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FHA Streamline - CA

My current FHA loan which originated around 2002 at 5.25 APR, i would like to REFI with the FHA Streamline because I think that's my best if not my only option because I have a 2nd and combined they exceed the value of my home. I'm being offered a 3.75% interest rate and 4.29 APR, does this sound right it seems like a big difference between the two rates?  I'm told because the lender is paying the closing costs, I'm paying a higher interest rate. Does this sound like a good offer or should I keep looking? If I were to pay $1700 in closing costs the interest rate would be 3.49% not sure what the APR would be.  I plan on selling in the next 2 - 3 years... so I don't want any or very little upfront costs if possible.  I have good credit...Thanks in advance!!
  • June 26 2012 - US
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Answers (1)

The APR is higher because it includes the 5 years of monthly MI that you will have to lay if you Streamline. For the rate you are offered you should be able to get ALL closing fees paid and get a credit to fund your new impound account, which in effect is money you earn for refinancing. (the size of your loan will be a factor here as well). If you would like a competing estimate you can contact me through my profile.
  • June 26 2012
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