Profile picture for BoulderHomeHunter

Options for my FHA loan at 5.5%

Bought a home with  FHA loan in Aug 2009 for 5.5%. The remaining loan is 270K (Zillow  303 K). Quotes for FHA refinancing varied between 4 to 4.5% (in July) with monthly reduction in payment 150-180$ and cost ~$7000 rolling into the loan. Any chance for me to get a conventional loan ?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010 - Louisville
We think we've answered this question for you!
 
 

Replies (7)

a fha streamline maybe a better optoin. based up on your loan to value.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010
It all depends on your new appraised value, and your proportion of mortgage to value. If you have reached 90% of your new appraisal, or less, a conventional loan could work. There have been some changes to FHA loans in the past 30 days which have greatly reduced the up-front costs, while increasing the monthly costs, but rates have also improved somewhat. It's quite possible you could save the $150-$180/month now without adding so much to your principal balance with an FHA streamlined refinance. Unless you have paid down a lot of extra principal over the past year, and had a solid increase in your appraised value, your best bet is probably still an FHA loan.

Find a trusted lender and discuss your goals. A low-to-no-cost option sounds like your best buy. Your rate might be slightly higher, but the up-front cost savings should make it worthwhile.

Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010

Depending on your credit score and the appraised value Conventional Financing may make more sense.  Monthly MI will likely be less than the .85% that will be required on FHA.

Do you have a good idea about your current credit score?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010

2nd vote for FHA streamline refinance. 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010
You may want to look at this and then vote

FHA vs, Conventional


The conventional loan is .125% higher in a rate.  Depending on the actual value of the property and the credit profile Conventional financing may be a better option.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010
Streamline FHA! settled lol
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 18 2010
You should find a lender that can do an FHA streamline loan and cover most of your closing costs.  $7000 in closing costs seems high- you may want to shop around before locking.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2010
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Low down payment on a $475k loan
Profile picture for Rudi Hofmann
Latest reply by Rudi Hofmann
October 19 2011 | 6 answers
Options for my FHA loan at 5.5%
Profile picture for Dave Beckmann
Latest reply by Dave Beckmann
October 20 2010 | 7 answers
  • Posted by BoulderHomeHunter
  • In Mortgage
  • October 18 2010
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 6933 Marshall Dr, Boulder, CO Home For Sale
    6933 Marshall Dr, Boulder, CO 80303

     For Sale: $537,500

    • Beds: 3
    • Sqft: 2333
    • Baths: 2.0
    • Lot: 121532
  2. 134 W Sycamore Ln, Louisville, CO Home For Sale
    134 W Sycamore Ln, Louisville, CO 80027

     For Sale: $499,000

    • Beds: 5
    • Sqft: 2890
    • Baths: 4.0
    • Lot: 8600
  3. 107 Aline St, Louisville, CO Home For Sale
    107 Aline St, Louisville, CO 80027

     For Sale: $695,000

    • Beds: 3
    • Sqft: 3172
    • Baths: 4.0
    • Lot: 10327