FHA Streamline Mortgage: Are Fees Normal?
Nobody works for free. Banks don’t work for free, title companies don’t work for free, the government doesn’t work for free – and all of these entities are involved when you do an FHA streamline mortgage.
The key when doing the FHA streamline mortgage is to know who is paying the fees that are associated the loan — you or the lender. If you are paying, with the FHA streamline mortgage, it is possible to be able to roll them into your loan so that you have “no out of pocket closing costs” – which is different than “no closing costs”.
If the lender is paying for the closing costs with your FHA streamline mortgage, that would be a true “no closing costs” loan. Why wouldn’t you want to do a “no closing costs” loan with an FHA streamline mortgage? Because you will be put into a higher interest rate in exchange for the bank paying your closing costs.
Depending on your situation, the no closing costs option can make sense when doing an FHA streamline mortgage – but you need to weigh your options carefully. Most people enlist the help of a FHA streamline mortgage expert to help them decide which is a better option for them – speak to an expert now at 888-448-2669.