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Profile picture for atlredan14

What is a competitive rate for no points 30 year FHA as of 4 Nov 2010?

Payoff $168,600; I am shopping for an FHA Streamline refinance; quoted closing cost of $4600 includes 1% upfront MIP added to loan balance and 4.25% 30 year rate; at 4.25% should lender be paying my closing cost?
  • November 03 2010 - Stone Mountain
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Answers (3)

Profile picture for michaelmccollum
A couple of things to consider: the difference in payment between 4.25% and 4.625% may not warrant the out of pocket expense.  Ask the lender if they can do a total cost analysis to help you see which gives you the lowest total cost over time.  If it does make sense, but the out of pocket expense makes it difficult, you should be able to set it up so that you can skip two payments.  The payments you skip can help you pay for the closing costs.  You should also get some money back from the current escrow account with your current lender.  This can be a great time of year to do the refinance as your county taxes were either just paid or will be paid by the time you close.  This will keep the money it takes to set up your new escrows to a minimum.  Hope that helps.
  • November 03 2010
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Profile picture for atlredan14
thanks; should you take the 4.25% and pay out of pocket $3K or 4.65% no out of pocket; lender says I must pay prepaids at higher rate regardless
  • November 03 2010
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An FHA streamline with no appraisal requires the buyer to pay the closing costs separately or to have them included in the interest rate. If the closing costs are included in the rate and the principal balance stays the same, the rate should be around 4.625% on a $169,000 FHA refinance.   
  • November 03 2010
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