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Answers (11)
Best Answer
- Total Mortgage Services, LLC, "Total_Mortgage"
- Contributions:56
Nic and Joe are absolutely correct about the rates not being were you would like, and you'd probably have to pay some points to get there, but FHA Streamline Refinancing is a great option.
As far as the program is concerned, the U.S. Department of Housing and Urban Development (HUD), in conjunction with the Federal Housing Administration (FHA), has permitted existing FHA borrowers to "streamline" the refinance process with ease since the early 1980s. The underwriting process within a FHA Streamline Refinance significantly reduces the documentation requirements when compared to a refinance of a conventional mortgage.
As far as the program is concerned, the U.S. Department of Housing and Urban Development (HUD), in conjunction with the Federal Housing Administration (FHA), has permitted existing FHA borrowers to "streamline" the refinance process with ease since the early 1980s. The underwriting process within a FHA Streamline Refinance significantly reduces the documentation requirements when compared to a refinance of a conventional mortgage.
There are, however, four main components that must be met in order for a borrower to utilize the FHA Streamline Refinance process:
• Principal and interest payments must decrease
• No cash-out refinancing
• Existing mortgage being refinanced must be an FHA mortgage loan
• All mortgage payments must be current
Many mortgage brokers and mortgage lenders offer a no-cost interest rate reduction program, meaning there are no closing costs. All expenses incurred during the FHA Streamline Refinance process are paid by the broker/lender by reducing their proceeds, which is based on the current pricing of the mortgage rate. Alternately, if an appraiser determines there is enough equity in the home, the broker/lender can offer an FHA Streamline Refinance at a lower mortgage rate by including the closing costs in the new loan amount. Either option presents the homeowner with the financial flexibility they need or want.
I hope this information helps. Best of luck!
Regards,
Total Mortgage Services
- Robert Lowery, "Bob Lowery"
- Contributions:2097
For someone with a balance of $300,000 or more a 1/2 point drop, their payment would drop $93. I think I am going to side with Joe on this one and say its still not worth it.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Philip, all my loans go through Wells Fargo, since we are owned by them. No, my rates did not go down twice yesterday and all indicators were that rates were up. The average rates quoted on Zillow and Bankrate actually rose yesterday. You must be the magic lender.
And, you don't have 4.5% with 0 points and origination fees.
And, you don't have 4.5% with 0 points and origination fees.
- Todd Bitter, "Todd Bitter"
- Contributions:40
It all depends on your original balance and how much you can drop the rate. If you can drop the rate by 1/2 a point and keep the new loan amount at or under the original loan amount you should qualify with no appraisal or income doc. You will need to have been on time the last year also. Good Luck
- Cory Blackburn, "loansbycory"
- Contributions:14
The amount you need to drop your rate for the streamline to make sense depends on your loan balance. For someone with a balance of $300,000 or more a 1/2 point drop in rate will make it worth doing.
This is a great program because there are no closing costs, no income check, and no appraisal. There are some "pre paids" added on that will raise your loan balance, but if you can save at least $100 to $150 per month with no closing costs, its a "no brainer."
This is a great program because there are no closing costs, no income check, and no appraisal. There are some "pre paids" added on that will raise your loan balance, but if you can save at least $100 to $150 per month with no closing costs, its a "no brainer."
they came down twice today. who do you put your stuff thru?
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Philip, are you saying you have a 4.5% rate without any points or originations fees? Actually, the rates did not come down at all today.
I agree with Nic and Joe, it still does not make sense.
- SmileH
- Contributions:6
Thank you!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Great program especially with some areas still falling in value. However in your case probably would not make sense as rates are not quite down to that level without some added closing costs.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
You would likely have to pay some points to get down to 4.5% with today's rates. Also if current loan was originated recently you would not be able to wrap all of the closing costs into the new loan unless you do a new appraisal.
How the Streamline Refinance Program works?
We have FHA with 5.5% and I'' be happy if we can lower it to 4.5 for example.
Thanks!
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