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Does it make sense to do a streamline FHA refi right now?

Original loan info:
Origination date- Oct '09
FHA 30-yr fixed
Original Principal Balance- 345,600
Interest Rate- 5.0%
Current Principal Balance- 340,900
Monthly Payment Breakdown- 1,855 P&I, 430 Escrow = 2290 total monthly
Washington, DC   Excellent Credit, House appraises about 365k

Objectives- lower monthly payment, no increase to principal, and no up-front costs

Is it possible to achieve these objectives with current rates if I were to do a streamline FHA refi?
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October 13 2010 - Washington
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Answers (3)

Best Answer
No.  With HUD's recent change increasing the monthly mortgage insurance premium, it will not make any sense given your current rate.
If you can pay down the mortgage to get into a 90% conventional, the private mortgage insurance premium will be less along with still lower conventional rates, your total payment will be lower than with a FHA streamline. 
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November 21 2010
No. You will not get the minimum 5% PITI benefit with the new MIP charges. Bob is correct in holding on until you can get a conventional loan.
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November 22 2010
This is a question that a mortgage lender can help you answer.
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November 21 2010
 
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