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Lender Costs for Streamline FHA refi

We have an FHA loan that originated pre-2009 at 6%. We would like to take advantage of the new streamline refi. I realize that there is the UFMIP of .01%, but what do lenders typically charge to process this? Is there a cap that FHA mandates on this fee? I want to make sure that we don't get charged too much when we begin looking at banks. Thanks!
  • August 24 2012 - Columbus
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Answers (6)

Closing costs can not be rolled into an FHA streamline loan, neither can escrows for taxes and insurance.
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yes they can; on a streamline refinance with appraisal (and sufficient equity established based on that appraised value).

In addition, though often possible only when using the same lender,ecsrows are allowed to  be transferred from the old loan to the new loan.
  • August 28 2012
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The credit per the interest rate should cover all your closing costs. Closing costs can not be rolled into an FHA streamline loan, neither can escrows for taxes and insurance.  Sometimes the lender credit will cover a good portion of your tax and insurance escrows as well, just depends on how much we can get for you per the rate.  Sounds like if you are at 6% currently and your loan was endorsed before May of 31st of 2009 you can look forward to some excellent monthly savings with the reduced MI at .55 and MIP fee at .01%!  I would be happy to help you!
  • August 28 2012
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You should look for a bank that will charge you ZERO Lender fees and they cover all the title company fees.   You should be prepared to come in with your prepaid cost for taxes and insurance. 

Erin!
  • August 24 2012
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At that amount, I'd be looking for an Adjusted Origination Fee of Zero or a small negative number, and expect to pay 3rd party expenses and prepaid items for new impound account.
  • August 24 2012
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Good point. The loan amount is 117,000 so it is actually lower than 125,000.
  • August 24 2012
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Normal structure on streamline is bank gives closing cost credit to pay ALL fees, and if loan amount is large enough credit also used to pay toward setting up new impound account.

Anything less than this you should look elsewhere (unless you have a loan size of 125,000 or less).   
  • August 24 2012
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