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Need to understand my options

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Anonymous
Not applicable

Need to understand my options

Hello,

 

I'm just trying to understand my options, whenever I see something that might potentially help us out, I find out I don't qualify.

 

Got our Home/loan in August of 2009,  It is a FHA loan through Bank of America,  it is not Fannie Mae or Freddie Mac.

 

My understanding I am not eligble for the following

 

Can't do HARP:  Not Fannie or Freddie

Can't do FHA refi Streamline:  Did not lock down loan before June 2009

Can't do principal reduction through BOA:  Making payments on Time, Have a FHA

can't Do a refi:   No equity (Less than 5% or underwater)

Can't do a Loan modification:  Make a little too much

 

Any ideas where I can go/look next?

 

Bought home in August 2009,  Appraised Value 265k,  Bought at 235k,  Put 25k down so took out a loan for 210k 5.25 rate on 30 year fixed

 

July of 2012:  Tax appraised value of 199k,  Estimates between 210-225k, No Appraisal yet.  202k on the loan

 

In a perfect world I would be able to refi at hopefully 4% or lower, I have never missed a payment in 3 years or late.

 

 

Message 1 of 8
7 REPLIES 7
cdtotten
Established Contributor

Re: Need to understand my options

You can do an FHA streamline refi if you want to. Monthly MIP may be higher than what your original loan was depending on when you bought the home, but the cost should be easily offset by the change in interest rate.




Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


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Message 2 of 8
Anonymous
Not applicable

Re: Need to understand my options

I thought I had read that the shut off date for the streamline refi was June 1st 2009.  I purchased after this point.

Message 3 of 8
ceejx
Established Contributor

Re: Need to understand my options


@cdtotten wrote:

You can do an FHA streamline refi if you want to. Monthly MIP may be higher than what your original loan was depending on when you bought the home, but the cost should be easily offset by the change in interest rate.




That appears to just have to do with how your mortgage insurance premium (MIP) is handled... this site only mentions that date in regards to which MIP class you're placed in:

 

http://themortgagereports.com/1604/fha-streamline-refinance-mip-refund

Message 4 of 8
cdtotten
Established Contributor

Re: Need to understand my options

There is no "shut off date" for FHA streamline refis... you can do one anytime. There were changes in the MIP cost for loans originated before a certain date. You can still refi though. This is your best option.


Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


Take the FICO Fitness Challenge
Message 5 of 8
Anonymous
Not applicable

Re: Need to understand my options

Could you point me to some resources?  I have not seen anything, I have seen articles about the FHA streamline, but I saw cutoff dates?

Message 6 of 8
ceejx
Established Contributor

Re: Need to understand my options


@Anonymous wrote:

Could you point me to some resources?  I have not seen anything, I have seen articles about the FHA streamline, but I saw cutoff dates?


I posted a link in my first reply that explains the "cutoff dates" and how it refers to the mortgage insurance payments only

Message 7 of 8
Anonymous
Not applicable

Re: Need to understand my options

Just wanted to update on my situation.

 

You guys here definitely helped me on my way.

 

Originally I looked at the streamline refi, even though the PMI was going to be high.

 

Started the loan process at the end of october with Landover mortgage,  My lender told me that he thought a conventional refi might be a better fit depending on the loan to value amount of  an appraisal.


I thought my value of appraisal was only going to be 205-215.  Got the word back in early November that it was 255k!  More than 30K more than zillow.  In fact the appraiser's value was so high that they had to do a desk level review, and it came back with 230k.   Then my appraiser rebutted it based on his information with 250k and the reviewer agreed.

 

So in the end I signed my refi right before thanksgiving to start in Jan.  I went from 30 years at 5.25% to 30 years at 3.375 percent.  I'm saving over 300$ a month, and once my PMI is off (Which should be about 18 months or so), It will be more than 350$ savings a month.

 

Thank you so much for helping me start my journey! Smiley Happy

Message 8 of 8
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