FHA Streamline, 3.5% Wells

[demi]

In the process (sign on Wednesday) of a FHA streamline, took two days for approval (with ok but not great credit, 1 late 15 months ago) 3.5%.  In in time for the old PMI rules.  Went from a 5.375% adjustable  to 3.5% fixed....saving almost $400 a month, $253,000. left on my mortgage. Great Mortgage Broker, did a Wells to Wells...perhaps could have gone a tiny bit lower if we had gone to others, but in all honesty, the less stress in my life right now, its worth a few bucks a month. 

Was very lucky, had not been paying much attention to the site lately, did not know about the new PMI rules, just happened to call my friend in the nick of time.

What will I do with the extra $400, pay off bills!

[Anonymous]

Did you use Wells Fargo. I've heard good and bad things about them.

[gramps1968]

Is this with no out of pocket expenses Demi? Or are you putting money down?

[demi]

Don't know exact $ yet, assured less than $200.00. Everything else covered. Mortgage broker is a friend from Protagonist. If I had gone to something other than Wells, would have needed an appraisal. All my dealings with Wells have been great, from the original Mortgage process to this streamline.

[Anonymous]

Congrats!

I did my streamline FHA refi WF to WF in February.  It was easy peasy.  Just had to show proof of imcome, paid nothing, received a check after everything was recorded.  Just made my first payment yesterday.  Unfortunately, my int is 3.75 and yes the MIP was almost double what I was paying before.  My plan in to continue paying what I was before with the differnce going directly to the principal. The only thing I didn't like is my score took a major hit bc WF showed the mortgage as closed. Even though it stated paid, closed, paid satisfactorily $0 never late, it dropped my score.  I'm still waiting for WF to report the new mort.

[gramps1968]

Oh ok, the reason I asked is Wells Fargo was going to do a streamline on my mortgage, but the rate was going to be 4.5 instead of 3.5 They said it was 1% higher since it was no money out of pocket, no home inspection, etc.

[Anonymous]

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@gramps1968 wrote:

Oh ok, the reason I asked is Wells Fargo was going to do a streamline on my mortgage, but the rate was going to be 4.5 instead of 3.5 They said it was 1% higher since it was no money out of pocket, no home inspection, etc.

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Is the curr mort with WF?  I used the original LO, was told I could pay the fees, like the origination fees, recording fees, etc upfront or have it rolled in to the refi.  I went with the latter.  He mentioned no inspection, credit check, etc as pros to doing a regular refi.  I went with the 30yr int rate and called it a day. Maybe get a second opinion...

[demi]

Fortunately, I am in the PMI window before 2009, so it shouldn't go up, or a very minor amount if it does (will find out tomorrow).  I do wonder about the hit to my credit, will see what happens.  Once its reported it should help, but don't know how much. 

Overall, it will help my credit, because hopefully now I can really pay down some accounts.

[Anonymous]

I did my streamline in Sept of last year. Went from 6.75% fixed to 3.626% fixed. My MIP rate stayed the same as I grandfathered in having origniated my mortage prior to June2009. I'm basically using the extra saved money to make double payments every month, as in paying an equal amount towards principle as what my entire mortage payment is. Not sure on the exact date, but I'll have my mortgage paid off in less than 10 years. And even if for whatever reason I decide to sell before payoff, its just more equity I'll have selling that house.

[demi]

Gramps, a couple of years ago I contacted Wells Fargo, same guy who did my original mortgage...it was going to be about 10,000 to do a streamline.   Thats why I waited so long.  Try a independent mortgage person.  Or, Wells may have changed.