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Zero cost FHA streamline refinance possible?

I'm looking to reduce my payment and take advantage of the lower interest rates. However, I do realize the MPI regulations may have increased since I purchased (April 2010). 

Current Balance: $90,800
Current Interest Rate: 5.125%
Payment (Principle, Interest, MPI): $563.50

It doesn't make sense for me to bring closing costs to the table because I don't think the payment will be reduced by much at this point and it would take too long to cover those costs, which is why I'm looking for a zero-cost option. 

What do you think? Is there something out there that could work for me or could anyone point me towards a calculator/tool that I could use to try and compute a new payment? 

Thanks in advance. 
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October 23 2013 - Lafayette
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Answers (9)

One of the things that we need to know is what is your credit score? Do you have good credit. If so let me look at a conventional option and do away with your mortgage insurance all together and get you a better rate. Contact me if you have good credit I can save you money.
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March 26
Do not see the benefit with an FHA loan.  Not enough savings to justify with no closing costs.  Good Luck!
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March 21
I don't see a benefit unless you're switching to a conventional mortgage without mortgage insurance.

You'll eliminate the mortgage insurance and slightly improve the rate. 

These can be done without out of pocket expenses presuming you have sufficient equity(value) now in your property.

Best of Luck.
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March 21
We usually make it so people only have to bring about one payment to closing which covers odd days interest and new escrow set up. You recoup that in a month with a skipped payment return from your other loans escrow account. I would look in to a with lender paid MI. You can usually roll in $2000 toward closing costs and still be not considered a cash out. 
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March 21
Although rates are currently lower, you will not benefit a great deal due to how recently you purchased.  For example, on a streamline refi at 3.875%, your payment (principal, interest, MIP) is roughly $536.  I recommend to stay where you're at unless you purchased your home as some sort of distressed sale, have lots of equity and stellar credit.  Then, you will be able to work yourself into a conventional loan and get rid of PMI.
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October 23 2013
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Additional Information: 

Value - $105,000 (Therefore Equity is about 10%)
Purchased - April 2010 (So after 6/2009)

I'm definitely still looking at a 30 year and don't have much cash to bring to the table to increase the LTV, so I would be looking at PMI with conventional as well. Ideally, this would be less than the higher MPI with FHA and could drop off sooner as well (as soon as I reach 80% LTV). 

Conventional may indeed be a better approach, but will require additional fees/closing costs compared to a streamline FHA, correct? 

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October 23 2013
Going FHA would not be in your best interest at this point.  A loan officer would need to go over your options.  One important thought is how much equity do you have in your current home?  This would determine to refinance in to a conventional loan, perhaps in to 15 year note . . .
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October 23 2013
When did you take out your current loan?  With FHA, unless you took the loan out prior to 6/2009, the MI is now much higher and it would probably be better for you to stay where you are at.

Now, if the loan is prior to 6/2009, yes, we can do a no cost FHA streamline and lower your rate.

Contact me through my profile if you have further questions
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October 23 2013
Doing a no closing cost loan will generally result in having to take a higher rate. However, if that rate is lower than what you have now, and your loan balance will not be increasing, then doing the refinance could be worth your time.

Any loan officer would be more than happy to go over your options with you. Ultimately, only you can decide if the refinance makes sense for your financial situation.
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October 23 2013
 
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