7 replies to this topic

[rreillycp3]

Hello all.

My wife and I purchased our home over 2 years ago. Our FHA rate is a bit higher than we feel it should be, and we keep getting offers in the mail to do a streamline refinance.

Well, I was curious if you had some general guidance as to which banks and/or credit unions (specifically in California, or the Central Valley "Fresno" area) that are the best to work with to get such a refinance done?

Our current rate is 4.75%, and it would appear we could save several hundred dollars per month if we do this.

Thanks for your help!

-RR

[Brian B The Loan Professor]

Hello all.

My wife and I purchased our home over 2 years ago. Our FHA rate is a bit higher than we feel it should be, and we keep getting offers in the mail to do a streamline refinance.

Well, I was curious if you had some general guidance as to which banks and/or credit unions (specifically in California, or the Central Valley "Fresno" area) that are the best to work with to get such a refinance done?

Our current rate is 4.75%, and it would appear we could save several hundred dollars per month if we do this.

Thanks for your help!

-RR

You can get the rate down a percent but note that you will have to come out of pocket for some if not all of the closing costs - any one that offers FHA should be able to help you
Your PMI will prorate giving you a small credit but it will not cover all of your upfront PMI -

You can take a slightly higher rate to off set some of the costs - but that defeats some of the purpose - however it may still make sense depending on your loan amount.

Brian

[rreillycp3]

Hello all.

My wife and I purchased our home over 2 years ago. Our FHA rate is a bit higher than we feel it should be, and we keep getting offers in the mail to do a streamline refinance.

Well, I was curious if you had some general guidance as to which banks and/or credit unions (specifically in California, or the Central Valley "Fresno" area) that are the best to work with to get such a refinance done?

Our current rate is 4.75%, and it would appear we could save several hundred dollars per month if we do this.

Thanks for your help!

-RR

You can get the rate down a percent but note that you will have to come out of pocket for some if not all of the closing costs - any one that offers FHA should be able to help you
Your PMI will prorate giving you a small credit but it will not cover all of your upfront PMI -

You can take a slightly higher rate to off set some of the costs - but that defeats some of the purpose - however it may still make sense depending on your loan amount.

Brian

Brian, much appreciated. I'd still like to hear more opinions, though I'm sure you're spot on.

My question also becomes two-fold, if what you're stating is true: 1. Who will run through the options with my wife and I, with the least hassle, and actually want to help us rather than make a buck? and 2. I know cash call is the root of all evil, but I keep hearing about their no closing cost no fee 3.85% apr and rate 30yr fixed... any validity there or what is the caveat / catch?

Thanks and apologies if the answer to the cash call question is already out there somewhere.

[luckydriver]

without your numbers i cannot do the math for your situation, but i can give you an example...with current hi MIP monthly, it doenst pay for me to try to refi out of my 4.5...i forget my exact number but i think i pay just under 80 a month and it would rise to 180ish so any savings get eaten up.

of course after X period of time you lose MIP so if you can eat the cost until then you'd make out

[Brian B The Loan Professor]

Hello all.

My wife and I purchased our home over 2 years ago. Our FHA rate is a bit higher than we feel it should be, and we keep getting offers in the mail to do a streamline refinance.

Well, I was curious if you had some general guidance as to which banks and/or credit unions (specifically in California, or the Central Valley "Fresno" area) that are the best to work with to get such a refinance done?

Our current rate is 4.75%, and it would appear we could save several hundred dollars per month if we do this.

Thanks for your help!

-RR

You can get the rate down a percent but note that you will have to come out of pocket for some if not all of the closing costs - any one that offers FHA should be able to help you
Your PMI will prorate giving you a small credit but it will not cover all of your upfront PMI -

You can take a slightly higher rate to off set some of the costs - but that defeats some of the purpose - however it may still make sense depending on your loan amount.

Brian

Brian, much appreciated. I'd still like to hear more opinions, though I'm sure you're spot on.

My question also becomes two-fold, if what you're stating is trueI wouldnt lie to ya : 1. Who will run through the options with my wife and I, with the least hassle, and actually want to help us rather than make a buck? No one - consider what you do for a living - will you do it for free? You nee to find someone you trust and know going in they make money -there is no such thing as a free loan - a lot of ads are misleading if it is no costs that may simply mean they dont charge you - that doesnt mean there wont be title costs - at that rate you could probably get that a lot of places - and 2. I know cash call is the root of all evil, but I keep hearing about their no closing cost no fee 3.85% apr and rate 30yr fixed... any validity there or what is the caveat / catch? there is almost always a catch but by the time you figure out what it is you are usually too far into the process to change so you just go with it - thats how that kind of marketing works - I cant speak specifically to cash call but any company that makes a living off of payday loans is going to make money somewhere in there

Thanks and apologies if the answer to the cash call question is already out there somewhere.

to LuckyDriver - when did you do your loan there is a change in pmi coming up for streamlines specifically for folks that financed prior to a certain date in 2009 -(it is on here in a topic somewhere) besically if you have the older PMI rates they are going to allow you to refi and get the same older PMI rates - it is going to be a busy time as many people are just waiting for that to be available -

[luckydriver]

Loan Origination Date
09/30/2010

[Brian B The Loan Professor]

Loan Origination Date
09/30/2010

I am afraid then it wont help
but the rate you are paying shouldnt double if you do a streamline it should be close to what you pay now - you are right though the clock would start over on it and the new rate may not be low enough to justify that and the costs

[jop3]

Hello all.

My wife and I purchased our home over 2 years ago. Our FHA rate is a bit higher than we feel it should be, and we keep getting offers in the mail to do a streamline refinance.

Well, I was curious if you had some general guidance as to which banks and/or credit unions (specifically in California, or the Central Valley "Fresno" area) that are the best to work with to get such a refinance done?

Our current rate is 4.75%, and it would appear we could save several hundred dollars per month if we do this.

Thanks for your help!

-RR

You can get the rate down a percent but note that you will have to come out of pocket for some if not all of the closing costs - any one that offers FHA should be able to help you
Your PMI will prorate giving you a small credit but it will not cover all of your upfront PMI -

You can take a slightly higher rate to off set some of the costs - but that defeats some of the purpose - however it may still make sense depending on your loan amount.

Brian

Brian, much appreciated. I'd still like to hear more opinions, though I'm sure you're spot on.

My question also becomes two-fold, if what you're stating is true: 1. Who will run through the options with my wife and I, with the least hassle, and actually want to help us rather than make a buck? and 2. I know cash call is the root of all evil, but I keep hearing about their no closing cost no fee 3.85% apr and rate 30yr fixed... any validity there or what is the caveat / catch?

Thanks and apologies if the answer to the cash call question is already out there somewhere.

There is honestly not an answer to your first question. There is no one place that is better than others. A lot of it has to do with the person - the actual loan officer. Talk to friends and family and see if they have a recommendation of a person they used. Like Brian said, everyone is doing this to make money, you just want someone that is going to be honest and direct with you about how its' done. Talk to a referral from a friend, maybe a local company, and even your current servicer and get a couple of opinions.

That Cash Call ad with the APR is very misleading. The APR is inaccurate because they are advertising it with only the lender fees rolled in, not the mortgage insurance. The true APR is much higher. The interest rate is likely close, but you'll likely find the same or better deal with a number of other companies that aren't so misleading.