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Jeff Phillips


Loan Officer (13 years experience)

Purchase Loan,
Mortgage Planning,


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IS FHA Streamline useful for me?


Probably not with rates today. 4.5% would cost a point and would only reduce your Principal/Interest by about $80 a month. Cost would be about $4,000 which means that it would take about 50 months to break even. If rates came back down to where 4.5% had enough lender credit to pay for closing costs then I would change my mind and say yes. The only current pitfall is that as of October, 2010 the monthly insurance premium went from 0.55% to 0.90% so your monthly MI would go up if your loan was originated before Oct. 2010.Property tax impounds are also usually an issue in months where they are collecting many months up front like August and September (here in California anyways), the lender may need to collect 7 - 8 months taxes to fund the new impound account and it may take a couple of weeks to get the refund on your current impound account. This would definitely effect how much you had to bring to close your loan. In summary, I would probably ask to be added to a "rate watch" list (we have one) and be notified when rates dropped to where it made sense to do a streamline refi.- Jeff415-867-6488