Who Pays for an FHA Streamline Refinance?
The borrower pays the closing costs, but there are several ways to minimize or eliminate out-of-pocket expenses:
Typical Costs:
- Closing costs typically run 3-5% of your loan amount (so $3,000-$7,500 on a $150,000 loan) The Mortgage ReportsMortgage Research
- You save on appraisal fees (about $500-$1,000) since no appraisal is required The Mortgage ReportsMortgage Research
- You still pay the 1.75% upfront mortgage insurance premium (UFMIP) FHA Streamline Refinance | Rates & Requirements for 2025
How to Get “No Cost” Streamlines:
- Lender Credits: Some lenders offer “no cost” refinances by charging a slightly higher interest rate and using that premium to pay your closing costs Streamline Refinance Your Mortgage | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
- Service Release Premium: Lenders receive thousands in fees when they sell your loan to investors – you can negotiate for them to apply this toward your closing costs FHA Streamline Refinances: Negotiate No Closing Costs
- UFMIP Refund: If you refinance within 3 years of your original FHA loan, you get a partial refund of your original upfront mortgage insurance fee, reducing the total amount needed FHA Streamline Refinance | Rates & Requirements for 2025
Important Restriction:
Unlike other refinances, FHA rules prohibit rolling closing costs into your loan amount The Mortgage ReportsHUD – so you either pay upfront or negotiate a no-cost structure.
As someone with experience in both real estate and lending (NMLS #1847894), you know that negotiating with lenders on fees is always worth trying, especially when rates are competitive and lenders want your business! contact NIKI today Here:
The Bottom Line: FHA Streamline Refinances are NOT free, but they can be very affordable and sometimes have “no out-of-pocket costs” depending on how your lender structures the deal.