Profile picture for timasmith

FHA Streamline 3.875?

current loan has balance of 331,000 at 5.125% closed may 2010.
current principle/interest plus mip is $2020.

Lender offered me 3.875 which will cover upfront mip, all closing costs, and a credit of about $2,000 towards escrows. i would need to show up with $2800 to closing.

I feel like this is a little high on the rate have nothing to compare it to. Anyone have a similar experience in NJ?

  • October 14 2012 - US
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Answers (4)

If the 3.25 pays all cost INCLUDING the 1.75% UFMIP fee then you have a good offer. Yes it usually makes sense to do the streamline if you pass the net tangible benefit test. It is unfortunate that the monthly MI will increase sharply however when you consider it will be eventually removed entirely the long term benefits are considerable while the short term benefits are also immediate.
  • October 18 2012
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Profile picture for user86818010
My current loan balance is $355,000 at 4.75% closed in Oct 2010. Current principle/interest plus mip is $2112. 

This loan company is offering to pay all closing costs and my new loan info would be 3.25 and a principle/interest + mip of $1885.

Is this a no brainer?  I understand that with the new law the mip is no longer tax deductible. 
mip is going from $159 to $352 but will be saving $227/mo
  • October 17 2012
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Agree that rate is too high. You might also want to structure a lower base loan amount, finance the UFMIP and reduce both your cash to close and rate obtained.
  • October 14 2012
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Profile picture for Mortgage Brothers
Your assumption is correct.  Should be able to do 3.5% at that loan size and have the lender pay the UFMIP, closing costs, and a credit toward your escrows.  Call around to another couple of highly rated lenders on Zillow and you will be offered a better rate. 
  • October 14 2012
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