So I'm looking into refinancing our house. I think our only real option is the FHA Streamlining program.
Our home is probably worth a bit over 300K, and we owe 285K.
So, here are the think I think I know: Monthly PMI will increase to around 300/month. I currently pay 130/month. The cost of the Upfront PMI will be rolled into my loan so my loan value will increase. I should be reimbursed for part of my my MIP on my previous FHA loan? 30%-bought in January 2010.
Has anyone done this? Were you able to get a no-fee refinance? What lender did you go through?
If I can get my interest rate down to 3.5%, I think this will save us around $300/month. The only downside I see is paying any upfront loan coast (if I cant get a no-fee refinance), and having to pay PMI for at least another 5 years. I likely would have anyway though.
We did an FHA streamline refi. They use the appraised value of the house when you purchased it (they didn't even ask for a copy). Your mortgage had to have been assigned during a certain time frame to qualify though (I think its in the instructions you find in the link below). The bad part is that your PMI timeline resets. So before you had to pay your loan down to 78% LTV and PMI dropped off. Now you have to pay it down to 78% AND for a period of at least 5 years. With the streamline refi, we didn't have to pay the increased monthly PMI--ours stayed roughly the same. But you have to have a 5% decrease to your current payment in order to do it. So if your principal and interest + PMI is $1000, your new payment has to drop to $950 a month. This has some good info: portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/streamli
We went thru Quicken. They were awesome! I can PM you the name of the guy we used--he was very knowledgeable. Then they set up the closing with someone who can come to your work or home. We did a 3.375% 20 year loan in Nov 2012.
I was going to use Quicken, they were able to get me a lower rate, but PMI would be higher..unfortunately it would reset our term and I really wanted a 15 year rate- apparently if you went with FHA they can change the term with no equity obviously. So we didn't bother.
I was going to use Quicken, they were able to get me a lower rate, but PMI would be higher..unfortunately it would reset our term and I really wanted a 15 year rate- apparently if you went with FHA they can change the term with no equity obviously. So we didn't bother.
You can change the term--we did. We wanted to do a 15 year but the 5% rule got in the way.
I just closed on my FHA streamline the weekend before xmas. My interest rate went down from 5.37 to 3.25 on a 30 yr. Our MIP went from about $100 to $180 but our entire payment dropped $200.
We decided to just pay $200 per month extra to pay down the mortgage quicker and get rid of MIP. It is our forever home and we saved somewhere around $95k over the life of the loan by doing the refi (per our GFE)
We did an FHA streamline refi. They use the appraised value of the house when you purchased it (they didn't even ask for a copy). Your mortgage had to have been assigned during a certain time frame to qualify though (I think its in the instructions you find in the link below). The bad part is that your PMI timeline resets. So before you had to pay your loan down to 78% LTV and PMI dropped off. Now you have to pay it down to 78% AND for a period of at least 5 years. With the streamline refi, we didn't have to pay the increased monthly PMI--ours stayed roughly the same. But you have to have a 5% decrease to your current payment in order to do it. So if your principal and interest + PMI is $1000, your new payment has to drop to $950 a month. This has some good info: portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/streamli
We went thru Quicken. They were awesome! I can PM you the name of the guy we used--he was very knowledgeable. Then they set up the closing with someone who can come to your work or home. We did a 3.375% 20 year loan in Nov 2012.
Thank you! Yes, it would be great if you could send that name. Did you have your original mortgage prior to June 2009? I will be really be excited if our PMI is the same, but I thought that was the grandfathered cut off for increases to PMI.
We did an FHA streamline refi. They use the appraised value of the house when you purchased it (they didn't even ask for a copy). Your mortgage had to have been assigned during a certain time frame to qualify though (I think its in the instructions you find in the link below). The bad part is that your PMI timeline resets. So before you had to pay your loan down to 78% LTV and PMI dropped off. Now you have to pay it down to 78% AND for a period of at least 5 years. With the streamline refi, we didn't have to pay the increased monthly PMI--ours stayed roughly the same. But you have to have a 5% decrease to your current payment in order to do it. So if your principal and interest + PMI is $1000, your new payment has to drop to $950 a month. This has some good info: portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/streamli
We went thru Quicken. They were awesome! I can PM you the name of the guy we used--he was very knowledgeable. Then they set up the closing with someone who can come to your work or home. We did a 3.375% 20 year loan in Nov 2012.
Thank you! Yes, it would be great if you could send that name. Did you have your original mortgage prior to June 2009? I will be really be excited if our PMI is the same, but I thought that was the grandfathered cut off for increases to PMI.
What were your fees like?
I pm'd you. Our original loan was from 2005, so we fell in the time period to keep it the same. I can't remember exactly how much we brought to closing for fees but it was less than 1K, then we had to fund our escrow account. Don't settle for the first rate or fees they give you though either--I asked for a lower rate because US Bank's fees were pretty much the same (even though US Bank's service sucked a$$) and they gave it to me with no change to the fees. It sucks having to pay PMI for 5 years again, but we still save 10s of thousands in interest.
500 a month. We used Wells Fargo, where our loan was already at, but it took 4 months. I would NOT recommend them for that reason.
I just did mine weekend before xmas and they told me it would take 90 days to close. I closed in less than 30 with Wells Fargo on a FHA Streamline refi so it must depend on the city, area, state or something. And yes were already with them prior to the refi.