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Is it a good idea to streamline my FHA loan?

Currently at 6% streamline would change interest rate to 3.75% 30 yr fixed, UFMP is $24, no ppp, and current MIP is grandfathered. Loan officer stated the payment with drop $385 a month. Does this sound to good to be true and if not what specific questions should I ask the loan officer?

  • June 07 2012 - Fairfield
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Answers (26)

4% rate at 647 FICO is robbery.   The initial rate you were promised is very much available at that FICO score with ALL closing fees paid by lender credit at your 647 credit score.

I can provide you a Good Faith Estimate and a Rate Lock today, and I don't have to check with my underwriter.

Would be happy to work with you and would also advise if your credit was just pulled that we get our credit inquiry done as well so we can ensure at least a 640 qualifying score.
  • June 08 2012
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Roll TIde and I agree, within a couple hundred is very good

Oh, Go Falcons, Go Braves!!!!!
  • June 08 2012
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Also know a thing or 2 about Fairfield!

Go Falcons!
  • June 08 2012
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Go Gators!
  • June 08 2012
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And Huskers didn't even check with their UW before that statement... 
  • June 08 2012
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At your loan amount of $240,000 you should still be able to get 3.75% with no increase in principal, no appraisal, no money out of pocket to close. Even your prepaids and interest can be covered. You would "skip" the next payment and get your current impounds refunded to you. 

Keep shopping!
  • June 08 2012
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There is no appraisal for this loan, as I did not want to go that route either. I'm going to contact him about the additional funds added to the loan as well as the 4%.  I'm a little freaked out now from what I'm hearing from you guys.  Making me a little nervous with this broker/company.

  • June 08 2012
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" He did say he would have a GFE to me by Monday no later than Tuesday. He wants to talk to his underwriter first..."

It's amazing how consumers still believe this kind of verbiage. 
What is there to talk to an underwriter about in issuing a GFE? 
  • June 08 2012
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I'm sorry I was incorrect by saying "Accrued Escrow" it would be the 50 days of interest that is added into the loan.

It doesn't matter if it's prepaids, interest, or closing costs, none of it can be added to the principal balance and financed unless you are using an appraisal which is a bad idea. 647 Fico should not push you up from 3.75% to 4%, sounds like asking for a GFE changed the terms. 


  • June 08 2012
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I'm sorry I was incorrect by saying "Accrued Escrow" it would be the 50 days of interest that is added into the loan.

Clay I will look into contact Justin today or early next week. Thank you so much for your feedback.

Credit score came back at 647 which has now put me at a 4% rate.

He did say he would have a GFE to me by Monday no later than Tuesday. He wants to talk to his underwriter first...

 

  • June 08 2012
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You are being ripped off. At 3.75% you can streamline without raising your principal balance and even include all new impounds. You should end up ahead of the game at that rate. 

Your loan officer is also shifty if they are telling you that you cannot get a GFE within 3 business days of your application.
  • June 08 2012
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You are not paying ANY points and there is no origination fee.  ALL closing cost is paid by Home Financing Inc.  EVERYTHING- Title & Escrow, County Recording, Notary, and all Government Tax.

That statement is different from:

The current loan balance is 240k the new balance with this loan would be 242k due to some accrued escrow

No prepaids can be rolled into the new loan amount if it is a no appraisal streamline. If he is planning a streamline with appraisal then you can add that BUT you will be at the mercy of the new appraised value ( plus pay $400 appraisal fee for no reason ) and restart the MI clock all over again, BIG mistake.

You really need to contact Justin right now, he can tell you if you qualify and get your loan locked on a no appraisal streamline and almost a given with better pricing. At least get his second opinion BEFORE you commit.    

  • June 08 2012
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Has anyone ever heard of Home Financial Inc? I hesitated to streamline with the "middle man" for so long because of scams. I did a bunch of research and could find anything negitive on this company and/or the broker "Kurt Cymerint". He sounds legit and is very good.
  • June 08 2012
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He stated that the added money was because we're not paying 50 days of escrow. As far as the GFE...I'm just relaying what he told me. A lot of this stuff doesn't make sense to me :) What would you suggest I tell him?
  • June 08 2012
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Does that sound right?

No....He said he was paying for EVERYTHING. If you are doing a streamline with no appraisal then NOTHING can be added to the loan balance except the $24 UFMIP.
What do they mean by   " until he knows for sure he can get the loan funded."  You either qualify or you don't.
  • June 08 2012
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Accrued escrow? That is not accurate. Your new balance should be your current principal balance plus one month of interest that will account for the payment you "skip". If you applied for the loan you should be provided a GFE within 3 days. I have several grandfathered streamlines that are already locked and underwritten with case number assignment as remaining condition. If your broker can't provide A GFE or isn't sure they can fund the loan that is a red flag.
  • June 08 2012
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The current loan balance is 240k the new balance with this loan would be 242k due to some accrued escrow. I asked about the GFE and was told that I wouldn't get one until he knows for sure he can get the loan funded. Does that sound right?
  • June 08 2012
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I wish I could get my disclosures to match to the penny. I'm usually within a couple hundred dollars and up to now I thought that was good.

  • June 08 2012
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Tell him you want the $24 for the new UFMIP paid also at closing from the rebate. Tell him he's a liar if he raises your principal by the $24

Then...  sit back and watch his head explode.

Coffee out the nose!

user595670, he says all disclosures will match up to the penny, so you have a GFE or worksheet? What is the loan balance and the new loan amount?  
  • June 08 2012
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If you are comfortable with the loan originator the quote is reasonable, depending on loan amount. Most banks currently provide a credit toward closing of at least 4% of the loan amount for the 3.75 rate so there is plenty of money to pay the third party fees and the originator. If your loan amount is large enough you should be able to find an offer that also includes a credit to setup your new impound account, this way you can actually earn money by doing the loan.
  • June 07 2012
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Also, what's your loan amount? You may want to explore an option for a lower rate and just bring your regular payment to closing. This could be possible if your loan amount if large enough.
  • June 07 2012
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Tell him you want the $24 for the new UFMIP paid also at closing from the rebate. Tell him he's a liar if he raises your principal by the $24

Then...  sit back and watch his head explode. 

Make sure to fill us in.
  • June 07 2012
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Touchy isn't he, a simple answer like -$1500, -$1000, -$2000, would have worked.
  • June 07 2012
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This is the response from the loan guy:

You are not paying ANY points and there is no origination fee.  ALL closing cost is paid by Home Financing Inc.  EVERYTHING- Title & Escrow, County Recording, Notary, and all Government Tax.  This is a true ZERO cost loan.  Nothing hidden in to your loan.  I explained every penny involved during our phone conversation.  All loan disclosures will match up to the penny.

  • June 07 2012
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If you received your loan prior to May 9, 2009, then yes.  He is probably correct.  I'd get a good faith estimate, but I would assume he is doing  a lender credit for all the bank fees and title fees.  It's a good deal.  take the savings and run with it..
  • June 07 2012
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What is the adjusted origination?
  • June 07 2012
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