FHA STREAMLINE DECISION HELP?

We are currently on a mortgage under FHA and our current FHA loan amount is at 2,000 right now with 6.5%. We consulted a specialist to help us do the FHA streamline and she told us that she can bring it down to 5% or lower but when we recalculated how much our new loan amount will be it came up to 9,000. How did it come to this? The bank that handles our mortgage gave us a payoff amount that totaled from 2,000 to 7,000 adding interest for two months, FHA premium etc. then we add about 5,000 in closing costs and another 7,000 for mortgage insurance premium. Is this Streamline worth it? We only reduce about 0 in our monthly payment by doing this. I appreciate all your insights. Thanks
Thanks for your quick responses. We're not looking to leave the house anytime soon.

Life of the loan is still 30 years. We started FHA about 7 months ago so basically we're going back to 30 years again.
Thanks again. I'm sure we didn't pay anything to the FHA specialist except the closing costs.

What is the re-issue rate on the title work?

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Tags: 7 months, closing costs, fha loan, FHA Mortgage Insurance Premium, insights, insurance, mortgage insurance premium, t pay

This entry was posted on Sunday, June 7th, 2009 at 3:24 am and is filed under FHA Mortgage Insurance Premium. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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One Response to “FHA STREAMLINE DECISION HELP?”

Expert Realtor says:

June 7, 2009 at 3:24 am

I sure hope you didn't pay this "FHA specialist" anything extra…because any bank that does FHA loans can do an FHA streamline.

It's a scam if they tried to tell you that you could get a "better deal" with them.

It came out to $419K because of the closing costs and the re-setting of escrow…but your monthly payments should be lower.

You are also re-starting your mortgage….but 7 months ago is not significant.

The way you figure out if it's "worth it" is this:

1. Take the total closing costs associated with the NEW mortgage (do not include set ups for per diem interest, taxes, or insurance…these are not closing costs, they are prepaids).

2. Divide that figure by your MONTHLY savings (again, take out MIP, taxes, insurance).

If that figure is higher than 36, then you can get a better deal elsewhere.

Keep in mind that you'll be getting back a partial MIP refund from where you did your first loan.

Be sure you get the re-issue rate on the title work.

Tags: 7 months, closing costs, fha loan, insights, insurance, mortgage insurance premium, t pay,

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