Rental Property Investor · El Paso, TX · Member since 2017 · 12 posts · 3 votes
Hello i was contacted by my lender and was offered a streamline refinance. I agreed because the lender had said that the loan would only go up a couple of hundred dollars.
I received my documents to sign and the entire refinacing would cost over 8k. I would save half a point from a 5.0 to a 4.5. My loan would go up $4300 i need to bring $2600 to the closing. All this to save 80 dollars a month. I bought the property exactly a year ago at $247,450, i owe $242000, if i take the streamline my loan would go back to $246,500. This is my primary residence...i pay 171 dollars on MIP for the life of the loan. Should i wait and try to refinance to a conventional loan in the near future to remove the MIP instead. I see that it would take me over 5 years for me to start seeing the savings if i agree to the streamline.
The whole point of an FHA streamline is to avoid most of the "junk" fees and closing costs. It's been years since I've personally done one, but the point is to avoid many fees and "streamline" into a new, lower cost loan. I would question the loan originator and if they can't get the fees back down to no more than about $500 (in my opinion) I'd pass. I would also check other lenders. Sounds like a bit of a bait and switch type of loan.
Without seeing the loan docs, and just your post above, if I were in your shoes, knowing absolutely nothing about you and your goals, that's a HARD PASS for me.
Hello Zack. Thank you for your previous comment to my refinance question. This is the new offer from my lender.
Loan balance 244,366. He claims my payoff amount is 246,900. Th new loan will be 248,500. I purchased the property on feb 2018. I would reset to 30 years. Old payment 2,146 new payment will be 2,140. I need to bring 2,600 to the closing. Apparently i was about 2,800 dlls short on my escrow and my payment was about to increase to 2,455 the first year to catch up and will stay at 2,255 after that. I'm at 5.0 right now and was offered a 4.5. Should i do it. Any assistance would be appreciated. Thank you.
Why is your payoff so high? That doesn't sound right. Are you skipping 1 or 2 payments? Still some red flags and not adding up to me. Also it depends on your goals for this property. Are you house hacking? Forever house? Too many variables for me to say yes or no based on your post. And this is going up more than a hundred dollars like they told you based on your first post. BIG RED FLAG.
You should check with another loan officer for a second opinion. Someone that's referred to you. Not off a flyer or your current lender trying to make more money off you. Someone who has worked with a friend, family member, coworker, etc that they rave about and is looking out for your best interests and not their paycheck. If you need someone like that in TX, shoot me a message.
Thank you Zack your reply helped me with my decision. I'm going to wait and just refinance on a conventional loan instead as soon as i get near the 80% balance. I need to remove my MI.