We have a 2005 Wells Fargo Serviced FHA Mortgage with 5.625/30 yr, thinking of streamline refinance option.
What sort of fees are we looking at, can we incorporate those into the refinance amount. Balance owed is ~152K, never late. AFAIK there's some equity in the property.
Is it possible to refinance 30yr FHA to 15/20 year refinance?
Thanks a bunch :-)
You're actually in luck as you've had your loan since 2005. There is a new FHA streamline program just starting that allows you to refinance without your mortgage insurance going up, and with only an exceptionally small charge to HUD (a whopping $152!).
It is possible to refinance to a shorter term, and the fact you have equity is the key as an appraisal is required, along with proof of income and ability to meet FHA's debt to income requirements. However, if you shorten the term, you would have significant upfront and additional monthly HUD costs (can't shorten term on the streamline program), so it would be to your advantage to write the new loan for no more than the remaining term of your current loan, knowing you can pay as much additional principal monthly as you wish.
On the streamline option, no costs can be rolled into your loan, but since there wouldn't be an appraisal, costs are minimal. Title fees vary by state, need to know where you're at to know if you're in a "high cost" state. Additionally, I (and many lenders) often write FHA loans with the lender paying most/all closing costs. You would be setting up a new escrow account, and you get a refund from BOA on your current escrow balance once your current loan is paid off.
Glad to answer any other questions on the new FHA streamline program, let me know if you have any.