Refi?

[Blue Leader]

I have an FHA loan. My 2-1 buydown is about to end with 6.45% being my final, fixed (30 yr) rate. I qualify for the FHA streamline.

Specs:

The rate today is 5.25%.

.8% origination fee.

currently owe 191k, after refi the loan would be 199k. (~5k in prepaid stuff, pmi, mip, etc.: ~3500 in closing fees.)

This would effectively drop my payment by ~$130/month.

We plan to be in the house at least 3 more years, likely 5-8 years.

Does this sound expensive for a streamline refi? I've only been to one place so far and this is what I came away with.

Thanks for any input!

[TheColonel]

I think you could do a little better on the rate, but it does depends on what state you're in. Spending a little time on the phone to find a better rate may be well worth your time.

[mtsen]

the concept is ok, just remember this is helping your cash flow, not necessary improving your asset worth. just make sure no other hidden charges and get a better rate ...

[Blue Leader]

OK update time:

I found another company, actually a federal banker, not a mortgage broker, that locked me at 5% and they pay all closing fees. (no, the fees are not put back into the loan) All I am ending up paying is the prepaids (mortage ins) and reserves (escrow).

The total loan amount with the new company will be ~$3,500 less than if I had just gone with the first company.

Always look for more than one lender to give a good faith estimate! I ended up going through moncor, inc.

(oh, btw, this was a fha streamline.)