FHA Streamline - Is this a good deal?My wife and I are looking to refinance our home to lower our monthly payment. We want to keep closing costs as minimal as possible.We purchased our house in October of 2008 for ~$139,000. We currently owe about $128,000 on the home and the value is hovering right around the purchase price (property taxes are just under the purchase price, but the lender I spoke with mentioned that comparable in our area have sold recently for $140-145, so I believe we're somewhere between the property tax and the comps).Our current interest rate is 5.875%.The lender I spoke with was very nice, but I'm not sure the deal they offered was very good and wanted to get some opinions on here -She recommended the FHA streamline and was able to offer the following:Rate: 3.750%Total Closing: 3337.40Prepaids required: $4877.71Escrow Advance: $2800 (what we have left in escrow for the year)Lender Paid Closing: $2500Unfortunately, this leaves us at just under $3K in out of pocket closing - I'm hoping to be under $1,000 if possible (which I thought would be).From reading some on here, it seems like $2500 from the lender is pretty low for an interest rate of 3.75, but I could be wrong.I believe our house would be valued high enough for us to roll in closing costs, but would rather not take the risk of paying for an inspection and still having to bring money to close if I were wrong.Any thoughts? Are those numbers good or am I correct in that they're high?Should I be able to come to closing with an FHA streamlined loan and NOT have to bring more than $1,000 or is that too optimistic given the low amount in my escrow account?My wife and I have excellent credit.October 10 2012 - US0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.