FHA Streamline Help

[Anonymous]

I'm in an FHA loan (30 years at 5.375%)

 I'm currently applying for refinance loans to move to a 15 year mortgage and lower my rate. I used google and myfico to solicit some offers. Quicken offered me

a loan that is much better than anything offered by the other lenders. It is the only FHA streamline loan I've been offered: 4.25% with no closing costs and no hike in the principle except unpaid interest and the difference between my MIP refund and the new MIP fee. I'm told (in writing) that all I would need is to top up my escrow account and cover unexpected circumstances like a cloud on my title. And they'll provide a $1,000 credit towards anything I'd need at closing. At most I'd need to bring $1,000 or so to the table.

My income is fine, I don't have much equity (about 7%) the home was purchased in 2009 on an FHA loan, and my credit score is solid, if not spectacular (703). 

The other non-streamline offers involve me paying 4.375 a higher rate and 6-7,000 in closing costs and escrow, or 4% with even more closing costs. 

I understand that "no closing costs" really means that my interest is higher than it would be otherwise. But its still lower than some other lenders, and one prospective lender has been very insistent that this deal is too good to be true - and that the streamline  lender (Quicken) has a history of bait and switch tactics. I'll pay my $400 and suddenly their offer will change or I'll be hit with the unrevealed fee.

Does Quicken's offer seem so unreasonable to you? Do I seem like I'm missing something? I have the offer I mentioned in writing, and I've requested a GFE.

 Thanks!

Joe

[Anonymous]

And just to include the info requested in Shane's stickied post in case its useful:

Credit scores are 703, 703, 675. Negatives are revolving balance, number of open accounts, and length of time they've been open. My income (we're not including my wife in the loans) is $155,000 - of which 135000 is salary, 10,000 is mineral royalties and 10,000 is my annual bonus. I have about $14,000 in revolving debt and 90,000 in school loans, and 15,000 on a car. I've practiced as an attorney at the same firm for 3 years now. Don't have a ton of reserves unless we count my 401(k) - I've been focusing on paying down debt. I can have $3,500-4000 on hand fairly easily for closing, but I'd need to wait if I needed more. 

I'm in 44147, the house is detached in the suburbs on a 2 acre lot, but a little dated. Loan is 183,000 (bought it for 195, with a 191 loan)