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Streamline Refinancing on an FHA loan?

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Valued Contributor

Streamline Refinancing on an FHA loan?

Anyone out there an expert on "Streamline" refinancing an FHA loan?  I've heard a lot about the programs and want to know if I qualify.

 

I found this: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/streamli

 

We are just over two years into a 30 year fixed at 4.5%, and would love to shave some points or even eliminate the MIP.  Has anyone here done this, and what did you have to do to qualify?

 

 

Message 1 of 6
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Valued Member

Re: Streamline Refinancing on an FHA loan?

I believe one of the requirements is to reduce your payment by at least 5%. You have a great rate at 4.5 so that may be hard to do at todays rates....  I believe someone told me you can't use it to rid yourself of MIP unless you have 22% equity and choose a 15 year FHA.

Message 2 of 6
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Senior Contributor

Re: Streamline Refinancing on an FHA loan?


@NCHopeful wrote:

I believe one of the requirements is to reduce your payment by at least 5%. You have a great rate at 4.5 so that may be hard to do at todays rates....  I believe someone told me you can't use it to rid yourself of MIP unless you have 22% equity and choose a 15 year FHA.



not to highjack this thread but I am 2 years and 6 months into a FHA at 5.5% fixed, is there any calculaters that say where you can calculate payment savings?

Message 3 of 6
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Valued Contributor

Re: Streamline Refinancing on an FHA loan?


@john398 wrote:

@NCHopeful wrote:

I believe one of the requirements is to reduce your payment by at least 5%. You have a great rate at 4.5 so that may be hard to do at todays rates....  I believe someone told me you can't use it to rid yourself of MIP unless you have 22% equity and choose a 15 year FHA.



not to highjack this thread but I am 2 years and 6 months into a FHA at 5.5% fixed, is there any calculaters that say where you can calculate payment savings?


The problem is the MIP - insurance rates are up so you need a significant rate savings in order to see any lower payment.  Your Loan Officer can run those numbers for you, and should do it for free.

Message 4 of 6
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Senior Contributor

Re: Streamline Refinancing on an FHA loan?


@p- wrote:

@john398 wrote:

@NCHopeful wrote:

I believe one of the requirements is to reduce your payment by at least 5%. You have a great rate at 4.5 so that may be hard to do at todays rates....  I believe someone told me you can't use it to rid yourself of MIP unless you have 22% equity and choose a 15 year FHA.



not to highjack this thread but I am 2 years and 6 months into a FHA at 5.5% fixed, is there any calculaters that say where you can calculate payment savings?


The problem is the MIP - insurance rates are up so you need a significant rate savings in order to see any lower payment.  Your Loan Officer can run those numbers for you, and should do it for free.



Ok got ya, I may check with quicken

Message 5 of 6
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Super Contributor

Re: Streamline Refinancing on an FHA loan?

I do these all of the time.... 

 

If you are under the old MI plan then you might not want to refi. Doesn't hurt/cost to get a quote though. ;-)

 

You cannot eliminate MI anymore on the 15yr loan. That is old guidelines.

 

 

Retired Lender
Message 6 of 6
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