Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for Pat Sum

FHA Streamline refinance from 30 year loan to a 15 year loan.

Hello, Please shed some much needed info on the issue below.

Main question is: Is it possible to do a streamline refinance from a 30 year FHA fixed interest loan to a 15 year FHA fixed interest loan. Overall monthly payment is going to increase but am paying the same amount for the current loan anyways(when I include the extra payments). Is this possible per FHA guidelines.

Here are my details:
Current Mortgage: 280K, Originated Sep 2009, 30 year fixed FHA, Credit Score: 760+, Appraisal in 2009: 290K

Refi Request: Payoff amt from previous loan: 270K, 15 year FHA at a lower interest. My income went 10% up in the last 1 year. Home tax value came out to be 265K. So if the tax value is same as the new appraisal value, I owe more than the home is worth. Will the appraisal value be around the tax value or may wary widely?

What are my refinance options. I want to get down to a 15 year loan and would like to put down as little down payment as possible. Can afford a down payment in the worst case though.


Thanks.

Pat
  • October 27 2010 - Charlotte
  • 1
    1Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (1)

Hi Pat - Fantastic question and thanks for the details. Each lender is going to have a different set of interpretation of HUD guidelines so you are wise to ask now before you get stuck into a loan that doesn't help you to meet your needs.

At SunTrust here is how we interpret FHA Streamlined refinances as it relates to what we in the biz refer to as payment shock;



"A mortgage on a principal residence may be refinanced to a shorter-term mortgage, provided the monthly principal and interest increases no more than 20%. Any increase exceeding 20% requires a credit review."


My advice is to look at ALL options before deciding that an FHA streamline is your best choice. Your lender should e able to provide you with a comprehensive side by side analysis which should be easy to compare. If they cant or wont, then find a lender who can and will.


Good luck!


Ricardo Cobos - Sr. Loan Officer
  • October 28 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.