costs), not sure if it applies to FHA as well:
    https://www.wellsfargo.com/mortgage/...iptions/online



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    Re: FHA streamline refinance

    The standard closing costs that I have seen have been $1700 (includes appraisal), not including UFMIP or escrows (if their are escrows). The rates I've been quoted are 4.5% fixed for 30 and 15 year (she told me that all I needed for this rate was a 620 credit score). If you would like I can connect you with the lender helping me. Just let me know.



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    Re: FHA streamline refinance

    Quote Originally Posted by Sy4Cy View Post
    The standard closing costs that I have seen have been $1700 (includes appraisal), not including UFMIP or escrows (if their are escrows). The rates I've been quoted are 4.5% fixed for 30 and 15 year (she told me that all I needed for this rate was a 620 credit score). If you would like I can connect you with the lender helping me. Just let me know.
    Wow, I had contacted a place from a mailing and they wanted 5k for closing! I wouldn't do business that way but I was put off by that number.



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    Re: FHA streamline refinance

    Quote Originally Posted by MrGreg View Post
    You only need an appraisal if you want to roll closing costs (other than UFMIP) into the new loan. Otherwise, no appraisal needed.

    Wells Fargo offers a streamlined refinance process to existing customers (no closing costs), not sure if it applies to FHA as well:
    https://www.wellsfargo.com/mortgage/...iptions/online
    Huh, wouldn't let me do the online process so I'll talk to them to see what options are available



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    Re: FHA streamline refinance

    Quote Originally Posted by Sy4Cy View Post
    The standard closing costs that I have seen have been $1700 (includes appraisal), not including UFMIP or escrows (if their are escrows). The rates I've been quoted are 4.5% fixed for 30 and 15 year (she told me that all I needed for this rate was a 620 credit score). If you would like I can connect you with the lender helping me. Just let me know.
    Holy cow, did we go on the wrong day, we ended up with 5.6% on a 30 and our credit score was well above 700. The good part about the program is that we can continue to refi under the same program, according to BofA. She said people have been doing it for every 1/8 point it goes down.


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    Re: FHA streamline refinance

    I'm thinking about doing an FHA streamline refinance today at 5.25% with no closing costs (aside from UFMIP). Decent??


    Last edited by MrGreg; 01-22-2010 at 11:30 AM.

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    Re: FHA streamline refinance

    Is the loan officer paying the closing costs for you?? is that why the rate is so high??
    My loan officer offered me a fixed rate of 4.5% 30 year FHA, and I pay closing costs. She also offered a rate of 5%, and she would pay the closing costs for me.
    I didn't think that this was a good option because I would pay more in interest over the life of the loan. I ended up taking the 4.5%. Something to consider.
    A rate of 5.25 seems high to me. let me know if you would like the contact information for the loan officer who helps me, and she can give you information. I am sure she would be willing to talk about it even if you don't end up going with her.



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    Re: FHA streamline refinance

    The loan officer / mortgage company is giving what is know as premium pricing for those who are having their closing costs paid by the lender. The borrower takes a higher interest rate, and the lender gives them a credit in their points to help cover closing costs. So instead of paying money to buy down the rate, the lender is giving you money to take a higher rate. An example would be on a $100k loan, point of -1% would equal a credit of $1000 to the borrower. This is very common on FHA transactions to help borrowers lower their closing costs.

    It is important to remember on FHA streamlines refinances there must be a tangible benefit to the borrower - either a lower payment - typically tied to a lower interest rate, or a shorter term - going from 30 yrs to 15 yrs. If there is no benefit to the borrower, FHA won't allow the transaction.

    There are several changes that recently took place with FHA loans, as they begin to tighten up their lending criteria. A good mortgage professional can explain them to you in simple terms. If I could recommend anything, it would be to really examine the fees you are charged by the lender. There were new changes effective 1/1/10 that really brought these in line and eliminated lenders loading up loans with a bunch a junk fees. Take the time to review your Good Faith Estimate from the lender and see what the costs to do the loan is, especially look at the origination charges, and title fees. Since a lot of the junk fees have been eliminated, so lenders are lumping them in as an origination charge. You can have three lenders pull your credit while shopping for a loan before your credit takes a hit.



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    Re: FHA streamline refinance

    Yep, it's no points or fees or closing costs aside from the UFMIP, plus a little extra credit going towards escrows. I could pony up for a better rate, but want to keep that cash on hand. I wasn't even really considering refinancing, but figured I'd may as well think about it if it's not going to cost me anything.

    After shopping around for awhile, 5.25% seems pretty good. All of the other lenders had higher rates or costs. I haven't really checked into smaller banks, mostly the bigger ones and some credit unions, and amerisave.com for fun.

    I'll have to keep checking, the rates you (Sy4Cy) got sound pretty great.


    Last edited by MrGreg; 01-23-2010 at 12:58 AM.

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