I’m troubled by the misinformation being thrown around here.
You will NOT get rid of MIP with a FHA refi, streamline or not.
FHA is a loan for those with either a very low down payment and/or crappy credit. You will always have MIP with a new FHA loan, and it isn’t going away for a long time, regardless of equity.
It is comparable to assigned risk auto insurance.
Possibly a product for those who are desperate OR do not understand other options.
If you have great credit AND at least 5% down for a purchase (or at least 5% equity for a refi) AND a loan amount below $417,000 a FHA loan may not be your best option.
It seems that many people who can qualify for a better loan, end up with FHA at the urging of their mortgage ‘friends’ or bad advice on a blog.
Lpj, have you been told what your NEW MIP payment is going to be ?
I fully understand the benefit of lowering your rate to 3.50%, but I’m troubled by your $3600 net cost +/- and how much it is going to actually lower your total payment (AND extend your loan)
Will your house appraise for more than $336,000 now? Are your mid credit scores above 740 ?
When is your loan scheduled to close and what is your exact current principal balance ?
Above or below $319K ?
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Mark, Do you have 5% equity (or more) AND mid credit scores above 740 ?
They can restrict you from doing a Streamline for 6 months but they cannot restrict you from paying it off if you find a better loan.
