Home Buying in Silver Spring>Question Details

Dawn.r.washi…, Home Buyer in Upper Marlboro, MD

FHA Streamline Refinance

Asked by Dawn.r.washington, Upper Marlboro, MD Tue Sep 4, 2012

I'm thinking about refinancing my FHA loan. However, I'd like to move in the next two to three years. Will refinancing require me to stay in my home longer? Also, I'm living in the Baltimore area now and am looking to move closer to the Silver Spring/DC area, what is the required down payment nowadays?

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Dawn, there should be no requirement as far as paying the mortgage off when you move. If you refinance now, you should still be able to move next year if you wanted. This is something to confirm with your loan officer, but I am pretty certain this is the case.

As far as down payments for your next house, the FHA offers a 3.5% down payment loan which is likely to be the smallest you will find these days (not sure if anyone will be offering 100% 2-3 years from now). Of course, any loan with less than 20% down payment will require additional funds and/or monthly payment for mortgage insurance.

Hope this helps.
1 vote Thank Flag Link Tue Sep 4, 2012
Dawn,


As Piero mentioned there is no set time as far as requirements go. But there is a recapture period if you aren't going to stay in the home past a certain time where it might not make sense for you. Just as an example if the closing costs were say 2,000 and you saved $100 a month the time needed to stay there for it to make sense would be 20 months. If you sold before that then it doesn't make sense for you. What I recommend is a no or low closing cost option. You can explore options once I know the loan amount and a few other things and then can show you what it costs, what it saves and come up with a plan to save you the most money with the least money spent. It depends on your current rate, credit score, etc. Again as Piero said the minimum down payment is 3.5% right now for FHA loans.
He is an excellent Realtor by the way so give him a call when you are moving down this way. Hope this was helpful and please let me know if you have any other questions.

Thanks,

Brent Mendelson
Senior Loan Officer
1ST Mariner Mortgage
O-240-235-5314
C-301-412-0259
F-240-235-8236
Bmendelson@1stMarinerbank.com
Lending in all 50 states
nmls#111407
0 votes Thank Flag Link Tue Sep 4, 2012
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