Posted: 6/4/2013 5:47:48 AM EDT
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I started at 5.5% on a 30 year fixed and did an FHA Streamline refi a couple of years ago and got down to 4.5%. I can probably get it under 3.5% nowadays, and so I am thinking about doing another refi. However, in about 5 minutes of research, I stumbled upon this:
All you will have to do is pay a couple hundred dollars and essentially the lender just lowers the interest rate. None of the loan terms, including the number of years left on your loan, should change. It's just about lowering the interest rate. http://www.chicagotribune.com/classified/realestate/sns-201211022000--tms--realestmctnig-a20121110-20121110,0,3441327.column On our first refi, we started a brand new loan. I recall it being called a streamline as well. The PMI started all over again, the 30 years started over, and we essentially started fresh with a better rate. The quote above has thrown me off quite a bit. Is there any truth to that at all? Is the Chicago Trubune full of shit? |
| depends who your lender is and if they're into that program. I just went through this with my mortgage. I was with gmac, which wasn't able to do anything in that program because of their bankruptcy, so I had to do the regular streamline refi. It still worked out better than sticking with the 6% i had before. If you can do the streamline rate drop, all the better. |
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Quoted:
depends who your lender is and if they're into that program. I just went through this with my mortgage. I was with gmac, which wasn't able to do anything in that program because of their bankruptcy, so I had to do the regular streamline refi. It still worked out better than sticking with the 6% i had before. If you can do the streamline rate drop, all the better. That's throwing me off though. Maybe I got bait/switched a couple of years ago...but I thought I did a streamline refi on my first refi. I had to start a whole new 30 year loan though. The only benefits were that there was no appraisal, no income verification, I believe there were no closgin costs either. I did get a partial refund on the up from PMI...but had to pay in for another up front PMI to start the new loan. So are you saying that I just call my lender and ask if they can do a streamline refi...and if so, all that happens is my rate drops? No new loan? |
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Quoted: I started at 5.5% on a 30 year fixed and did an FHA Streamline refi a couple of years ago and got down to 4.5%. I can probably get it under 3.5% nowadays, and so I am thinking about doing another refi. However, in about 5 minutes of research, I stumbled upon this: All you will have to do is pay a couple hundred dollars and essentially the lender just lowers the interest rate. None of the loan terms, including the number of years left on your loan, should change. It's just about lowering the interest rate. http://www.chicagotribune.com/classified/realestate/sns-201211022000--tms--realestmctnig-a20121110-20121110,0,3441327.column On our first refi, we started a brand new loan. I recall it being called a streamline as well. The PMI started all over again, the 30 years started over, and we essentially started fresh with a better rate. The quote above has thrown me off quite a bit. Is there any truth to that at all? Is the Chicago Trubune full of shit? Hey if you are interested in talking to someone about it, my brother-in-law does refi's and he will be completely honest with you. If you want his contact info let me know and I can send it to you in a PM. |
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Just be aware that the rules for PMI have changed drastically in the last month or so. We looked into it and yes, our rate would drop and our payment would have dropped significantly....until PMI was added back in. I am looking at this long term. a whole point off my interest should save me much more than some upfront PMI...or is the upfront PMI more than 1.75% nowadays? I would qualify for at least 40% refund on our previous upfront PMI...so I can't see more than $2000 being added to our loan...but the most important thing I want to get resolved is the part about not starting the loan all over again. Is that possible? Do they just take some cash from you...file some paperwork, and then lower your interest rate while maintaining your current loan? That's what the quote in the OP implied to me. I'll start by calling my mortgage holder to see if they can do exactly what I described, and then I'll branch out to some brokers. |
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Just be aware that the rules for PMI have changed drastically in the last month or so. We looked into it and yes, our rate would drop and our payment would have dropped significantly....until PMI was added back in. I am looking at this long term. a whole point off my interest should save me much more than some upfront PMI...or is the upfront PMI more than 1.75% nowadays? I would qualify for at least 40% refund on our previous upfront PMI...so I can't see more than $2000 being added to our loan...but the most important thing I want to get resolved is the part about not starting the loan all over again. Is that possible? Do they just take some cash from you...file some paperwork, and then lower your interest rate while maintaining your current loan? That's what the quote in the OP implied to me. I'll start by calling my mortgage holder to see if they can do exactly what I described, and then I'll branch out to some brokers. IIRC, I want to say that the PMI does NOT drop off after 5 years anymore and the rate doubled. I believe it is permanent now. Again, I don't remember all of the details. I was told, thought F this S, and that was the end of it!. |
| A year or two ago I looked at doing a refi, my PMI would have gone from ~110/ month to ~240/ month, which effectively kills the savings I'd get with a lower interest rate. Now I think you are forced into the PMI for a certain period of time instead of being able to get out of it once you have 20% equity. Screw that. |
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We're with Wells Fargo and did a refi with no money out of pocket. We paid .5% more on the rate, but we're not going to be here much longer anyway.
I think that if you refi with no money out of pocket, they work the fees into the loan or just charge a little higher rate. |
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A year or two ago I looked at doing a refi, my PMI would have gone from ~110/ month to ~240/ month, which effectively kills the savings I'd get with a lower interest rate. Now I think you are forced into the PMI for a certain period of time instead of being able to get out of it once you have 20% equity. Screw that. Ah, so the PMI issue is more with the monthly rate, not the upfront cost. I'll have to talk to some people and get some numbers worked out it seems. |