Do you need to incur title services costs in FHA Streamline Refinancing?
I keep reading FHA Streamline is supposed to be less paperwork, but we are completing exact same stuff and paper work as we did in the original closing? And the cost keeps going up such as title services fee. I still have the original title insurance and deed and they only 4 years old. I am confused why we have to still pay almost three thousands dollars for title insurance as there is no change in title, same borrowers, same house.
One quick question about the closing cost
Started by
Chelavictim
, Jan 27 2012 09:09 PM
6 replies to this topic
#1
Posted 27 January 2012 - 09:09 PM
#2
Brian B The Loan Professor
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Posted 27 January 2012 - 11:00 PM
Yes title insurance insures the new loan from any title issues - no way around it.
Streamline isnt everything it used to be - these days about the only advantage is the ability to do a no appraisal refi
B
Streamline isnt everything it used to be - these days about the only advantage is the ability to do a no appraisal refi
B
#3
Posted 28 January 2012 - 04:05 PM
in PA the have a 'reissue' rate that's a tad cheaper but it is only for 3 years post loan i think and is stepped down percentage wise
#4
Posted 30 January 2012 - 09:42 AM
I agree, the term "streamline" is misleading these days. it used to be that you didn't have to show income, credit or appraisal for a streamline, so it really was less paperwork. Not anymore. There are still a couple of advantages, but not much.
You always need new title insurance on a refinance. They are insuring over everything that happened since the last time you refi'd. They are searching for liens that could pop up, anywhere from mechanics liens, to judgements and bankruptcies, to other loans. You'd be surprised at what can come up when it's still just same house, same borrowers.
You always need new title insurance on a refinance. They are insuring over everything that happened since the last time you refi'd. They are searching for liens that could pop up, anywhere from mechanics liens, to judgements and bankruptcies, to other loans. You'd be surprised at what can come up when it's still just same house, same borrowers.
#5
Posted 14 March 2012 - 09:41 AM
Thank you all for your help and taking time to answer my questions. You have been great help and I really appreciate your time and knowledge.
We just closed and our previous mortgage is paid off (interest rate is down to 3.75% from 5.5%, but a little higher MIP, 1.1% instead of our old 0.55%). Chase immediately cut my online access to our mortgage (that was fast, but that's what I expected from Chase that denied my two applications for a streamline refinancing although we met all the requirements for streamline refinancing, which worked out better since I got a lower interest rate than what I would have gotten from the Chase during the time of my applications).
Thank you again.
We just closed and our previous mortgage is paid off (interest rate is down to 3.75% from 5.5%, but a little higher MIP, 1.1% instead of our old 0.55%). Chase immediately cut my online access to our mortgage (that was fast, but that's what I expected from Chase that denied my two applications for a streamline refinancing although we met all the requirements for streamline refinancing, which worked out better since I got a lower interest rate than what I would have gotten from the Chase during the time of my applications).
Thank you again.
#6
Posted 19 March 2012 - 07:02 AM
I agree, the term "streamline" is misleading these days. it used to be that you didn't have to show income, credit or appraisal for a streamline, so it really was less paperwork. Not anymore. There are still a couple of advantages, but not much.
You always need new title insurance on a refinance. They are insuring over everything that happened since the last time you refi'd. They are searching for liens that could pop up, anywhere from mechanics liens, to judgements and bankruptcies, to other loans. You'd be surprised at what can come up when it's still just same house, same borrowers.
the new insurance is for the bank, correct? when you first buy a house that insurance remains in effect until you sell?
#7
Posted 22 March 2012 - 09:02 AM
I agree, the term "streamline" is misleading these days. it used to be that you didn't have to show income, credit or appraisal for a streamline, so it really was less paperwork. Not anymore. There are still a couple of advantages, but not much.
You always need new title insurance on a refinance. They are insuring over everything that happened since the last time you refi'd. They are searching for liens that could pop up, anywhere from mechanics liens, to judgements and bankruptcies, to other loans. You'd be surprised at what can come up when it's still just same house, same borrowers.
the new insurance is for the bank, correct? when you first buy a house that insurance remains in effect until you sell?
Seems to be. But when you refinance, the new one is issued. The closer told us the previous one is no longer valid.
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