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FHA Streamline Refinance from 30 to 15 Year Fixed

I just learned about the new fee reductions on FHA streamline, and I would like to take advantage. However, I also want to move from a 30 year fixed to a 15 year fixed mortgage. Is this possible? I am getting conflicting answers depending on where I look. Some places say no because the payment will not be decreasing, some say yes as long as I get an appraisal.

Anybody know?
  • May 25 2012 - Beaverton
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Answers (6)

You have to lower the P & I plus MI portion of your payment by 5% to qualify for a streamline, same as the guideline for a 30 Yr to 30 Yr. You can do a rate & term refinance if you have at least 2.25% equity and qualify for the payment. 
  • May 25 2012
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How much equity do you have?  I'm a local lender and you are more than welcome to call or email if you have specific questions. 
  • May 25 2012
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No, you can't do a streamline refinance from a 30 year to a 15 year.  You can however do a standard FHA refinance & switch terms!
  • May 25 2012
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A change in term alone does not qualify as a net tangible benefit. Clay is right your payment has to better by 5% or refinance from an ARM into a fixed rate loan. 
  • June 21 2012
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The current requirement for a streamline refinance requires you save at least 5% of the monthly payment including mortgage insurance so switching from a 30yr to a 15 is usually not an option. If you have at least 2.25% equity in the home you can do a regular rate and term refinance. This will also require verification of income and assets as well as an appraisal but it should help you get the program you want. As an alternative consider the 30 year fixed loan and simply find out what the 15 yr payment would be and simply pre-pay the 30 yr mortgage. This can be an even better option because it provides you with flexibility that you don't get with the 15 yr. If you need any help with the calculation feel free to contact me.
  • September 23 2012
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The equity position does not matter at all on a streamline regardless of if it is from a 30 to 15 year, however you must meet the 5% benefit rule. You new payment has to be 5% lower than your current payment, unless you are in an adjustable rate mortgage and your loan is going to adjust within the next 12 months.

Typically you will have equity anyway, because the FHA uses the appraised value from the last time you bought or refinanced into the FHA loan in the first place.

If you do not meet the 5% benefit on a 15 year loan you can simply try a 20 year loan product. The rates are comparable, and you can alway just pay more towards the principal to lower your term to a 15 year while still benefitting from the reduced rate of the 20 year.
  • October 02 2012
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