If i want to change my 30-year FHA FRM to 15-year, should I do a streamline FHA refinance or standard?

Under FHA rules, if you do not save more than 5% on your mortgage payment, then you must fully qualify, which means tax returns, w2's and pay stubs.. However you can still streamline and no appraisal will be necessary, that's a $450 savings... Also, depending on how much equity you have, you might consider a conventional loan.. the rate would be slightly higher, but if you have 20% equity or more, you will not need mortgage insurance, and there's no upfront premium either.. if your current FHA loan was issued prior to May 2009, then there is reduced monthly and up front premiums available to you.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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

Hi RKreiger,Depends on the overall situation such as income and/or the amount of equity in the property. Please call me at 949.491.8607 or email me at jolson@afnmortgagelenders.com to see what might be the best option for you. We are a direct lender mortgage lender that has some of the lowest pricing in the Nation and I am personally licensed in the state of NJ, thank you.Sincerely,Jesse Olson

It depends on what you have. If your loan was endorsed by FHA prior to June 1, 2009, then FHA has special MIP premiums for you that may make a streamline more attractive. If you have more than 20% equity, I would look at going conventional to avoid Mortgage Insurance altogether. The best course of action is to take your scenario to a local Mortgage Banker/Broker to learn which options make the most sense for you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Response to William of Velocity:Actually, on an FHA Streamline, you do not need to lower the payment 5% IF you are reducing the term of the loan from 30 year to 15 year...

We are direct lenders here in Nj. we specialize in FHA loans and are able to complete a Streamline for you within 3 weeks and we can pay your closing costs. Contact me at your earliest convenience for a free consultation. Peter Botros 908-933-0253 ext 319, 347-231-4444 cell, or if you prefer email, my address is PBotros@OmegaLoans.net

Lots of good advice on here from everyone else. The only thing I can contribute as a possible deciding factor is, can you pay your closing costs out of pocket? If you wish to do that then streamline might be good for you. In my experience, borrowers aren't quite able to borrow enough to cover much of anything with the way a streamline is calculated, and regardless of what you've heard, no matter what, there are usually fees for something. If you do not have the money to pay out of pocket, consider a standard FHA refinance to cover the costs by increasing your loan amount slightly. Just remember, your payment is probably already going to go up with the decrease in years, so weigh that in your decision as well. Should you wish to discuss your options further, or perhaps see actual numbers on paper, feel free to shoot me an email. jamie@ronwohlfarth.com I am also licensed in NJ. Good luck with your decision!

In response to Jesse Olson... if the borrower wants to reduce his term from 30 to 15 years, he must fully qualify for the new payment (I'm assuming his payment will go up, not down) since he will not meet the Net Tangible Benefit set by FHA and verified through HUD 4155.1 C.6.5a, which states.... The lender must determine that there is a net tangible benefit to the borrower as a result of the streamline refinance transaction, with or without an appraisal. Net tangible benefit is defined as a 5% reduction to the principal and interest (P&I) of the mortgage payment plus the annual mortgage insurance premium (MIP), or refinancing from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage. Notes: A reduction in the term of the mortgage is not a net tangible benefit. The borrowers can still refinance using the streamline process and no appraisal will be necessary, however they will have to prove they can afford the payment by providing tax returns, w2's and pay stubs, since the guideline clearly states that A REDUCTION IN THE TERM IS NOT A NET TANGIBLE BENEFIT... Did you not fully understand my previous response?? 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