Financing in 76148>Question Details

Souky Detvon…, Home Buyer in Dallas, TX

Conventional or FHA

Asked by Souky Detvongsa, Dallas, TX Fri Mar 16, 2012

Help! Im in a process of going thru a Coventional loan to refinancing to a 15yr fixed at 3.375 with some money down, already did an appraisal and has not came in yet. But just found out myself about an FHA streamline n in couple months ufmip is increasing. What should I do stick w Conventional or FHA?

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Souky Detvongsa’s answer
Thats also the thing i don't want to bring any money out. So if I was to do FHA I wouldn't have to come up with closing cost then? Wouldn't I be able to finance that in? I'm lost here. And what's this new thing about prior to April 9 2012 Ufmip increasing from 1% to 1.75%. And FHa loan that was endorse before may 9 2009 on June 11, 2012 ufmip will decrease from 1% to 0.01% to the base of the loan? Should I wait til then? Does conventional have a better ufmip? Still waiting on appraisal, I'm thinking it's low since its taking forever.
0 votes Thank Flag Link Wed Mar 21, 2012
BEST ANSWER
Locking a rate usally just means you have a "pricing window" that you're commiting to, not necessarily a rate. You do need to choose a product and a rate in a pricing window to be 'locked'. Typically a lender will let you chaneg products and maintain your lock timing (price adjustments may apply depending on the product you switch to). If you've paid for an apparisal and doing the conventional refinance, you might as well stay there unless your appraisal comes in low then you could flip to a FHA streamline refi without an appraisal if you can afford to pay the closing costs out of your pocket (your loan amount will be the payoff plus your new UFMIP (Up Front Mortgage Insurance Premium, it was added to your last loan) minus your pro-prated UFMIP refund.
0 votes Thank Flag Link Mon Mar 19, 2012
I have an FHA loan right now, and already locked in the rates. But since I've already paid for an appraisal FhA streamline doesnt matter now right?
0 votes Thank Flag Link Fri Mar 16, 2012
If you're not in a FHA loan now, you can't do a FHA streamline refi, just a standard one. If you're going conventional to convenitonal, stick where you are.

Besides that, rates got hammered the past week so doing anything that may cause your lock to have to be extended or obtain a new lock would probably be very cost prohibitive.

3.375% is still a respectable rate and the cost to you to get out of it may be very high and the new lender/FHA won't be able to use your conventional appraisal either, driving up the cost more.
0 votes Thank Flag Link Fri Mar 16, 2012
Hi,

Do you currently have a FHA loan?

Regards,

Mark DeWitt
National Residential
San Diego
858-212-7054
mdewitt@natresdirect.com
0 votes Thank Flag Link Fri Mar 16, 2012
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