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Question about refi for a jumbo 203k construction loan

The last post in this topic was posted 2127 days ago. 

 

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All,

 

I just closed on an FHA 203k loan to rehab my primary residence. Total loan amount is $647,000. I got an interest rate of 3.875 and an APR of 4.250 and zero points. I have a credit score of 650-660 and my wife is all above 720. She makes 110 a year and I make 100.

 

My main loan guy told me don't worry about the APR. In 6 months I can do an FHA streamline to get my payments reduced by $511/month (He said that was if we refi at an interest rate of 4%. I am not sure if the MIP is included, I think he said we get a refund from the unused MIP in my current loan (Since I would be refinancing six months after getting the current loan, and the MIP is prepaid for the first few years of the loan)

 

My question is, is it realistic to believe I can do an FHA streamline so soon after getting my current loan? I already had a regular FHA loan to buy the residence, so I have been paying the current loan on time for 3+ years, and these 6 months of payments are already paid so I will have almost 4 years of paying an FHA mortgage on time.

 

Sorry if I sound confused :-)

 

bunyan

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I am confused

did you get a new lown for the entire amount or do you gave two loans now?

You can get a streamline provided there is a new benefit to you

Who know where rates will be then?

B

 

 

Hi Brian,

 

I spoke with you briefly back on 09 when I got my original loan. Thanks for the reply :-)

 

I got a new loan for the entire amount

The only benefit I am looking for is to reduce my monthly payments. I was thinking of either doing a FHA streamline in 6 months OR if it's possible, to refi into a conventional product since I will be adding an additional lot to my property, and the market appears to be going up, I was hoping to be outside of the 80% LTV ratio.

 

bunyan

 

P.S. Yes no one knows where the rates will be in 6 months but if the govt plans on buying the rate down I don't think they will go up that much higher where I couldnt lower my payment. I could be wrong though, which is why I posted here lol

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I am confused

did you get a new lown for the entire amount or do you gave two loans now?

You can get a streamline provided there is a new benefit to you

Who know where rates will be then?

B

 

 

Hi Brian,

 

I spoke with you briefly back on 09 when I got my original loan. Thanks for the reply :-)

 

I got a new loan for the entire amount

The only benefit I am looking for is to reduce my monthly payments. I was thinking of either doing a FHA streamline in 6 months OR if it's possible, to refi into a conventional product since I will be adding an additional lot to my property, and the market appears to be going up, I was hoping to be outside of the 80% LTV ratio.

 

bunyan

 

P.S. Yes no one knows where the rates will be in 6 months but if the govt plans on buying the rate down I don't think they will go up that much higher where I couldnt lower my payment. I could be wrong though, which is why I posted here lol

You can do it that soon, if rates are still down it wont take much to shave a lot of a payment when the loan amount is that large.

I guess my initial thought was that 3.875% is a decent rate

If you do have the equity and can get away from PMI you should save a ton 8-9k a year easy just from that

B

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Thanks Brian! As soon as it is feasible I will be doing a refi, either the FHA streamline or a regular refi into a conventional

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Isn't FHA talking about MIP for the life of the loan? If that happens, you will have to go conventional.

 

 

That's only for new loans IIRC

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Isn't FHA talking about MIP for the life of the loan? If that happens, you will have to go conventional.

 

 

And if I refi (Into a conventional) then I am paying off the FHA loan so there would be no more MIP

 

Not planning on doing FHA when I refi

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Hello,

 

Just bumping to see if Brian would mind telling me if now is a good time to try to Refi or not. My credit scores are over 725 now and my wifes are still over 700 as well. Think I should pull the trigger now? Anyone? Thanks,

 

Bunyan

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