Already have an FHA loan? A streamline refinance can lower your rate with less paperwork. Check the monthly savings and the break-even point.
An upfront MIP of 0.55% is added to the new loan. Annual MIP depends on loan size, term and loan to value, so use your actual figure. Closing costs are treated as paid at closing, since many streamlines cannot add costs to the balance.
Estimated monthly savings
$0/mo
Estimate only. Payments include principal, interest and annual MIP on the starting balance, not taxes or insurance. The net figure compares total cost over your time horizon, including the balance still owed. Actual terms depend on the lender and your loan.
At a glance
The numbers have to show a real benefit. Duane can check the combined rate test and the break-even point for you.
Many FHA streamlines do not require one, but it depends on the lender and whether the loan is credit qualifying.
No. A streamline is for lowering your rate or payment, with very limited cash back.
You pay the upfront premium again, though FHA may credit part of the old upfront premium on a recent refinance. Annual MIP depends on the new loan. Ask for an itemized estimate.
If your equity has grown and your credit is solid, a conventional refinance may drop mortgage insurance. That is a separate refinance with its own qualifying rules.
Choosing a shorter term can raise the payment while cutting total interest. FHA has its own test for this, so ask before you choose.
Often a few weeks, depending on the lender and how many items are required.
Duane Buziak, NMLS #1110647. Licensed in VA, FL, TN, GA, NC, SC, MD, DC, WV, TX and KY. Brokered through Coast2Coast Mortgage, NMLS #376205. Verify licenses at nmlsconsumeraccess.org. For illustration only. Not a loan offer, commitment or rate quote. Equal Housing Opportunity.