Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for user5179547

FHA Streamline Refinance Question

Hi.  We have an FHA loan on our home, originally made in July, 2000.  Our interest rate is 7.15%.  Our home is worth about $91000, and we owe approximately $68500.  We have never been late on a payment.  Our existing lender does not offer any sort of refinancing, streamline or otherwise.  I have been talking with a representative from Freedom Mortgage about refinancing, and their offer seems ok.  They can 3.875%, and our payment would drop around $85 per month.  I would rather refinance with a bank, but can't find one willing to do a streamline refinance unless they hold the original loan.  Does anyone have any information about Freedom Mortgage or any advise about other companies I can contact for information?  Thanks in advane.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 14 2012 - Robertsdale
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

The appeal of the FHA Streamline is the no appraisal requirement. Freedom Mortgage actually pays the closing costs (almost $1400) on our behalf.  
========================
The same can be done (lender paid closing costs) on a conventional loan and there a plenty of banks that will do either loan for you even though you're not being serviced by them now).

That they haven't already told you of the further benefits of taking 15 years vs 17 years is criminal; I'd walk away on that alone.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 16 2012
You are correct, any term longer than 15 years will require annual MI
( you pay it monthly ) for a minimum of 5 years.Ask them for a 15 Year quote with a lower interest rate and no annual MI. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 16 2012
Profile picture for user5179547
Thank you for all of your replies.  The quote we were given was for a 17 year loan.  We absolutely don't want to extend the life of the loan any longer than what we currently owe.  Yes, the payment amount included mortgage insurance.  The paperwork I received from Freedom Mortgage shows that our P&I would be $464.28, and our mortgage insurance payment would be $31.15. 

I am not sure we would really be able to do a conventional loan due to the out of pocket costs. The appeal of the FHA Streamline is the no appraisal requirement. Freedom Mortgage actually pays the closing costs (almost $1400) on our behalf. 

After doing some additional research, I am a bit confused about the mortgage insurance requirement.  I understand that it is required to be paid for 60 months.  However, I read on one site that it was not required for loans made for 15 or fewer years.  I am not sure if this is correct, but if so, it may be to our benefit to refinance for 15 years, rather than 17.  Any thoughts?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 16 2012
An streamline FHA would not be your best option unless qualifying for a new loan is an issue. Based on value vs loan balance, you have 20 % equity and could avoid paying .55 mortgage insurance monthly for another 5 yrs min. as required on an FHA streamline refinance. Also, your savings will be about $175 a month with out MI so not sure why only $85 a month savings was mentioned.. If that is a 15 yr quote at 3.875%, you can do better.
If you want a better option to consider, do a 15 yr conventional loan in the 3% range and payment would be same or slightly lower than current payment. You would have about $300 monthly equity vs $125 or so currently, and knock 15 yrs off the loan term vs new 30 yr loan.........
Post a request on Zillow above left Mortgage Rates and you should get multiple quotes to consider.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 15 2012
There are a great many mortgage banks who will offer streamline refinance. If you feel uncertain of what you have found so far, get other Good Faith Estimates and compare. The program will be the same regardless of where you obtain it, just focus on getting terms you will be satisfied with.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 15 2012
 
Related Questions
If I do a streamline FHA refinance on my current loan, does my 5 year MI requirement start over?
Profile picture for 800lbs In The Room
Latest answer by 800lbs In The Room
August 19 2013 | 5 answers
  • Asked by user7956099
  • In Refinance
  • August 14 2013
FHA Streamline Refinance Question
Profile picture for Norm  D Plume
Latest answer by Norm D Plume
December 16 2012 | 5 answers
  • Asked by user5179547
  • In Refinance
  • December 14 2012
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 301 W Broadway St, Summerdale, AL Home For Sale
    301 W Broadway St, Summerdale, AL 36580

     For Sale: $31,500

    • Beds: 3
    • Sqft: 1037
    • Baths: 1.0
    • Lot: 13800
  2. 301 E Broadway St, Summerdale, AL Home For Sale
    301 E Broadway St, Summerdale, AL 36580

     For Sale: $31,500

    • Beds: 3
    • Sqft: 1037
    • Baths: 1.0
    • Lot: 15700
  3. 21613 College Ave, Robertsdale, AL Home For Sale
    21613 College Ave, Robertsdale, AL 36567

     For Sale: $119,900

    • Beds: 3
    • Sqft: 1428
    • Baths: 2.0
    • Lot: 9600