Refinancing Your F.H.A. Mortgage at Lower Cost
By tovarichpeter Follow Wed, 20 Jun 2012, 10:16am 634 views 4 comments
In South San Francisco CA 94080
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...."After the housing market collapsed in 2007, more borrowers began to turn to the F.H.A.’s loan program because it has less stringent guidelines than conventional mortgages: people with credit scores of 580 or more can put down as little as 3.5 percent."
Who the hell will be able to refinance their existing FHA loan??? They're all underwater...
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Santa Clara, CA
Call it Crazy says
True, but those who were taken FHA loan before June 2009 can and should, but all others are mostly stuck with their loans. However, those who bought in 2009-2010 should be fine, prices hasn't dropped so much since 2009 and interest rate wasn't horrible comparing to 2005-2008.
Upfront MIP: For an FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point.
Annual MIP: Annual MIP is similarly cheap. For an FHA Streamline Refinance that replaces a FHA loan endorsed prior to June 1, 2009, the annual MIP is 0.55% annually, or 55 basis points.
http://themortgagereports.com/1604/fha-streamline-refinance-mip-refund
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zhanka says
I wonder about that, here is a quote from the article link you posted, really make me wonder.....
......"Now, as written in the FHA's official mortgage guidelines, the mortgage approval process for an FHA Streamline Refinance says :
1. Employment verification is not required with an FHA Streamline Refinance
2. Income verification is not required with an FHA Streamline Refinance
3. Credit score verification is not required with an FHA Streamline Refinance
And, as mentioned earlier, there's no need for a home appraisal, either.
....."Put it all together and it means that you can be (1) out-of-work, (2) without income, (3) carry a terrible credit rating and (4) have no home equity -- and yet, you will still be approved for the FHA Streamline Refinance program."
If those lines don't SCREAM nuclear BOMB and a recipe for disaster, nothing does... Isn't this what got us into this housing downturn to start with???
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When I bought my Title lawyer, told me to never ever refinance.
During that snapshot in time, my terms, rate and clauses in my Mortgage was the best they could possibly ever be.
"No late charges"
"Rate can never go up, even if I'm late or miss payments and take a few months to get caught up"
"Can't call in the loan because the value is less than the loan", or raise the rate, or make me put down more money."
Now as rates get lower than the %4.50 I bought at, and I do the research to refinance now, I would actually end up paying over a $150 more a month at %3.65 that is right now. Also the political dog and pony show to protect the home buyer is over. A lot of those provisions that were in my Mortgage no longer exists.
So as tempting as it would seem to want to lower my rate, my monthly payment would actually be the same if not a little more if I refid at 2%, and I would find my self in a position, where if I hit hard times, and missed a payment. My rate could jump to prime, and perhaps in ten years, that rate could very well be over 12% again. If not then it will one day.
zhanka says
MIP has risen 4 or 5 times since June 2009.
Call it Crazy says
Just because these programs are available doesn't mean they are granting them. Read the comments.