FHA Loan looking to FHA Streamline Refinance

spyderr911 · Joined: 15 Apr 2009 Posts: 1 1.94 Dollars($)

A little background…

I bought my first home in Orlando FL 1 year ago this month (April 2008) for $220,000 with about 5% down; originally financing about about $212k. I have a 30-yr fixed FHA Loan (currently with Chase Mortgage – not owned by Freddie or Fannie from my research) at 6% with escrowed taxes and insurances. I owe about $209,000 on it currently.

Since I have a FHA loan and the current appraised value of the house is around $195,000 I am looking at a FHA streamline refinance to save some money. I have good credit, nothing has changed with my income/employment, and a perfect mortgage payment history; no late or missed payments.

I am looking to save some money and reduce my payments. I called Chase since they are my current lender and asked about the FHA streamline refi option. They told me I could get 5.0% rate, 5.08% APR, and with some fees; $750 app fee, $550 processing, etc. They went on to say it would be approx $6600 in closing costs. There is obviously some point fees involved here. I told them it was too high and thanked them for their time.

I thought the streamline refi was not only easier to do but also cheaper for me? I asked about no out-of-pocket fees and they said they could only roll around 3k of the fees in to the mortgage; could not exceed the original financed amount of the loan. I don’t have much cash on hand and by definition am upside down on my mortgage (LTV due to the economy) but want to lower my payments.

Here are my real numbers:
Principle Balance: $209,753
Interest Rate: 6.0%
Principle and Interest: $1,271.86 (About $220 going towards principle; rest in interest)
Escrow Payment: $732.01 (Mortgage Ins, Homeowners Ins, Taxes)
Total Payment: $2,003.87

Escrow Shortage: $3,427.66
Mortgage payment if escrow shortage is paid by May 2009: $1,718.23

Now for the questions…

- What is the best bank for FHA streamline refi’s in terms of rates and low closing costs, fees? Can someone recommend a lender for me and my home in Orlando?
- Is there anyone on here that can give me their numbers on what they can do for me (rate, apr, orig fee, discount fee, junk fees, all other fees, total closing costs, out of pocket costs, est payment before escrow amount, breakeven time, and any other relevant info I have forgotten)? If not, where can I get real quotes and not “lending tree” paid for scams?
- Do any of the other refi, loan modification, or new obama plans work better for me and my situation? I heard of I heard he is trying to lower the rate to around 4%.

Please comment and give me advice on what I should do, where I should look, and perhaps questions to ask and what to look out for.

Thanks ahead of time.

jameshogg · Posted: Wed Apr 15, 2009 11:31 pm Post subject:

Hi spyderr,

The fees and closing costs may vary from lender to lender. I would suggest to speak to some other lenders and check out what type of rates and terms they are offering you. This will give you a fair idea about the present market situation and you will be able to judge whether you would be able to afford the loan or not.

You can contact the lenders of this community and seek a no obligation free mortgage quote from them. This will help you in getting a fair idea about the type of rates and terms you will receive.

Thanks

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