Profile picture for megea

is there a way i can compare fha streamline rates all of the quotes are for regular fhas

I have a fha with orignal balance of 417k, originated in 2009,  balance now is at 406k. I have a 790 transunion score from myfico.com. I currently have a 5.0 interest rate and want to do a streamline refi.
  • November 02 2010 - Oxnard
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Answers (6)

Rates don't change or become different between Streamlines and regular FHA refi's or purchase loans.  4.5% will still be the number 4.5% tomorrow...it won't go up or down.  That rate will have a price tag though, that's what will change.  On a Streamline you will get quoted a rate that has a price associated with it that leaves enough on the table for the broker/lender to pay your closing costs for you.  It takes a conversation, not a "quote."  
  • November 03 2010
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Profile picture for tbro316

I agree that there is no difference to the base rate but if the lender is going to pay all of your closing costs he may need to give you a higher rate to offset those expenses. 

  • November 03 2010
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I was thinking the same thing Greg!
  • November 03 2010
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Profile picture for Patriot Bank Mtg
There should be no difference.  if you are told there is then RUN!
  • November 03 2010
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There is no difference between the mortgage rates for streamline refinance and regular FHA refinance. Based on the loan of $417,000 @ 5% you should be paying $2238.55 as Principal and Interest. You should also have a montly MI of 0.5%. This gives you a blended rate of approx 5.5% and the pmt of $2367.68

Your need to save a min of 5% of that payment to be eligible for a streamline refinance.

The current rates are around 4.25% with no closing cost P&I = $1997.28. The current Monthly MI rates = 0.85 if LTV<95% giving you a blended rate of 5.1% and pmt = $2204.38 which is a saving of over 5% of the payment.

I am pretty sure that even with the raise in Monthly mortgage insurance you should be able to justify the refinance at this rate. I would suggest to refinance to take advantage of the low rates since its costing you nothing. The MI would drop off after 5yrs if the LTV gets below 80% and then you can enjoy the lower rate for a long time.

  • November 02 2010
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What rate you would be offered for your FHA streamline refi depends on many factors.  If you need/want a no appraisal streamline and do not want to contribute any cash to the deal then a lender will have to increase the market rate to cover most of your closing costs.  That increase would typically result in a rate a 1/4 to 1/2 of a percent higher than the market rate--for example 4.25% instead of 3.875% on a 30 year fixed rate based on today's pricing.  Reducing your 5% to that 4.25% may not result in much of a monthly savings based on the new FHA mortgage insurance rates---and you must reduce your overall mortgage payment by at least 5% to meet FHA's net tangible benefit requirement.   I would suggest contacting an experienced FHA loan officer who can give you more precise guidance based on your situation and needs.  Good luck!  
  • November 02 2010
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