Do I Have To Pay Closing Costs On A FHA Streamline Refinance?
FHA Streamline programs help homeowners to reduce their interest rate and save money without a credit check, income check, or appraisal.
Closing costs for the FHA Streamline program are about the same as other refinance programs, except you don’t have to pay for an appraisal which can save you $500-$1,000.
You may also have to pay a portion of your property taxes or insurance depending on your closing date and your county’s collection schedule.
Keep in mind that you will also get a refund of the tax and insurance funds held in escrow held by your current lender.
If you purchased your house within the past 3 years of applying for your FHA Streamline, then you may be entitled to a refund of some of your upfront mortgage insurance premium.
FHA loans all carry 2 forms of mortgage insurance premium: Upfront and Annual
The upfront premium is a one time fee paid at closing equal to 1.75% of the loan. The annual premium, which is 0.8 - 0.85% of the loan amount, is paid over the lifetime of the loan.
The refund amount is determined by how long ago the current loan was opened and when the new FHA refinance loan closes.
The refund amount decreases with each month that passes.
For example, if you refinance within 12 months of buying your house you may be refunded as much as 60% of your original upfront mortgage insurance.
After 30 months you’ll only receive a refund of about 20%.
You will also pay a new upfront mortgage insurance premium with the new loan.
However, this cost can be wrapped into the new loan and doesn’t need to be paid out of pocket. No other closing costs can be included in the loan.
See how much you could save with an FHA Streamline refinance.