Answers (4)
- Ray Stevens, "Ray Stevens"
- Contributions:460
NJ,
What is your reason(s) for waiting?
What is your reason(s) for waiting?
I assume you have either an FHA or VA mortgage. The answer depends on whether there is a net tangible benefit to you and whether or not you have to pay closing costs.
You can do a streamline refinance with or without closing costs. If you opt for the no closing cost option, your interest will be higher than if you pay closing costs (which can be rolled into the mortgage). The reason the no closing cost option has a higher interest rate is the lender has to pay the closing costs for you.
The beauty of streamline refinances is you can take advantage of it more than once - and you don't need an appraisal. So even if you're upside down on your mortgage, you can still refinance into a lower rate or a shorter term mortgage.
There's speculation that mortgage interest rates will not be going back down anytime soon if at all. So, if you will realize a net tangible benefit today (i.e., lower monthly payments or a lower term with an increase of no more than $50/mo in payment), then it's worth it to take advantage of a streamline refinance.
If you do a streamline refinance today and mortgage rates do go down again, you will still be able to take advantage of the program later on. In theory, you can refinance every month. In practice (for FHA mortgages), you must wait about 3 months before you can refinance again as that's how long it usually takes for the mortgage insurance certification to reache HUD. It must be registered with HUD before you can refinance again.
You can do a streamline refinance with or without closing costs. If you opt for the no closing cost option, your interest will be higher than if you pay closing costs (which can be rolled into the mortgage). The reason the no closing cost option has a higher interest rate is the lender has to pay the closing costs for you.
The beauty of streamline refinances is you can take advantage of it more than once - and you don't need an appraisal. So even if you're upside down on your mortgage, you can still refinance into a lower rate or a shorter term mortgage.
There's speculation that mortgage interest rates will not be going back down anytime soon if at all. So, if you will realize a net tangible benefit today (i.e., lower monthly payments or a lower term with an increase of no more than $50/mo in payment), then it's worth it to take advantage of a streamline refinance.
If you do a streamline refinance today and mortgage rates do go down again, you will still be able to take advantage of the program later on. In theory, you can refinance every month. In practice (for FHA mortgages), you must wait about 3 months before you can refinance again as that's how long it usually takes for the mortgage insurance certification to reache HUD. It must be registered with HUD before you can refinance again.
- Lynda Mckenzie, "Lynda Mckenzie"
- Contributions:166
It would depend on your current rate.
If you have a bit of equity, I would suggest doing a no points/no closing cost streamline. If rates drop again after you close, you can refinance again within 90-120 days.
If you have a bit of equity, I would suggest doing a no points/no closing cost streamline. If rates drop again after you close, you can refinance again within 90-120 days.
- Myersteam_1
- Contributions:558
Need more information, what is your interest rate now ? Where are you located ? We will need more information to help you make a decision.
SHOULD I STREAMLINE NOW OR WAIT A LITTLE LONGER
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