I got an email on Friday from my mortgage broker that funded my last deal. We did an FHA loan for a duplex. He says there is a program called the FHA streamline refinance. He says no paperwork is required with exception of latest statement from the mortgage company. He states this will lower our interest rate into the 3% range (we are 5.5% right now!). He says there is no catch and it doesn't disqualify us from refinancing in the near future.
Has anyone had experience with this? I like the sounds of it but it sounds too good to be true!
Have him put together the estimated cost sheet for you. I have done a streamline refi and it was pretty easy but it still has fees associated with it. Make sure to calculate out how long it will take to hit your break-even when you take into consideration the fees associated with the loan. If this is a long term hold, a low interest rate is great. also concider the impact of the FHA PMI. Will you get credit or a refund for the upfront portion of you FHA PMI? Remember that you will probably want to refi as soon as you get to 75-78% LTV to eliminate the PMI as long as the rates have not gone up so much by then that it doesn't pencil out.
Thats the thing...I asked about cost and he said it costs NOTHING! I knew there had to be a catch...I asked him like 3 times if theres a catch and got no every time. Obviously if it goes through I have to sign some stuff and will be able to read through it before I go forward.
Hi Nicole, what happened with the FHA Streamline? Find out if there were any catches?
I'm also curious to know, I just received a letter in the mail and spoke to a rep. but before I agree to the program I want to do my due diligence.