FHA 203k to FHA Streamlined

[Brian Loibl]

I have been house hacking for the past 6 months and I recently received information on FHA streamlined in the mail. I talked with the lender and with the drop in interest rate would save me roughly $200/mo and I would have to bring $2300 at closing which they describe as my mortgage payment so its not really an extra out of pocket cost? If I consider the $2300 an actual closing cost, the refinance would pay for itself (saving $200/mo) in a year. It seems almost too good to be true so I thought I would reach out to the BP community to see if anyone has experience with this and can shine some light on any of the pitfalls that I may be overlooking or not experienced enough to hone in on.

[Philip Ganz]

@Brian Loibl FHA streamline is loan of last resort - Monthly PMI last for the life of the loan and the upfront MI you restart - NOT GOOD!

You should seek conventional financing.