Profile picture for user6535028

True cost for an FHA sreamline

I am currently considering refinancing my FHA mortgage.  Our concern is that we are planning on selling in the next  2-3 years so we are trying to keep our loan balance as low as possible.  Our current mortgage was setup in January 09 which I believe is a good thing for us and our current loan balance is 191,250.  Would it be wise to refinance now? 
  • May 29 2013 - Town of Belgium
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

You can keep your mortgage balance exactly the same as your current principal balance by utilizing a lender credit to cover all costs involved in the transaction.  As long as the current rate that yields this credit provides enough benefit as per FHA guides you would be good to go.
JD
  • May 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Clays advice is solid. Select a rate to provide a credit for all closing fees and your balance will not increase. You can also bring in cash to close to cover interest for the month you skip and to setup new impound account, which you will then get returned from current loan. (You can also look to get credits for this item). One other note is to confirm your endorsement date is before June 1 2009. Generally the endorsement will occur 1-4 weeks after funding though in some unusual cases it can take longer.
  • May 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user6535028
My understanding is that the changes in FHA would benefit our situation.  By having our original loan before June 09 we should qualify for the lower upfront mip (.01%)and if I understand correctly still the lower annual mip (.55%)  Is this correct? My concern it the other upfront cost (title...)?  Would this add up to a large enough sum that I would be better off staying with my current loan, or would this be included in the lender credit that Clay was talking about?
  • May 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

FHA has changed it's Rules.  Perhaps you might think about a conventional loan?  We suggest that you meet with a loan officer at two local banks to discuss if a refinance at this time is good for you.. 
  • May 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Do a No Appraisal Streamline, use a 30 Yr Fixed rate that pays enough Lender Credit to cover the Closing Costs.
  • May 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    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.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.