BIG FHA Streamline Refi news (for FHA loans prior to June 1, 2009).

Thanks. I actually found you here, by that thread.

Just sucks. I pay my mortgage - and cannot qualify for harp etc. Freddie has me not wells, and I got my loan 6 weeks late for streamline.

Complete refi is annoying.

Thanks!

Many times a straight refi may not be as bad as you think; especially if you are a W-2 employee.
Rates are excellent and documentation is usually not that much more. The biggest hassle for most is current turn times. I am admittedly biased, but an experienced and knowledgable broker should make it a smooth process and cut the turn times of the big banks in half (or better)..

-Adam
Old Hippy & Mortgage Pro

This sucks. I just decided to pull the trigger on an FHA streamline refinance. I closed on my house in May of 2009. I just called my lender to inquire, and he looked at my account and told me that my endorsement date wasn't until June 26, 2009.

He also informed me that if I went forward with the streamline refi, that my pmi would double, essentially negating any gains I would get from a lower rate. Does this sound right? He also said to keep checking back with them because they're expecting the endorsement date to get moved up.

Quote from lharrell79 : This sucks. I just decided to pull the trigger on an FHA streamline refinance. I closed on my house in May of 2009. I just called my lender to inquire, and he looked at my account and told me that my endorsement date wasn't until June 26, 2009. He also informed me that if I went forward with the streamline refi, that my pmi would double, essentially negating any gains I would get from a lower rate. Does this sound right? He also said to keep checking back with them because they're expecting the endorsement date to get moved up.

You are not alone. Just today I had a client who closed in April 2009 find out his loan was not endorsed until June as well. As far as any dates being moved keep in mind that this is a relatively new program and government guidelines take a VERY long time to change.

Depending on your current rate, loan amount and State you are in makes a big difference as to whether it would still be beneficial. While the monthly MI is approx. double, some wih much higher rates are still finding benefits as FHA rates are low and provide sizable lender credits to cover closing costs.

-Adam
Old Hippy & Mortgage Pro

Quote from tiedyed1 : You are not alone. Just today I had a client who closed in April 2009 find out his loan was not endorsed until June as well. As far as any dates being moved keep in mind that this is a relatively new program and government guidelines take a VERY long time to change. Depending on your current rate, loan amount and State you are in makes a big difference as to whether it would still be beneficial. While the monthly MI is approx. double, some wih much higher rates are still finding benefits as FHA rates are low and provide sizable lender credits to cover closing costs. -Adam Old Hippy & Mortgage Pro

PMed you some questions. Thanks for your contributions in this thread.

FHA rates have improved in the past week and I felt it appropriate to update this thread.
Rates are as low as 3.25% and the rate of 3.50% now provides a lenders credit to cover all costs in most situations.

-Adam
Old Hippy & Mortgage Pro

Quote from lharrell79 : This sucks. I just decided to pull the trigger on an FHA streamline refinance. I closed on my house in May of 2009. I just called my lender to inquire, and he looked at my account and told me that my endorsement date wasn't until June 26, 2009. He also informed me that if I went forward with the streamline refi, that my pmi would double, essentially negating any gains I would get from a lower rate. Does this sound right? He also said to keep checking back with them because they're expecting the endorsement date to get moved up.

Would love to find more info about this in writing somewhere.

Quote from tiedyed1 : FHA rates have improved in the past week and I felt it appropriate to update this thread. Rates are as low as 3.25% and the rate of 3.50% now provides a lenders credit to cover all costs in most situations. -Adam Old Hippy & Mortgage Pro

What do you mean by covering all costs?

Quote from tomurphjr : Would love to find more info about this in writing somewhere.

Tom,
In addition to HUD lenders having access to the FHA Connection online, if you have a FHA loan you can contact HUD directly at the FHA Resource Center
Phone: (800) CALL-FHA (800) 225-5342 For general questions from industry partners or consumers.

In addition, in respect to the MI rates for loans endorsed prior to June 2009, that is outlined in HUD Mortgagee Letter 12-04. If you cannot find it online I can e-mail it to you if interested.

-Adam
Old Hippy & Mortgage Pro

Quote from RammsteinNicCag : What do you mean by covering all costs?

The closing costs associated with the loan. These can usually be covered by a lender credit depending on the rate chosen. Higher rate would provide larger credit, lower rate lower credit. Costs vary greatly, depending on the State and loan amount as each State has different costs.

Customary closing costs for a FHA Streamline would include a Lender Underwriting Fee, Settlement Fee, Lenders Title Insurance, some miscellaneous Title charges and a Recording Fee, etc..

As the lender credit is a percentage of the loan amount, a smaller loan amount would be looking at a higher rate to cover these costs, while a larger loan amount may be able to get the same dollar amount with a lower rate.

-Adam
Old Hippy & Mortgage Pro

I am pleasantly surprised to update this thread after my post a week ago and share that 3.25% is a very viable rate for a FHA Streamline with a decent credit to cover most if not all costs, depending on the loan amount and State.

-Adam
Old Hippy & Mortgage Pro

Quote from lharrell79 : He also informed me that if I went forward with the streamline refi, that my pmi would double, essentially negating any gains I would get from a lower rate. Does this sound right? He also said to keep checking back with them because they're expecting the endorsement date to get moved up.

Thats exactly why I havent done a streamline. Tiedyed actually ran the numbers for me before and I'd only save maybe $40.

But if they actually move the endorsement date gets moved up. Im in!

Quote from is_250 : Thats exactly why I havent done a streamline. Tiedyed actually ran the numbers for me before and I'd only save maybe $40. But if they actually move the endorsement date gets moved up. Im in!

This is exactly my issue, endorsed towards the end of June. I'm currently at 4.875%, so I wonder if it still might be worth it to refi....maybe even into a 15yr. Guess I need to call someone and have them run some numbers.

I want to give a BIG thanks to Tiedyed1!!! He ran some numbers for me to see what my mortgage payment would be if I refied my FHA loan at the current rate. The thing is, he doesn't have a license to service my state (Virgina). So basically he spent his time helping me, knowning that he would not be able to service my refi (aka make any $$$). Tiedyed1, you are a standup guy and thanks for your time!