CEMA for an FHA ARM?

Enough acronyms?

I'm in the process of doing a streamline re-fi on my 30 year 7% FHA with Wells Fargo (original bank). I decided to just use the same attorney that Wells Fargo is using. They called me a couple of days ago and said that I should do a CEMA so that I'll only have to pay taxes on ~$4,000 instead of $201,000. Sounded good.

I got a call from Wells Fargo today and they said that they wouldn't be able to do it because the computer or whatever won't accept it for my new loan (a 4.25% 5 year ARM).

Has anyone else been in this situation before?

Re: CEMA for an FHA ARM?

They can't do the loan or the cema? I know FHA mortgages are tricky. The CEMA is used so you don't have to repay the NYS mortage tax.

What if you refied using a different product? 4.25% is great, but who knows where rates will be in 5 years. Also. it is probably possible to get somewhere in the 5's fixed. We just refied for a 30 year fixed @ 5.375.

GL!

PS we also used Wells Fargo, let me know if you want our contact!

Re: CEMA for an FHA ARM?

They can't do the CEMA.

I think I can do a streamline FHA for 5.5% fixed, but that's only a savings of ~$200/month and I could really use the ~$400/month savings since my hours have been reduced at work. I'd normally stay away from an ARM, but I do not plan on staying at this condo for long... as soon as the market rebounds, I'm getting as far away from it as I can.

What sucks is that now their 30 year 5 year ARM is at 3.875% when I locked in at 4.25%. :p