01-21-2013 02:58 PM
Does anyone know if you can streamline from a 30-year fixed to a 15-year fixed ? The 15 year monthly payment will be more than the 30 year montly payment BUT the 15-year interest rate would be less than the 30-year interest rate.
No clear answer from searching the internet.
01-21-2013 11:40 PM
Correct, a 5% reduction in payment is required, even though you are reducing the term.
As long as your property as a little bit of equity, you can do a normal FHA to FHA refi and drop to a 15 year term. It will require income qualification as well.
01-23-2013 01:00 PM - edited 01-23-2013 01:01 PM
added a few more links for people looking at fha streamline refi.
the q/a references ML #'s or the hud 4155.1 handbook, if you search "hud ML 12-5" for example, you can find the pdf with details for that specific topic.
I had to research this recently when looking at a refi of a fha loan on former owner occupied, but now currently investment property. It can be confusing, but all the details are there.