Posted on: 11th Sep, 2010 10:38 am
For an FHA streamline refi, is the upfront FHA mortgage insurance premium considered a part of the closing costs? My GFE shows the MIP and prepaid interest are the only fees I will be paying (lender to pay for escrow fee, title fee, and administration fee). The interest rate I was quoted is 4.5% but my APR will actually be 5.31%. How do they figure?
My current scenario is 5.5% 30 yr fixed $288k loan. Will refinancing to 4.5% same term be worthwhile? I've been in my home for two years and am planning to stay for at least another 5.
Thanks in advance.
My current scenario is 5.5% 30 yr fixed $288k loan. Will refinancing to 4.5% same term be worthwhile? I've been in my home for two years and am planning to stay for at least another 5.
Thanks in advance.
Hi Guest,
If you pay the upfront FHA mortgage insurance premium, it will be considered as a part of the closing cost. As far as your APR is concerned, you should contact the lender and ask him to explain the fees. This will help you understand the fees in details. If you are planning to stay in the property for 5 years, then, in my opinion, it would be a good option to refinance the mortgage at a low interest rate.
If you pay the upfront FHA mortgage insurance premium, it will be considered as a part of the closing cost. As far as your APR is concerned, you should contact the lender and ask him to explain the fees. This will help you understand the fees in details. If you are planning to stay in the property for 5 years, then, in my opinion, it would be a good option to refinance the mortgage at a low interest rate.