FHA Streamline Refinance

FHA loan refinance to lower interest FHA loan.
  • No Appraisal Required*
  • No Income Verification*
  • No Employment Qualifying*
  • No Assets Verification*
  • No Credit Qualifying*
  • No Debt Ratios
  • No Seasoning Required*
  • No Face to Face Application
* These items changed since Nov 17, 2009

VA Streamline Refinance

VA loan refinance to lower interest VA loan.
  • No Appraisal Required
  • No Income Verification
  • No Assets Verification
  • No Credit Qualifying
  • No Debt Ratios
  • No Seasoning Required
  • No Face to Face Application

FHA 203K Streamline Loan

Simplified (Streamlined) version of FHA 203K loan. It is "light" rehab loan (up to $35,000) under FHA guidelines perfect for most light fixers and upgrades. Owner occupied properties only. When combined with FHA purchase loan can be used for "fixer" purchases.
  • Can exceed the purchase price
  • Can be adjustable or fixed rate
  • Owner can do some of the work himself
  • Up to 6 months to complete work

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Have a quick Question?
 

Aug
06

Is it worth it to do a FHA Streamline Refinance when my current rate is 6.375%?

By
fha streamline


I purchased my home about 2 years ago and I have an FHA loan with 6.375% rate. I’m wondering if it is worth it to do a Streamline refinance at a lower rate. I might be able to get a percentage point lower, but I doubt rates are going to go too much lower than that? What do you think?

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Categories : Q&A

3 Comments

1
jlf
August 8th, 2009 at 7:26 am

Ask your lender what the cost of the refi will be and what the anticipated new payment will be. Then you have to consider how long it will take to recover the refi costs.

2
roderick_young
August 10th, 2009 at 2:04 am

One point lower means about $1000 savings a year per $100,000 of mortgage. You then need to compare that with costs for refinancing, including your trouble, if that’s worth anything.

Example: suppose I have a $150,000 loan, and can save 1% on the interest, or $1500 a year. But with points, title, and the other miscellaneous fees, I would have to pay $4500 to refinance. I’d make the costs back in 3 years, after which it would be a good deal.

And if I thought rates were never going lower, then I’d either refinance now, or expect to never do it.

3
Glenn S
August 11th, 2009 at 6:31 am

First question….how long are you going to be living in this home? Right now you can get about a 4.85% FHA streamline loan for about 1.5 points total. If you are planning to be in the property for two or more years it would be a wise decision.

I would check out Quicken Loans. My son is in process of doing a refi with them. They are the largest FHA streamline refi lender in the country….and they are a “direct lender”. Otherword everything is done in house. Also, there is not any of pocket expense. Just google them and call their 800 number. My son had all his paperwork in 24 hours.

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