January 28, 2009 By Justin McHood
Many people that we speak with regarding the FHA streamline refinance program ask “how much in closing costs should we expect?” and when people ask, our general answer is “it depends.”
FHA Streamline Refinance Closing Costs:
With the FHA streamline refinance program, there are lender fees, title fees, possibly appraisal fees and other smaller fees such as the government recording fees. The sum total of these fees should be somewhere in the neighborhood of 2-3% of your loan amount.
FHA Streamline Refinance Closing Costs: No Out Of Pocket Closing Costs
With the FHA streamline refinance program, FHA will allow you to roll your closing costs into the loan. When you choose to have the lowest rate available and “pay” the closing costs, you can roll those closing costs into the loan. When you do this, it is
called a “no out of pocket closing costs” loan.
FHA Streamline Refinance Closing Costs: No Closing Costs
The other option for the FHA streamline refinance program is to have the lender pay your closing costs in exchange for a higher interest rate. If the lowest rate available is 5% on a given day, the lender may agree to pay your closing costs in exchange for you having a higher interest rate – for example it may be 5.5%.
Which is the better financial option for you – the FHA streamline with no closing costs or the FHA streamline program with no out of pocket closing costs? Be sure to speak with an FHA streamline refinance expert about your specific situation to find out! Call now to speak with an FHA streamline refinance expert about which closing cost option can save you the most money. 888-448-2669