Looking for an FHA refi lender...

S1CEM · Joined: 11 Mar 2008 Posts: 12

Hi! We currently have an FHA mortgage at 5.5% and I would like to try to get that rate down some more if anyone has the ability to do it. I'm open to an FHA streamline refi or even an FHA hybrid (5/1 ARM) refi as we'll be in the home for less than 5-6 years. No other ARMs would be considered. Only FHA ARMs with a 1/1/5 cap structure.

If you have a product and a rate that would make this worth doing, please let me know. I know it may be more difficult with a conventional 30yr FHA since it would really require a full 1% or better rate reduction to be worth doing, but just let me know what you have. So far, I've seen some good FHA hybrid rates around 4.375% (at one time 3.875%), but want to see what else is out there.

Thanks in advance!

:D

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

You can get some good free quotes of FHA refinance at http://fha.mortgageloanplace.com/fha_apply.php?purpose=FHAR

I hope this helps you.

Chuck DeMonte · Joined: 17 Apr 2009 Posts: 51

In my personal opinion I would not touch the rate unless you can get someone to streamline you at 5%.

I talk to homeowners all the time that are chasing a lower interest rate when they already have a great one. 5.5% is an excellent rate do not add more money to the top of your loan to save a couple hundred dollars at the most.

The money it cost you to get the monthly savings isnt worth it. 9 times out of 10 It will take several years to recoupe the cost through the savings.

If you can afford your payment right now and you are merely doing it for a small monthly savings believe me its not worth it.

The homeowers that are always the best off are the homeowners that got into a loan with a great rate and never touched it again. If anyting send in just one extra payment a year and on a 30year mortgage you will most likely knock off close to 7 years. The goal is to pay it down not keep adding money on to it!

So unless you are going to lower the term of the mortgage by 10 years or more I would advise you to leave it alone, but thats just me.

S1CEM · Joined: 11 Mar 2008 Posts: 12

I get what you're saying Chuck and I do agree. I know the rate we have is good and I would make no change unless it was for a rate of 4.5 or less. My general rule of thumb is that it must be a 1% difference for it to be worth doing.

I missed out a couple of months ago on doing a 5/1 FHA ARM at 3.75%. But, that said, it looks as though I'm going to go ahead with a streamline refi for a 5/1 FHA ARM at 4.375%. Over the course of the 5 year lock period, I will more than recoup the additional investment and still have the option of a lower payment each month. Since we will not likely remain in our current home more than 5 years, it's a no-brainer. If this were our last home, I'd stay put. That said and given that this home is but temporary, I think it's one of the few instances where the 5/1 ARM is beneficial. And it's an FHA ARM, with good limits and caps, so no worries if we do stay for 6 or 7 years.

Your scenario is good if you plan to stay in a home. We don't. That's the issue. I have no interest in paying this home off. We just won't be here that long.

blegendary · Joined: 22 Sep 2009 Posts: 9

SICEM,

Out of curiosity, what state are you in?
There are places where we can get you those rates, but it's something that we'd need more information to look at.

Looking forward to your response,
Ben Kwak

S1CEM · Joined: 11 Mar 2008 Posts: 12

blegendary wrote: SICEM,

Out of curiosity, what state are you in?
There are places where we can get you those rates, but it's something that we'd need more information to look at.

Looking forward to your response,
Ben Kwak

Hi Ben. The state is Georgia.

Let me know what you have.

Thanks!

blegendary · Joined: 22 Sep 2009 Posts: 9

SICEM,

I submitted the information to one of my staff, and I'm waiting for a response.
I can probably draw up a few rough estimates, and I'll send them to you soon in a PM.

Just letting you know, so you don't think I fell off the face of the earth. :)

Josh Harmatz · Joined: 08 Sep 2009 Posts: 18

The FHA Streamline process is great. Right now with interest rates being very low it is a great opprotunity to save more.

KristinK908 · Joined: 29 Sep 2009 Posts: 26 Location: New Jersey

you most certainly will be able to find a 5% streamline, rates came down today..
good luck