FHA Streamline/CLOSING COSTS??

[Koffee]

Hi all!!!

I received a call from my mortgage company advising me to streamline. Here are the costs:

- $50.00 application fee

- $250.00 to lock in at 6% today. (Right now we're at 7%)

- $3000.00 - $3500.00 closing costs to be wrapped into the loan.

- I was told that my mortgage payments would decrease by $115.00 per month

Is this a good deal?  

[Anonymous]

Hi Koffee,

You should be able to do better than 6%.

Lowest rate I've seen for an FHA Streamline is

5% fixed for 30 years. You''d save even more

money per month and it wouldn't take you nearly

as long to break even on closing costs.

And yes, it's typical for FHA lenders to roll the costs

into the loan, provided you have enough equity to do so.

I'm sure others in the room will chime in as well. But I'd

shop around a bit. Rates are pretty competitive....

CanDo

"The right attitude is everything"

[ShanetheMortgageMan]

Like any mortgage offer... get a good faith estimate...

[Anonymous]

+1 

It's also important to point out that any FHA-approved lender

is authorized to do an FHA Streamline. So don't feel obligated

to go thru your original mortgage company. That's what they are

counting on, and it's probably why they contacted you so quickly...

Shop around and do your homework. 

CanDo

"The right attitude is everything"

[Anonymous]

As a former loan officer, they want to get you refinanced before someone else does it. Loan officers set the rate they offer you. I all has to do with how much money they want to make. That is why one place will give you 5% one 5.5% etc. They make more i you accept a higher rate. Same with the closing costs, the origination fee is negotiable and so are points. Of course, they are entitled to have some profit, but you can usually get a better rate and fees. Be aware tho, that anyboby can tell you anything to get you in the door!!! Then once you have signed papers, they start to jack up the rate and have excuses why---they blame your credit, your income, the market... Don't count on the costs being the same at closing as on the good faith estmate!! Their is nothing that obligates the lender to those numbers! They often raise fees and rates close to closing and come up with some excuse like your score went down or some other excuse. Truth is they know if you are hungey to close, they can milk you for some more  money--as in a higher rate. If rates are going up in the marketplace, there is incentive to get it closed before you lose the rate! Then often they say they are locking the rate but are gambling it will go down and then they lock later and take the higher prifit, however if the rates go up, they tell you some story why it has to be more. I am surprised that industry isn't held more accountable. I was glad to get out of all the lying and deceit. Why do they do this? To keep their jobs! They have quotas every month! It is ok if some fall thru, because they did get their 6 applications for the month so they can keep their job. They work on commission -only and the boss wants to keep producers in the office

[Koffee]

I just received a call back offering me 5.5%.  I think I'm going to lock it......and ask for that GFE

[DallasLoanGuy]

---

@Anonymous wrote:
As a former loan officer, they want to get you refinanced before someone else does it. Loan officers set the rate they offer you. I all has to do with how much money they want to make. That is why one place will give you 5% one 5.5% etc. They make more i you accept a higher rate. Same with the closing costs, the origination fee is negotiable and so are points. Of course, they are entitled to have some profit, but you can usually get a better rate and fees. Be aware tho, that anyboby can tell you anything to get you in the door!!! Then once you have signed papers, they start to jack up the rate and have excuses why---they blame your credit, your income, the market... Don't count on the costs being the same at closing as on the good faith estmate!! Their is nothing that obligates the lender to those numbers! They often raise fees and rates close to closing and come up with some excuse like your score went down or some other excuse. Truth is they know if you are hungey to close, they can milk you for some more  money--as in a higher rate. If rates are going up in the marketplace, there is incentive to get it closed before you lose the rate! Then often they say they are locking the rate but are gambling it will go down and then they lock later and take the higher prifit, however if the rates go up, they tell you some story why it has to be more. I am surprised that industry isn't held more accountable. I was glad to get out of all the lying and deceit. Why do they do this? To keep their jobs! They have quotas every month! It is ok if some fall thru, because they did get their 6 applications for the month so they can keep their job. They work on commission -only and the boss wants to keep producers in the office

---

maybe where you worked. and shops just like it.

however, there are professionals who take pride in their career and the gfe will be VERY accurate and no new fees will pop up.