Many people wonder if there is such a thing as a “no cost FHA streamline refinance” or a “free FHA streamline refinance”. The good news is yes, there is a “free” FHA streamline refinance … kind of.
The FHA streamline refinance program offers a choice for people who are interested in it to accept a slightly higher interest rate in exchange for a lender covering all of their closing costs associated with the transaction.
Does That Mean It Is Free?
Just because you might not pay any closing costs, it doesn’t mean that your FHA streamline was “free” – it simply means that you have chosen (possibly wisely) to amortize the costs associated with the FHA streamline over a 30 year period rather than pay them up front or roll them into the loan.
If You Could Make The FHA Streamline Free, Should You
The real question is “does it make sense to pay your closing costs when doing an FHA streamline or should you roll them into the new loan?” and the answer may surprise you: it depends. Each situation is different, so the best way to get the right answer for your particular situation is to make sure that you are working with the best loan officer possible.
Finding a great loan officer who can help you figure out if it makes sense to roll your closing costs into the new loan is easy – start right here! Simply take 2 minutes and fill out a form to be connected to with a loan officer who can answer your questions about fha loans.
