- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (7)
- Caveat Emptor
- Contributions:500
no, its not, but 5.5% is a darn good rate. Be happy with it, if you ever buy another house, you'll probably be paying well over 6.
" Actually, with FHA streamlining you can roll the closing cost into the mortgage."
Actually as Robert correctly said you cannot without getting an appraisal. If the OP originated the mortgage in 2009 for 130K with 124K remaining, there is a high likelihood they are upside down as is a problem for many. You can do an FHA refi with an appraisal and roll in costs, but they need to be at 97.75% LTV or less.
To repeat, you cannot do a streamline without an appraisal and roll in closing costs.
Actually as Robert correctly said you cannot without getting an appraisal. If the OP originated the mortgage in 2009 for 130K with 124K remaining, there is a high likelihood they are upside down as is a problem for many. You can do an FHA refi with an appraisal and roll in costs, but they need to be at 97.75% LTV or less.
To repeat, you cannot do a streamline without an appraisal and roll in closing costs.
- 1hardwrkr
- Contributions:6
I have to add that in addition to the monthly amount you are saving, you will need to look at the amount you save over a 5-10 year period. It can be significant. Unfortunately, PMI rates have increased so you will be paying more there but only if you are currently paying for PMI...
- 1hardwrkr
- Contributions:6
Actually, with FHA streamlining you can roll the closing cost into the mortgage. I reviewed the amortization schedule and the amount of interest paid each year good. I'd recommend you contact your bank that you currently have your mortgage through. I was told by a different bank to do so, they said the process is even more straight forward that way. Again, you can roll the closing costs into the mortgage. I was advised that by Bank of America & Wells Fargo...Also, numerous sites have stated this when I researched this information.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
You can not roll closing costs and prepaid items into a FHA streamline without getting an appraisal. Also, lower rates are available, so on a 125k at 3.75% you would be looking at a P&I around $585 and MMI around $121. This would be savings of $90 or so...
However, you would have to come up with the closing costs and prepaid items; or take a higher rate and have the lender offset the costs with a lender credit. This would obviously eat into the benefit. I would pass.
However, you would have to come up with the closing costs and prepaid items; or take a higher rate and have the lender offset the costs with a lender credit. This would obviously eat into the benefit. I would pass.
- Jay Armbruster, "JAYS1"
- Contributions:40
With the numbers you gave, the amount of savings would be around $53 a month. FHA requires at least a 5% payment savings to benefit the borrower.
Your original loan of 130K @ 5.5% monthly payment is $738 and MI is $59 = $797 total
Your new loan amount would be around 130K after you roll in closing cost, escrow account and pre-paid interest. At 4.0% your new monthly payment would be $620 but your MI would more than double to $124 = $744 total
Ask yourself if saving $53 a month worth it? How long do you see yourself living there?
Your original loan of 130K @ 5.5% monthly payment is $738 and MI is $59 = $797 total
Your new loan amount would be around 130K after you roll in closing cost, escrow account and pre-paid interest. At 4.0% your new monthly payment would be $620 but your MI would more than double to $124 = $744 total
Ask yourself if saving $53 a month worth it? How long do you see yourself living there?
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Dee, lenders would need more details to calculate your savings. You can request quotes through Zillow by clicking on "get custom quotes" under mortgage rates. However, I have found it was not worth it to many customers with rates in that range because they have changed the FHA streamline guidelines and increased the mortgage insurance.
While rates are low, insurance has increase from .55% annually to 1.15% and you can no longer roll in closing costs or prepaid items without an appraisal. While they have made it easier for conventional loans owned by Fannie and Freddie to refinance, the Feds have made it more difficult for consumers with FHA loans.
While rates are low, insurance has increase from .55% annually to 1.15% and you can no longer roll in closing costs or prepaid items without an appraisal. While they have made it easier for conventional loans owned by Fannie and Freddie to refinance, the Feds have made it more difficult for consumers with FHA loans.
FHA streamline refinancing, is it worth it?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.