Seeking Recommendations for FHA Refinance Lenders

Seeking Advice
1

I’m looking into refinancing my FHA loan and the options are overwhelming. Does anyone have any recommendations or advice on good lenders for an FHA refinance? I would really appreciate any insights you might have!

2

I’ve always used conventional loans, managing my own insurance and taxes for over 15 years. My loans remained with the original lenders throughout.

3

Going conventional might be a better choice. FHA loans tend to be more profitable for lenders. Refinancing your FHA loan means you’ll incur another 1.75% upfront mortgage insurance fee. Essentially, it feels like they’re just dipping into your equity.

4

You could choose any lender as FHA loans are generally straightforward to process.

5

Carter said:
You could choose any lender as FHA loans are generally straightforward to process.

Thanks for the input. Several lenders have suggested switching to a conventional loan, even though those rates are currently higher. It seems like they might not earn as much with FHA loans. I’m fairly new to this, so I’m still learning. My credit union doesn’t offer FHA loans, so I would need to go conventional with them.

6

@Bevin
Lenders generally make more from FHA loans. Those recommending a conventional loan might be considering your best interests. Remember, FHA rates effectively include an additional 0.55% due to mortgage insurance, so a 6% rate is actually more like 6.55%. Plus, you’re also paying about 1.75 points upfront to secure that rate.

7

@Bevin
Switching from conventional to FHA isn’t advisable. You’ll end up paying a 1.75% funding fee upfront and carry mortgage insurance for 11 years. Even if the rate appears slightly lower, the long-term costs are significantly higher.

8

@Avery
I’m currently on an FHA loan. A few lenders offered to switch me to a conventional loan, but I was unsure since the rates seemed higher at the moment.

9

Bevin said:
@Avery
I’m currently on an FHA loan. A few lenders offered to switch me to a conventional loan, but I was unsure since the rates seemed higher at the moment.

You could consider an FHA streamline refinance. What’s your current rate?

10

I had a positive experience with NBKC for an FHA streamline refinance. They also had lower fees compared to other lenders I looked into.

11

Blayne said:
I had a positive experience with NBKC for an FHA streamline refinance. They also had lower fees compared to other lenders I looked into.

Thanks for the recommendation!

12

Blayne said:
I had a positive experience with NBKC for an FHA streamline refinance. They also had lower fees compared to other lenders I looked into.

I’ve been in competition with NBKC for years, but I can vouch that they conduct their business honestly without resorting to any underhanded tactics.