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I need FHA Streamline help

I really think I would benefit from this FHA streamline process.  My current rate is 6.625%.  However, I have run into some roadblocks, I think.  First, I can't find any concrete information on how this program works.  I have an FHA loan and haven't had any late payments since getting the loan 6 years ago, but is that enough?

My loan was sold to Midland Mortgage from Citibank. I contacted Midland about this refi and they said sorry, we aren't accepting applications for refinance.  I then contacted BoA, they told my I can only streamline thru my current lender.  I then tried QuickenLoans online because they are a recommended company thru my employer .  The woman I spoke with there said the best she could get me was 4.5% and I would need $3,300 dollars to make it happen. She said most of the money was for a new escrow account, which I would eventually get refunded from Midland mortgage. She also said I might be able to skip one mortgage payment, she wasn't sure and I would get a $500 rebate at closing.  But she would never let me see the numbers unless I agreed to proceed with the refi. I wasn't real keen on that, seemed kind of fishy, but maybe that's how this whole thing works.  Also, when I first spoke to her I told her I had $2,600 saved to do this and she said the most I would need was $2,300.  So I'm still wondering how the amount needed went up $1,000, unless she made a mistake somewhere and just wouldn't tell me.

Finally, my credit score is just under 800 (last I checked), I thought I would qualify for a rate better than 4.5%, but maybe I'm not understanding how the interest rate works.  I thought it was mostly based off of my credit score.

I live in Cheektowaga, NY (suburb of Buffalo, NY) and I would be looking to refinance $125,000.  Can any help me figure this whole thing out?!
  • August 12 2012 - Cheektowaga
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Answers (13)

Profile picture for user1796153
Hi, I have a similar situation as Clay with a few exceptions.
My current mortgage is with BoA, currently owe 305,000. Yesterday they offered me a streamline refi from my current 4.75% to 3.25%, closing costs of $1100 and next payment free. I have an excellent credit score (as does wife). Only caveats: currently negative equity (last checked was 260,000 last year) and 2 years into 30 year fixed. Location - Chicago, IL.
BoA stated they could lower my payments by $160 a month and the PMI would stop after 5 years.

My questions:
Is this a good enough offer?
Would other banks wave the PMI or is that even a possibility?
Should I shop around?

Also, anyway I could/should ask for 15 year fixed?
  • April 17 2013
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Clay - I am actually in Woodstock, GA and just contacted Midland with the same run around. Would it be alright to contact you in discussing my FHA loan?

Shawn Stacey
  • April 17 2013
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Thanks Clay for your help!!

Happy Weekend Sir
~DJ 
  • February 09 2013
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see my last post
  • February 09 2013
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also I am currently at 6% 30yr/ FHA since the loan began 10yrs ago

  • February 09 2013
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You do not need Midland, you can go to any HUD approved Lender or Broker. You can do a no appraisal streamline, you will probably qualify for a 15 year if your rate is 6% or higher now or a 20 year and still save money per month. A great lender to call in CO is Nic Netherton, contact him through his profile page:

 http://www.zillow.com/profile/Colorado-Lender/

  • February 09 2013
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My loan was sold to Midland Mortgage from Citibank in late 2012. I contacted Midland about the streemline refinance and they said sorry, we aren't accepting applications for refinance.
My Balance is 123000 orig purchase 155000, 10 years ago, never a late payment, my score is above 700.
  • February 09 2013
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user8546221, what is your current balance & estimated credit score? Have you also tried to streamline and not able? If so, what was the reason given?  
  • February 09 2013
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I am in the exact situation, what was the final outcome?
DJ in Colorado
  • February 09 2013
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The FHA Streamline is a very easy and straight forward process.  The catch if there is one is simply the fact that standard closing costs can not be financed into the new loan.

For anyone to even attempt to offer 4.50% and talk about costs is just plain crazy in the current enviroment.  These are closing between 3.25% and 3.75% depending on your loan size and how much of a credit you will need to cover escrows and costs. 

You should look to contact someone through Zillow and obtain a more competitive quote.  Good Luck



  • August 12 2012
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Contact Joe and get his referral.
  • August 12 2012
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You should be looking at 3.25-3.5% depending on how much of a credit you are looking for to cover the closing costs.  I didn't even think 4.5% existed.  If you would like to contact me through my profile, I can put you in touch with someone in my group licensed in NY and can assure you will make the experience a lot more pleasurable than it has been
  • August 12 2012
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Clarification to the above....my credit score is/was 715, so I was off a bit.
  • August 12 2012
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