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Historic Low Rates Make FHA Streamline Serious Option Now?

8-2-11 FHA Streamline GoodUpdated August 2nd, 2011 – Yesterday we saw an unprecedented drop  of interest rates.

 This now becomes a very realistic option!

Original Article July 14th, 2010:  FHA Streamline refinance program is available to homeowners that currently have an FHA loan on an owner occupied home.

FHA Streamline refinance loans are much quicker and easier than a typical refinance due to the fact that there is no appraisal required and your loan balance will not go up.

With interest rates lower than I have ever seen them ( Added August 2nd, 2011:  This link goes to Reuters article from 1 year ago – rates have dropped far below that! ) It makes sense to run the numbers real quick and see if there is an option for you to reduce your payment.

Before I tell you how to get started, let me run a couple of important things by you so that you can make an educated decision about whether or not pursuing this loan is financially advantageous for you.

No cost refinance loans

No cost loans are a commonly advertised “lure” to get you to pick up the phone and call a lender.  The fact is, with no cost and no fee loans, there are fees and costs and the interest rate is raised to allow the lender to pay those fees out of what they earn from charging you a higher rate.

This is often a very convenient and cost effective “win, win” situation for both the borrower and the lender.  The part that I often have challenges with is the fact that this is not disclosed and the borrower is not given the opportunity to make an educated and informed decision.

No cost disclosure

So here’s the deal.  The actual costs of an FHA streamline refinance are relatively low.

You can pay these minimal costs out of pocket and probably get a slightly lower interest rate.

This always results in you saving much more in the long run depending on how long you keep the loan. If you would like to have no money out of pocket there is an opportunity to do so.

Will a FHA Streamline refinance loan save you money?

So here’s my offer.  If you would like us to run some numbers and see if a streamline refinance will benefit you, we can do this several ways.

Click Chat on the right side of this article, give us a call at 866-667-6724 and ask about a FHA streamline loan or leave a comment below and we will respond shortly.

Not missing an opportunity

If you know anyone that may benefit from being educated about a FHA streamline refinance, please forward this article to them.  Thank you in advance for spreading the good news!

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9 Responses to Historic Low Rates Make FHA Streamline Serious Option Now?

  1. Theresa Harrell August 3, 2011 at 7:50 am #

    I am interested in my options for this loan
    I currently have a 30 year fixed rate at 7% My monthly home loan is 1908 and I would love to know how I can lower my payment?

  2. Chris November 1, 2010 at 3:53 pm #

    I look forward to working with your company one month from now. I currently have a 5.5% FHA loan on my first home. We make our sixth home loan payment on December 2, 2010 and hope that we might be able streamline refinance to get our monthly payments down just a little bit.

    [Broadview], is it too early to start crunching the numbers to see if it is worth while for me to streamline refinance? Or should I wait until after I make our sixth home loan payment?

    • Legacy Content November 1, 2010 at 4:00 pm #

      That’s awesome Chris! Thanks for the comment.

      It’s not too early to look at the numbers although the interest rate is something we will want to keep an eye on. Rates have been going up for over a week now, we could lock the interest rate in now, in anticipation of them continuing to move in this direction. Or we can wait and “see” what rates are in 30 days.

      Either way, it’s probably a good idea to take a look at the numbers now – The main reason is that in October the home loan insurance rates changed. Your monthly home loan insurance payment will increase if you do a streamline refinance.

      We want to take a look at that and see if it even makes sense to refi. A lower rate may not mean a lower payment, at least as long as you have home loan insurance on your loan.

      • Chris November 2, 2010 at 1:07 pm #

        Thanks [Broadview] for the reply. Who should I contact to see if the number will work for me?

        • Legacy Content November 2, 2010 at 1:22 pm #

          Just call the office, anyone can help you – 866-667-6724

  3. Cory (Fontana, CA) October 29, 2010 at 12:05 pm #

    I have been looking around at possible options for an FHA Streamline. We currently have a 5% rate, and have been considering a 5/1 term @ 3.25%. My understanding is that the cap for the first year after the initial 5 years is a rise of 1%, and subsequent raise of 1% annually to a cap of 8.25%. Do you think this is a wise move, even if we plan on being in the house for being the 5 years? (Obviously I don’t want to have a ballooning interest rate)

    • Legacy Content October 29, 2010 at 12:41 pm #

      Great question Cory, good job doing you homework here!

      With a 5/1 ARM your interest rate would be fixed for the first 5 years. After that the rate will most likely adjust based on the margin and index terms of the Note. The rate can increase or decrease, based on the caps, once a year.

      Another thing we would have to consider is that in order to qualify for a FHA streamline you would have to realize a net 5% benefit in payment reduction. Mortgage insurance has recently changed (Oct 1st) which would result in a much higher monthly home loan insurance rate. This will increase your monthly payment if you refinance back into an FHA loan and may eliminate all of the benefit of trying to reduce the rate.

      If you would like us to run some numbers, let me know. I’m happy to look at if for you so you have all the information you need to make a more informed decision.

  4. Margaret (Peggy) Hunt July 15, 2010 at 10:02 am #

    Yes, I am interested in talking with you about an FHA streamline loan. We currently have a Cal-Pers FHA loan at 6.125%–not bad at the time we bought our home. We would prefer to not have out-of-pocket expenses for the loan. Also, I am concerned that our home loan balance is more than what our home’s current appraisal. Thank you!

    • Legacy Content July 15, 2010 at 2:43 pm #

      Hi Peggy,
      Gabe is going to give you a call to talk to you a little more about what options are available – I’ve removed your contact information here so it’s not public 🙂 Thank you so much for the comment!