Financing in Tolleson>Question Details

Amygdala, Home Buyer in Phoenix, AZ


Asked by Amygdala, Phoenix, AZ Sat Nov 14, 2009

I'm aware of the changes to be implemented 11/17 and I'm not certain exactly how much equity needs to be established.

We have been in our home 1 yr./1mo. (closed 10/15/08) with a 30 yr. fixed at 5.875. (Original loan amt. 129,000-- we are at about 127,500 presently). One recent offer was for a 5.5 fixed refi that would lower our payments about 29.00 (which I'm not sure falls into the 5% less than current payment stipulation). I'm not worried about the payments at all (no lates or any financial turmoil).
I just want to get the lowest rate possible utilizing the current FHA streamline process and with minimal or no closing costs and fees. Please advise.

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Keane Ng’s answer
What kind of property do you own? What's your credit like?

Technically, FHA does not have a credit score requirement for FHA streamline refinances, but most lenders do.

You can only go up to 97.15%or 97.75% of your purchase price if you just bought the house. Since you put 3.5% down, there's not a lot of room to roll in new closing costs.

What a lender typically does to help minimize out of pocket expenses for a consumer is offer a higher than market interest rate which allows them to cover more of your closing costs on the refinance. Based on the size of your loan, I'm guessing that's why you're being offered a higher rate. I don't want to go into all the details, but it is easier for lenders to pay the borrower's closing costs when the loan amount is around $300k or higher. If you want more details as to why, just let me know and I'll spill all the geeky loan info.
0 votes Thank Flag Link Sun Nov 15, 2009
We can offer you a 4.875 to a 5% 30yr fixed and can close in 10 days. Give me a call at 480.650.8602.
0 votes Thank Flag Link Sat Nov 14, 2009
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