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Would an FHA Streamline or Conventional refinance be a better option? What are the pro's and con's?

I have done a lot of research lately, and received some quotes for both types of loans. I will list the general details for the quotes below, but basically I am looking for more advice as to which type would be better, what the pro's and con's are of each, as well as if there may be a better rate available? 

My current loan is 3.875% at 30 year FHA, purchase price was $166,500, current home value approx 172,000. Current balance 158,000.

1st quote w/ current mortgage company:
FHA streamline: 30 yr @ 3.25%, additional MIP $1950 after credit, closing cost $347.

2nd quote w/ current mortgage company:
Conventional: 30 yr @ 3.625%, closing cost $1040, 0 due at signing.

I also received another FHA streamline at the 3.25% with no closing costs from a lender I found on here on Zillow, as well as multiple quotes from my bank but they were not as good.

I appreciate any help!
  • December 05 2012 - Green Bay
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Answers (1)

Probably FHA streamline, if anything.  Adding any costs for what you are dropping would be worth it eventually but make sure you plan on staying in the house long enough to make it worth it.

We can guess mortgage insurance for the conventional option but it would be an important factor in helping us to help you.
  • December 10 2012
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