FHA Stramline Refi - Do it

[Becky Comish]

Here's what we're being offered by the mortgage broker we work with. Is this worthwhile to do? - Our current payment will go down from $1287 to $1154 - so about $134 in cash flow savings. - no closing costs. Our broker is offering to pay the $3167 in closing costs in exchange for a bump in interest rate. - new interest rate will be 3.875%. Old rate is 5.25%. - the mortgage insurance premium is actually increasing from $53.60 to $79.91. And now it sticks for the life of the loan (whereas our old insurance premium would have sunset in 2020. This is a 2-family, and is our lowest cash flow building so we really care predominantly about the cash flow. We're looking at a savings of $134 per month for now and $80 per month after 2020 (when the mortgage insurance premium would have sunset. My biggest question is whether the 3.875% interest rate in exchange for no closing costs is worthwhile, or if we should shop around.