Need LO input, Shane, Dallas...still lv for me?

[MichiganMommy]

Hello all!

I continue to lurk on the forum although I closed on my new home in August 08. Great to spend first holidays in new home with family and friends. As I lurk I see so many people, Shane, Dallas, and others continue to help others secure their dream of homeownership. Kudos to all....

I have a question, I received a letter from Mountain State Mortgage. My loan is currently with Pulte Mortgage. I am sure they will sell me soon....The letter states that the following:

Our records indicate you are eligible for the FHA streamline program. It promises that it is available to all homeowners with an FHA insured home....no lender cost, no out of pocket cost, no appraisal, no requalification, no credit scores, no income verification.

The streamline program will allow me to skip one month payment and could potentially save me over $30,000 over the life of my loan....THAT IS WHAT GOT ME INTERESTED.

What is this??? It promises to lower my PMI. Is this a SCAM????

Please advise and HAPPY NEW YEAR!!!!

[BrianB_The_Loan_Professor]

It is not at all a scam but it is just a marketing item. There is not way if you just bought that you can do a no out of pocket. Your max new loan is based off of the original loan amount and unless you paid down a bunch you will have to cover the closing costs some how. There are costs on a streamline just like any refinance. Banks are not pricing enough yield to cover the difference so the broker cannot make up for it out of the rate.

Call them and see but dont be surprised when you find out there are costs.

Brian

[DallasLoanGuy]

http://activerain.com/blogsview/845675/FHA-Streamline-Refinance-Mortgage-Loan

Any loan officer can offer you this.

What is your rate?

[DallasLoanGuy]

oh...the link is to a blog article i wrote that explains this loan.