Should I do a stream line FHA refinance on my fourplex

[Carlos Gonzalez]

Don’t know if this is the right place to get advice from this topic but here I am.

I bought a fourplex FHA last September and currently living there.

I got an offer to refinance my property over the mail saying that I qualify for a Streamline FHA Refinance and will get my mortgage interest rate from 4.75 to 4.15. I called the number and the guy said that it would lower my mortgage payment by around $80 per month refinanced for 29 years.

He says that streamline refinance comes at not cost for me and that I would get the escrow balance and I would not have to pay my mortgage payment for a month while they sell my mortgage to a different bank I guess and I would get to keep all the cash flow from the other 3 units. It’s about 6-7K that I would get to keep if I do this aside from lowering my interest rate. In less than five years I plan to refinance it to a conventional loan with 25% equity.

My question is should I do this or not? How would this affect my taxes for next year?

Any advice is welcomed guys

Thanks in advance

[Zack Karp]

If you are at 4.75%, then yes you should do a streamline refi, but only if you don't need to refi to Conventional right now to free up your FHA eligibility for another property.

The streamline refi is free when they give you a slightly higher interest rate to cover all the closing costs.  This is a standard practice and is the right move if you plan to sell the property or refi again within the next 5 years.

Best of luck!