FHA streamline refinance?

[2000 vert]

I want to refi my house. I tried to last summer, but the appraisal came in 30k under what I owed on house due to a few forclosers in the neighborhood. I have been getting stuff In the mail about the fha streamline. No appraisal needed. Just wondering if anybody on the board has done one of these and how it worked out.

[Pro88LX]

I want to refi my house. I tried to last summer, but the appraisal came in 30k under what I owed on house due to a few forclosers in the neighborhood. I have been getting stuff In the mail about the fha streamline. No appraisal needed. Just wondering if anybody on the board has done one of these and how it worked out.

We do them at my work. Im not a government underwriter, so i don't know exactly what the guidelines are, but i think if you havent had a late payment and you have a pulse youre good to go.

[Vertnut]

Years ago (15?) I did one and we walked in and signed a page or two and it was done. No docs...no nothing. I do think it was a fresh 30-year note, though.

[SVT Lurch]

To my knowledge the only way to do it without an appraisal is to go back through your current servicer.

Also, just FYI, unless you closed before May 2009 you don't get a break on MI and the new FHA stuff is expensive (and it never comes off if your LTV is > 90%), so you might be better off where you are (with lower mortgage insurance and a higher rate).

They do start with a fresh term.

[2000 vert]

Thanks for responses. The possible increase in mip is one of my concerns. Guess I need to call a company and see what happens. Right now I'm just looking to save some cash each month with a lower payment untill my current situation changes.

[AdamLX]

To my knowledge the only way to do it without an appraisal is to go back through your current servicer.

Also, just FYI, unless you closed before May 2009 you don't get a break on MI and the new FHA stuff is expensive (and it never comes off if your LTV is > 90%), so you might be better off where you are (with lower mortgage insurance and a higher rate).

They do start with a fresh term.

Bingo.

Stay with same servicer to avoid appraisal.
Closed before 5/2009 and your UFMIP is .01% of your balance instead of 1.75%. You keep your same MI payment amount
640 min FICO (our guideline)
5% net benefit to payment (lowered by 5%)
No mortgage lates in 12 months
Must bring any fees and escrow amount to closing

If you closed after 5/2009 then you'd need over 6% on your current rate in order to actaully see a monthly savings where rates are today because your monthly mortgage insurance is going to double.

[Vertnut]

Thanks for responses. The possible increase in mip is one of my concerns. Guess I need to call a company and see what happens. Right now I'm just looking to save some cash each month with a lower payment untill my current situation changes.

They did recently change the entire MIP format.

[2000 vert]

Bingo.

Stay with same servicer to avoid appraisal.
Closed before 5/2009 and your UFMIP is .01% of your balance instead of 1.75%. You keep your same MI payment amount
640 min FICO (our guideline)
5% net benefit to payment (lowered by 5%)
No mortgage lates in 12 months
Must bring any fees and escrow amount to closing

If you closed after 5/2009 then you'd need over 6% on your current rate in order to actaully see a monthly savings where rates are today because your monthly mortgage insurance is going to double.

That's what I was afraid of. I closed in oct 09 and there is only a 2% difference in rates.

[AdamLX]

That's what I was afraid of. I closed in oct 09 and there is only a 2% difference in rates.

Have your lender run the numbers on your exact balance. It won't be a huge savings, but it may be worth it depending on your own situation.

[2000 vert]

Have your lender run the numbers on your exact balance. It won't be a huge savings, but it may be worth it depending on your own situation.

Thanks for the info. Ill give them a call and see what happens.

[Cam_Stang]

I did this about a year ago due to divorce and the house would not appraise high enough. I was supprised how easy it was. (Wells Fargo) Dropped payment $200 and got the X's name off it.

[Trick Pony]

I just did one with my current lender, Chase. 3.375% fixed 30-yr. No points, no fees, no closing costs, no appraisal, nothing tacked onto the principal, etc.
All I had to provide was homeowners insurance declaration page, 2 months bank statements, and approval to run my credit.

[turboskull1]

Seems every mortgage broker I talked to tried to point out a bunch of false negatives about a streamline refi , if they can't make their usual cut it's a bad deal all of a sudden. I used FedTrust Mortgage, no appraisal, very minimal amount of paperwork, and there were no fees paid by me, all fees were paid by the lender. I got a 3.5% rate on a 25 year note,and the term was actually shortened by about 6 months as I was almost 5 years in to a 30 year note. I'm impressed with how easy and quick it was.

[SVT Lurch]

, if they can't make their usual cut it's a bad deal all of a sudden.

All loan officers are paid the same now, regardless of loan type. Part of the Dodd Frank mess. It can vary as a percentage, salary, hourly, etc. by company, but the loan type cannot play a part in compensation.

The true FHA streamline is a fantastic product (like Trick Pony described). The problem is that so few people qualify that it's useless 99% of the time.

You also have to compare apples to apples when shopping and not a 0+0 quote (like I provided) to one that covers closing costs.

[turboskull1]

All loan officers are paid the same now, regardless of loan type. Part of the Dodd Frank mess. It can vary as a percentage, salary, hourly, etc. by company, but the loan type cannot play a part in compensation.

The true FHA streamline is a fantastic product (like Trick Pony described). The problem is that so few people qualify that it's useless 99% of the time.

You also have to compare apples to apples when shopping and not a 0+0 quote (like I provided) to one that covers closing costs.

Well you are one of the very few I talked to that I felt was honest, if I'd of known you offered/handled streamlines I'd of used you.