Will Someone Explain to Larry How the FHA Refinance Program Works

Larry has the FHA streamline refinance program all wrong. He is saying that it is helpful becuase the FHA streamline refinance program can be done without an appraisal. The loan officer who compares the FHA refinance to her dog food is suggesting that the fha lenders do not know how to calculate and FHA rate at the 5% payment amount without an appraisal. I will have to revist the FHA guidelines soon to determine that the FHA refinance is a helpful program when an appraisal is not required. Please post a comment to let me know if I am understanding the FHA refinance program correctly and if 5% is a nice rate or should I wait for a 4% rate on teh FHA streamline refinance program?