FHA streamline refi.

[holycowe]

Purchased a house 8 mos ago under FHA with 3.5% down.
Rate 4.25%
PMI 1.35%

Doing streamline refi. now for 3.75% rate and 0.85% pim.

I'm wondering what will happen to my current escrow and upfront pim??? My LO said they'll apply those money to my new acct. (No cash back on streamline refi).
But on the new loan docs. They have another upfront pmi of $5k add up to all the fees and roll into the new loan.
I just wanna know what will happen to my previous upfront pim. Will sign in a few days

Thanks

[DueDilligence]

What were your credit scores at the time of laon approval?Also, by chance did you shop around with different lenders for interest rates before coming across that rate? Last but not least, would you say your PMI has more to do with your monthly mortgage payment cost than the actual rate?

[StartingOver10]

You will need to check with your LO for confirmation.

I understand that the process for a streamline refi on your existing FHA loan means that another 1.75% UFMIP will be charged to you at closing. This can be rolled up into your loan amount. Since you have closed within the last 36 months, you get a partial return of the premium you paid when you closed 8 months ago. You will have other normal closing costs for your refinance unless your lender is paying for those costs. The good news is you will recover quickly from the additional costs due to the lower interest rate and the lower monthly MIP.  Take advantage of this streamline loan. You can shop lenders for your streamline too.

[Peter1142]

I looked into doing a streamline refi in a similar scenario but it didn't make sense, the closing costs were too high. Plus I already had a 3.75% rate so I would be spending thousands of dollars at closing to save $50 a month. I decided to wait until I have 20% equity and get rid of the MI entirely... I'm already halfway there due to a low appraisal.

You will be charged a new UFMIP fee, just like last time. However, you will get a partial refund on the MI you already paid, not sure exactly when that happens. Probably in the range of 50-60%. Not enough for me...

Your escrow is of course your money and will be transfered to the new mortgage... you may be able to get a refund if there is an excess in there, or you may have to pay more if there is not enough in there, they will do a fresh analysis.

[holycowe]

Our credit were and still around 700 (chapter 7 closed just over 2 years ago)
No, I didn't shop around. A friend of mine did the loan and they won't know til they run our credit
I did it so I can save on both pim and .5% rate as well. A couple hundreds per month at least.
It looks like my ori. loan wasl about $288k 8 mos ago. Now after pim upfront $5k and the fees. Total new loan around 291k$ but NO cash back at all on streamline so, I don't know what will happen to my 1st time upfront pim
I think I should have shop for a better rate than 3.75%

[holycowe]

Just signed the docs yesterday. $290k 

30 years at 3.75%

0.85% pim

total about $1800/mo

used to be 4.25% rate and 1.35% pim. Paid $2000/mo

saving $200 each month. $100 for the pim reduction and only $100 for the lower rate?

i expected more saving on the lower rate. From 4.25% to 3.75% for $290k saving only $100/mo ??? Is it look right or not?

thanks 

[Anonymous]

The upfront mortgage insurance premium will be refunded to you on a prorated basis. The escrow from your current loan will either be refunded or appplied to your balance.