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Is an FHA streamline worth it for me?

I currently have a 30 year fixed FHA loan at 5.5%.  It was financed in April 2010.  My current loan balance is $232,500.  My current payment is about $1720 of which $1349 is P&I.  My mortgage broker wants to do a 30yr FHA streamline which would add $2300 to my current principle, and lower my total payment to $1573.  My wife and I intend to stay in the house for another 5-7 years or so.
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March 13 2012 - Cumming
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Your escrow balance shows $1907.95. Once you refinance the escrow balance will be sent to you about 30 days after closing. What I was interested in is how much they estimate for your new mortgage. Your transaction will have closing costs, prepaids, and UFMIP. The UFMIP fee will be added to the base loan amount which is the $2300 you stated they are adding to your loan balance. That leaves the closing costs and prepaids. The prepaids includes prepaid interest plus several months of tax and insurance reserves which is what I was curious about, the number of months they estimate you will need. Since you were told you might get up to $500 back from closing, then the lender credit is paying all closing costs and prepaids plus some extra, just curious how much they have on their GFE or worksheet for escrow. The savings per month is good and it is definitely worth doing. I wouldn't waste any time on the closing cost tax write off aspect because if there is anything to write off it is spread out over the term of the loan and you wont notice it.              
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March 13 2012
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@Clay- Looking at my current lender (MetLife) I see the following online as an upcoming statement:

Interest Rate for 4/01/12: 5.50000%
Current Principle Balance: 231,610.12
Current Escrow Balance: $1907.95
Interest Paid Year-To-Date: $3,192.49
Taxes Paid Year-To-Date: $1,988.80

Principle & Interest: $1,349.16
Escrow: $377.05
Total Amount Due: $1,726.21
Payment Due Date: 04/01/12

Last month I had:

Mortgage Ins Paid:
    Date: 03/05
    Amount: -104.90
    Principle: .00
    Interest: .00
    Escrow: -104.90
    Fees: .00
Payment Applied:
    Date: 03/12
    Amount: $1,790.90
    Principle: $286.30
    Interest: $1,062.86
    Escrow: $441.75
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March 13 2012
If you intend on staying in the home for 5-7 years then it's a no brainer. It is also a no brainer to check out some other lenders or brokers to find out if you can get an even better deal. But if you trust this guy and like him then go for it. Also talk to a tax pro about tax write-off incentives from the origination and other items. A double no brainer. And if you can- keep The same payment and add the extra to principle.
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March 13 2012
Thanks but I was curious about how much they are estimating for your new escrow.  
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March 13 2012
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The proposed monthly breakdown looks like:

Interest: 3.750
Principle + Interest Payment: $1,087.51
Est. Taxes + Insurance (Escrow) - Includes Mortgage Insurance: 486.37
Total Est. Monthly Payment: $1,573.88
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March 13 2012
Interesting, how much is being escrowed for taxes and insurance in dollars?
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March 13 2012
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The broker says that it will cost me nothing out of pocket, and that I may end up receiving $500 in cash.  Their origination fee is ~$5000.
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March 13 2012
Are you paying aprx $1400 at closing?
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March 13 2012
It looks like there would be a benefit to you, looks like using your numbers your savings would catch up to that cost in 15 and a half months. 
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March 13 2012
 
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