Really need help understanding...

[FHA T]

What is the name of your state? GA

I went with an FHA loan in July of 2006 when I purchased my home, so obviously I didn't put any money down. The lender, Wells Fargo, added approximately 6K to the total cost of the house for reasons I can't remember (yeah I know.. responsible right?) but I do recall something about the agent saying that this is how "they handled FHA loans" and that the seller actually paid the difference (I think.) Our agent never had any objection so we trusted her and to tell you the truth, the whole process was so overwhelming I just wanted to get it over with. Recently I got mail from "CPA mortgage" stating that "due to a 2004 law signed by President Bush eliminated the requirement that FHA-HUD hold in escrow the mortgage premium of federal mortgages which effectively ends the FHA-HUD refund program." They're saying I'm entitled to almost 4K of the "mandatory refund." They also state that I might be eligible for removal of the monthly mortgage insurance premium.

My question is this.. is this just mail scam or does it have merit?

I'm also interested in re-financing since rates are going down, but I still don't have money to make a legitimate down payment. Do I still have options?

Many, many thanks in advance to anyone that can help.

[ForeclosureHelp]

FHA T,

While it may not be a scam, it really is a marketing letter trying to get you to call and refi with them. If you are interested in refinancing, check with your original lender first as they may offer the best terms since you are already a good customer.

As far as down payment goes, you don't need to do another down payment to refi. You may even get away with zero dollars out of pocket! Check around and see who is offering the best programs.

Robert

[HUD-1]

Definitely a not-so-straight-forward marketing ploy. For an FHA loan originated in 2006, you paid a 1.5% upfront MIP. If you refinance into a conventional or non-FHA loan, you will not get any refund of the MIP. If you refinance into an FHA within the first three years, you will be entitled to a partial refund of the MIP.

Monthly FHA MIP will terminate when your loan to value ratio reached 78%, based on your original appraisal.

[Grandma's house]

You need to do a "streamline F.H.A." refinance and settle for nothing less. Going from an F.H.A. to another F.H.A. will save a lot of money in c.c.'s (closing costs) further, you won't even need income verification and often not even an appraisal. In fact, since you did not put anything down in 2006 then chances ARE your value has dropped in today's market and a "streamline F.H.A." is your only chance anyway because your loan to value exceeds 100%more than likely. Also F.H.A. will NOT allow the standard fees to be charged to you that a broker etc...otherwise could in the upfront F.H.A. loan you already got.
Also...make SURE you get the facts. Today you should get 5.75% or even less 30 yr. fixed. If anyone tells you more??? They are brokers making money called ysp (yield spread premium) by upselling you yet a higher rate they make cash on the back side and often do not have to disclose this to you depending on if they are table funding the loan to you as the lender.