FHA Streamline Refinance

FHA Streamline Refinance

Presented by Rhonda Porter
Washington State NMLS Licensed Originator MLO-121324
Mortgage Master Service Corporation #44045

FHA Streamline Refi
Homeowners with FHA insured mortgages have the
opportunity to refinance their existing loan utilizing
an FHA Streamline Refinance
• No appraisal required;
• Reduced documentation is available;
• Reduced mortgage insurance premiums available
for some FHA streamline refi’s;
• Some of the existing upfront mortgage insurance
premium may be credited towards new refi.

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Should You Have an Appraisal?

• No loan to value (LTV)
• Closing cost cannot be financed.
Without
NOTE: Rebate pricing may be
appraisal
used to pay closing cost.
• No appraisal fee

With • 97.75% of appraised value is
maximum base loan amount (LTV)
appraisal • Closing cost may be financed


FHA Mortgage Insurance Premiums
FHA has both upfront and monthly mortgage
insurance premiums with vary rates depending
on
• mortgage term (15 vs 30 year)
• loan to value
• loan size (FHA jumbo has higher premiums)
Some of the existing upfront mortgage
insurance premium may be credited towards
closing cost.

Reduced mortgage insurance premiums are available for FHA
Streamline refinances IF the existing FHA loan was guaranteed by HUD
prior to June 1, 2009.

HUD guarantees FHA loans AFTER closing. Sometimes several weeks.
Your local mortgage originator can check to see when your FHA loan
was guaranteed. (I can help if your home is located anywhere in
Washington state).

Borrowers with “high balance” or FHA “jumbos” will want to start their
FHA refinance prior to June 11, 2012 if they do not qualify for the
reduced premiums as HUD is increasing the mortgage insurance
premiums an additional 0.25% at that time. In King, Pierce and
Snohomish Counties, FHA jumbos are base loan amounts from
$417,000 to $567,500.


30 year fixed FHA. Effective June 11, 2012, FHA High Balance/Jumbo loans
will have an additional 0.25% bps added to the annual mortgage insurance
premium. In King, Pierce & Snohomish Counties, high balance loan amounts
currently range from $417,001 to $567,500.
< or = 95%LTV >95%LTV
Guaranteed PRIOR to
Guaranteed after Guaranteed after 6/1/2009
6/1/2009 6/1/2009
• Upfront: 1.75% • Upfront: 1.75% • Upfront: 0.01%
• Annual: 1.20% • Annual: 1.25% • Annual: 0.55%

Upfront mortgage insurance premium may be financed or paid for as closing
cost.

Annual mortgage insurance is part of the monthly mortgage insurance
premium. Multiply the annual mortgage insurance amount by the base loan
amount and divide by 12 to determine the monthly amount.


30 year fixed FHA and base loan amount is “high balance” or “jumbo”. In
King, Pierce & Snohomish County, this applies to loan amounts $417,001 to
$567,500 EFFECTIVE ON CASE NUMBERS OBTAINED JUNE 11, 2012 AND
LATER.

< or = 95%LTV >95%LTV
Guaranteed PRIOR to
6/1/2009 6/1/2009

Upfront mortgage insurance premium may be financed or paid for as closing
cost.



15 year fixed FHA. Effective June 11, 2012, FHA High Balance/Jumbo loans
will have an additional 0.25% bps added to the annual mortgage insurance
premium. In King, Pierce & Snohomish Counties, high balance loan amounts
currently range from $417,001 to $567,500.
< = 90% LTV* >90%LTV
Guaranteed PRIOR to
6/1/2009 6/1/2009
• Annual: 0.35%% • Annual: 0.60% • Annual: 0.55%

*No annual mortgage insurance is required when the mortgage term is 15
years or less and the LTV is 78% or less.



15 year fixed FHA and base loan amount is “high balance” or “jumbo”. In
King, Pierce & Snohomish County, this applies to loan amounts $417,001 to
$567,500 EFFECTIVE ON CASE NUMBERS OBTAINED JUNE 11, 2012 AND
LATER.

< = 90%LTV * > 90%LTV
Guaranteed PRIOR to
6/1/2009 6/1/2009

*No annual mortgage insurance is required when the mortgage term is 15
years or less and the LTV is 78% or less.



FHA Streamline Refi Rates
effective 4/11/2012 with 720 plus mid credit scores based on $400,000 loan amount
30 Year Fixed
Guaranteed after 6/1/2009
• 3.750% (apr 4.743%) with a PIMI (principal,
interest and mortgage insurance) payment of
$2,298.06.

30 Year Fixed
Guaranteed PRIOR TO 6/1/2009
• 3.750% (apr 4.141) PIMI payment of $2,034.45.

NOTE: 30 Year Fixed quotes based on loans guaranteed prior to 6/1/2009
are priced with a longer lock since case numbers will not be available until
June – however applications and locks can happen NOW w/delayed closing.

FHA Jumbo Streamline Refi Rates
effective 4/11/2012 with 720 plus mid credit scores based on $565,000 loan amount
30 Year Fixed – Case # prior to June 11, 2012
• 3.750% (apr 4.589) with a PIMI payment of $3,222.66.

30 Year Fixed – Case # June 11, 2012 or later
• 3.750% (apr 4.732) with a PIMI payment of $3,339.38.
30 Year Fixed
Guaranteed PRIOR TO 6/1/2009
• 3.875% (apr 4.214) with a PIMI payment of 2,913.94.

NOTE: 30 Year Fixed quotes based on loans guaranteed prior to 6/1/2009 are
priced with a longer lock since case numbers will not be available until June –
however applications and locks can happen NOW w/delayed closing.

Preparing for your
FHA Streamline Refinance
• Obtain a rate quote detailing your scenario.
If your property is located in Washington, I can help you!
• Find your FHA Case # and provide it to a local mortgage
originator to determine when HUD guaranteed your loan
IF you closed prior to June 2009.
• Gather important documents that may be required:
– Most recent W2s from previous year
– Most recent paystub
– Most recent bank statement/asset account (all pages)
– If self employed, your last 2 years complete business and
personal tax returns.
– Social Security Cards


What Now? Visit
www.mortgageporter.com and…


Tips for your FHA Streamlined Refi
• Plan on bringing in one months mortgage
payment with your FHA streamlined refinance if
you are not financing closing cost.
• You will most likely not have a mortgage payment
due until the next month.
• Plan on closing towards to end of the month to
reduce paying double interest (FHA loans are not
always prorated at payoff)
• You will receive a refund of your existing reserve
account from your current mortgage servicer
about 3-4 weeks after closing.

About Rhonda Porter
Rhonda is a Licensed Mortgage Originator who has
been helping people with their mortgage needs at
Mortgage Master Service Corporation since April 2000.
She writes a nationally recognized blog, The Mortgage Porter,
aimed at helping consumers have more information about the
mortgage process.
She is available to originate residential mortgages for homes
located in Washington State, where she holds her NMLS license.

CLA 44045


FHA Streamline Refinance

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