PMI?'s and Does my FHA streamline REFI look ok? (loan, interest rate)

[mj-PAC]

I have a couple ?quick? questions for anyone in the know about FHA.
I'll put the questions on top:

1. He tells me that my PMI will drop off in 11 years (78% LTV) as I am "grandfathered" in for my 3 family 2008 FHA loan.
Online sources seem to indicate it is for the life of the loan.
???? This matters for the APR

2.Offer is 30yr FHA streamline @ 3.5% APR 3.9% Am I missing any extra charges? Is this rate and APR seem ok? (I understand PMI makes up a large majority of jump from 3.5-3.9%

I see the average FHA is 3.3%?
http://www.mortgagenewsdaily.com/mortgage_rates/

3. Must I pay 1102 and 1110 settlement fee/CPL?


Details below if interested

Live in PA
I am refinancing my
$175K FHA 6% loan on my 3 family (primary home) closed in 11/08.
$160K current principal
I am looking to do a streamline FHA due to multi-family appraisal and LTV issues. I can explain if needed.

Due to my closing year I am fortunate to have only 0.55 PMI and virtually NO UFPMI ($16).

The "direct lender" I'm working says "we charge no origination, application, or processing fees."
He seems like a nice guy, too the point, not too pushy. But maybe he's jus that good.

Not like the dozens of calls I got after I put my info into lending tree...that was a mistake.

He is offering
30 yr @ 3.5% w a lender credit of $1069

GFE he sent me is clear sort of...
GFE A (origination charges) -$1069
B $3056
A+B $1987

TIL
APR
3.911%
Finance charge $109K
Amount Financed $160K Total $269K

Itemization:
Paid to "Other" Totals for
1002, 1004, insurance and tax reserves -> $800
1104, 1109, 1202 title stuff -> $1370 PA mandated

Total Prepaid finance charges
Totals for 901, 902, UPMIP and payment interest -> 496
1102 and 1110 Settlement and CPL ->380

802- Fees paid by lender on behalf of borrower ($1069)

[mj-PAC]

Anyone?....anyone?

[rv2811]

Pmi is not for the life of the loan since it was endorsed beforeJune 2009. Your paying a little higher rate for the lender credit to help with closing costs. The 3.5% is a really great rate. The apr is the real interest rate because of the lender credit and other things I'm not sure of. Lender credit is just a new word for ysp or how broker's get paid.

[mj-PAC]

Thanks so much rv2811 for your response....i realize it was a long post
thanks for reassuring me
I see he is about on par Interest Rates Today - Current Interest Rates - MarketWatch
so I guess he is making the lender credit then? $1060....thats fine

one more ?
he is a direct lender "we dont change lender fees"
I'm NOT in a tight spot for closing costs....only $1900 on his GFE

Do u think he would go to 3.25 if I pay the "lender credit"?

Or am I pushing it b/c this is unlikely given his business model?

[rv2811]

I would try to get the 3.25% rate if possible. If this home is long term home then go for the lower rate. If not do the no cost loan. Well not really no cost... Between the 2 rates it's about $8000 difference in interest over 30 years. A direct lender does their own in house underwriting and possible funding of the loan vs a broker who is just a middle man. I'm sorry a direct lender does not have to disclose the ysp( lender credit, rate credit) while a broker does. So the only way to tell how much money the direct lender is making. Contact a mortgage broker and get a gfe from them because they have to disclose how much ysp they are receiving.Ysp is now called lender credit or rate credit etc. Either way you are getting really great rates. Good luck.

[mj-PAC]

rv2811...thanks again for your insight!... I have had quite the steep learning curve trying to figure exactly how the broker-lender world works with ysp, rate sheets, etc...and finally I feel somewhat confident

thanks for mentioning the YSP... a little youtube learning and analysis of rate sheets and I think I sort of understand pricing

I actually got a hold of their wholesale lender division rate sheet and kind of figured what he/they were making sort of?
45d lock 3.5% was 102.589= 0.02589%- 0.00375 (rate adjustment) - 0.006619% (lender credit) = 0.01552= 1.5%= ~$2500

Is my math wrong? Am I missing something?
That seems like a lot?
What is adequate commision? $1000

I signed the GFE/TIL yesterday b/c thats was the good till date...I called him up and told him I wanted a 3.25%. He sounded gruff and said "Are you shopping the loan around...people are busting themselves to close the loan, ". He said that if I wanted 3.25% I would have to pay $2K which would not make it worth it.

I have been working w another broker as well who is nice and keep calling me...He is more than happy to try to match my offer. I told him that I need a better offer as the first guy was the first. (and had been very nice till today)

I feel kind of bad playing them off each other?
I probably should have gotten a couple GFE at the same time right??? is there a code?