GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Fri Aug 22, 2014 2:50 am




Post new topic Reply to topic  [ 3 posts ] 
Author Message
 Post subject: shopping for Refi
PostPosted: Fri Feb 22, 2013 8:53 pm 

Joined: Fri Feb 22, 2013 8:43 pm
Posts: 1
I'm interested in an FHA streamline refinance of my home loan and I want to shop around different lenders to be sure I get the best deal. What questions should I be asking them? Any tips on how to keep track of the different offers so I can make comparisons?


Top
Offline Profile E-mail   
 Post subject: Re: shopping for Refi
PostPosted: Fri Feb 22, 2013 11:43 pm 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 262
Location: Cincinnati, OH
I apologize in advance, this may end up being a long response.

One thing to consider before comparing offers:

1. When did your current FHA mortgage get endorsed by HUD? You can call HUD at 800-697-6967, 8:30 a.m. to 8:30 p.m. Eastern Standard Time, Monday through Friday to find out.
If it was endorsed prior to May 31, 2009, then you qualify for lower Up Front Mortgage Insurance Premium (UFMIP) of 0.01% (1.75% if not) and lower annual Mortgage Insurance Premium (MIP) of 0.55% (1.25% or 1.20% if not)

Now for the offers (assuming you are doing an FHA Streamline without an appraisal):

The maximum your new BASE loan amount can be is the current payoff (principal balance + interest). So all the offers should be based off the same loan amount.

There are 3 components that are going to make up the settlement costs on a refinance (any type, not just FHA), they are:

Payoff - make sure every lender/loan officer you speak to is basing it off the same payoff, thus the same loan amount on the new loan since you can't increase it on an FHA streamline
Prepaids - these are the amounts to setup your new escrow account for taxes and insurance and interest owed on the new loan from the day of funding through the end of the month. This figure is irrelevant in your comparison. Different lenders/loan officers will calculate it differently, but at the end of the day it is based on closing date/first payment date/date taxes/insurance are due, so it should be practically identical with all lenders once you get to closing.
Closing Costs - this is the figure that you will want to compare, along with interest rate. They will change from lender to lender, and based off the interest rate that you want.

Basically, with an FHA Streamline without an appraisal, you will be bringing the PREPAIDS + CLOSING COSTS to closing. That will be your cash to close.

If it were me, I would call a few lenders and at least one broker and give them my credit score and estimated payoff amount and request that they email me a few different quotes for different rates. Make sure you let them know that you want to see all of the following with the quote:

Base Loan Amount (should be equal to the payoff estimate you give them)
Final Loan Amount (= base loan amount + UFMIP)
Interest Rate
Estimated Prepaids
Estimated Closing Costs
Estimated Cash to Close

I would also make sure that you call HUD and get your endorsement date (if you think your current mortgage was endorsed prior to May 31, 2009) and let the loan officer's know this.

Hope that helps.

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


Top
Offline Profile E-mail   
 Post subject: Re: shopping for Refi
PostPosted: Fri Feb 22, 2013 11:49 pm 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 262
Location: Cincinnati, OH
Also, once you make a decision on the lender/broker you are going to go with, they should provide you with a Good Faith Estimate. Few things to keep an eye on:

1st page - Important Dates #1 - date the interest rate is good through. This will let you know how long the interest rate is locked for

2nd page - to determine if the closing costs are the same that they quoted you, you can add up boxes A + 3 + 4 + 5 (should be ZERO) + 6 + 7 + 8

2nd page - the prepaids are boxes 9 + 10 + 11

Shame that the government decided to get rid of the simple, 1 page, itemized Good Faith Estimate for the monstrosity they call a Good Faith Estimate now. Guess that's what happens when people that have never originated a mortgage are in charge of determining the disclosures.

I try to check in on the forum daily, but if you have any questions feel free to email me at tc DOT strait AT gmail.com (trying to avoid spam bots)

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 3 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: Google Adsense [Bot], Vile Merchant and 14 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki