Profile picture for VikasMehrotra

Loan options

I bought a house in 2010. My loan is 30 years fixed FHA. I am thinking of refinance. Can I get 5 yrs ARM streamline FHA or should I have to take 30 Fixed streamline FHA? What is the benefit of non-streamline FHA? My property value is same since I bought.
  • February 02 2012 - Irvine
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Answers (5)

Profile picture for CA Direct Lending
Hi, Vikas.

Are you related to Kapil?
  • February 02 2012
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Yes, you can do a streamline changing from a 30 Yr to a 5/1 Arm. 
  • February 03 2012
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Please do some investigating with respect to the current value of your home.  There is an option of doing an FHA streamlined refinance without an appraisal.  Good luck. 
  • February 03 2012
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You can change programs with an FHA streamline refinance, but you will have to make sure that your monthly payments drop at least 5%.

You would use the streamline refinance process because there is no advantage to do otherwise.

If you property does not appraisal you can choose to refinance with an FHA streamline refinance without an appraisal.  You would either have to pay the closing costs in cash or choose a higher than market rate and let the lender use their premium pricing to pay your closing costs.

Actually taking this route takes away any risk on your part becuase you would be lowering your rate to where your payments are at least 5% below where they are now at no cost to you.

Good Luck
  • February 03 2012
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If you have good credit and are 95% equity or below you might want to look at a conventional loan 5/1ARM. It will be a better rate with a lot lower mortgage insurance.
  • February 06 2012
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