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Should I streamline refinance?

Originally purchased March 2009 -- 123k / financed 120,726 @ 5.375online research says its worth 77,900 right now, and honestly given the recent sales, foreclosures, etc in the neighborhood that's probably fairly accurate.I got a quote from my lender to streamline refinance. 4.25 was the rate, 30 year, no out of pocket expenses at closing. My monthly payment right now is $930.90 and the new payment is estimated at $795.17. Is this good? Do you need additional info to make that call? Thanks in advance. by marcus_164_876 from Jacksonville, Tennessee. Jun 29th 2012 Reply


Donald LaPlume (dlaplume)
#6 ranked lender in New Hampshire - 47 contributions

Hi Marcus,The short answer is yes you should take advantage of the savings. Based on the numbers you listed in your question. The reason is that if all closing costs are being rolled into your rate your new payment and rate cost you nothing to get. That said, I think the rate for that is a bit high. If you would like a potentially better option feel free to contact me at 603-543-3700 ext 1. I would be happy to help. No matter what though, if you qualify you should take advantage since there is no real downside.Thank you for your question Marcus!Don LaPlume

Jun 29th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,701 contributions

It's difficult to say based on the limited info you provided.. On the surface the deal looks fair.. It's possible to get a little lower rate, but unless we know what costs are being paid by your lender, it's hard to say.. You can check with a few other mortgage brokers in your area and get a 2nd opinion, and I'm sure there are people here willing to do the same.. But again, it's looks to me like a fair deal.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 29th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

Sounds like a good option. No $ out of pocket, lowers the payment by $135. Here's the problem I have. Even for a loan of $120,000, 4.25% is too high for an FHA streamline. I don't lend in TN, but I would definitely shop around. Look for a local Mortgage Banker/Broker, rather than one of the big banks or national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Jul 1st 2012
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Andy Munsey (AndyMunsey)
#3 ranked lender in Tennessee - 1 contribution

Yes, you could definatley improve your situation. The FHA Streamline program does not require an appraisal so the current value is irrelevant. I can tell you that we can provide you with a better deal than what you are quoting. You can call my office at 865-691-8910. We are a Tennessee's leading independent mortgage company.

Jun 29th 2012
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 224 contributions

I think 4.25 is a little high for an interest rate even though all closing costs are being paid.I am a local mortgage broker here in Murfreesboro, TN. give my office a call & I can quote your rate based on your information & credit score.Nancy Releford615-867-3060

Jun 29th 2012
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

I also think the rate is a little high. I would call a Lender 411 mortgage professional in your area and see what they can do for you. Definitely worth it for you to refinance.

Jun 29th 2012
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Chris Mylin (chrism_408_673)
#57 ranked lender in Ohio - 32 contributions

I agree with everyone else in that the rate seems high. With that I would definitely encourage you to take advantage of the Streamline program. One thing to keep in mind too is that in most states and with most lenders the Streamline program changed somewhat this month regarding rolling in fees when doing a "no appraisal" streamline. In most cases now you will have to pay your taxes, insurance and so on and the lender cannot roll that into the loan amount.

Jun 29th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

The beauty of the FHA streamline refinance is that it does not require an appraisal to be completed. In other loan programs, being that far under water would kill your hopes of refinancing. I would advise you to get quotes from other lenders in your area because 4.25% is higher than the market rate for that program. For example, we offer the program with no closing costs and an interest rate of 3.625. Unfortunately we do not do business in TN. Shop around, and I am sure you will find a better deal!

Jun 29th 2012
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jdfk;alf sddkfjlkf (afjalskdflkasdfl)
#17 ranked lender in Tennessee - 16 contributions

4.25 definitely sounds way too high........ but yes saving $$$ is always a good thing.

Jun 29th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#76 ranked lender in Florida - 2,240 contributions

Yes you should do a streamline but it sounds like the rate might be a little high. I would get a second opinion from a mortgage broker. All the best!

Jun 29th 2012
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