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Old 12-11-2013, 02:22 PM
 
Location: New York
2,251 posts, read 4,165,968 times
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Quote:
Originally Posted by Dallas_Guy View Post
on 30yr fixed loans, the mi is now for the life of the loan.
Confirmed - FHA M/I for lifetime of the loan......
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Old 12-22-2013, 12:06 PM
 
Location: Currently working in many US states
5 posts, read 6,795 times
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You are going to also pay a large Upfront premium with that FHA loan (UFMIP) and now the MI remains for the entire term of the loan.
You should be able to do a refi after 210 days, but will most likely need 2 appraisals done.
Make sure to look into Homepath (Fannie Mae) houses since many of these have special financing.
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Old 12-22-2013, 03:17 PM
 
Location: Southern California
4,350 posts, read 4,942,333 times
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Quote:
Originally Posted by HonestMortgageGuy View Post
You are going to also pay a large Upfront premium with that FHA loan (UFMIP) and now the MI remains for the entire term of the loan.
You should be able to do a refi after 210 days, but will most likely need 2 appraisals done.
Make sure to look into Homepath (Fannie Mae) houses since many of these have special financing.
210 days? How did you come to this value?
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Old 02-11-2014, 08:18 PM
 
279 posts, read 111,149 times
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I read that the PMI tax deduction ended Jan. 1, 2014. Will this be reinstated? I ask because I refi'd into the FHA loan with higher PMI. I bought my house in 2009 with a FHA first mortgage at 5.25% and a conventional 2nd mortgage (about $5000 now). In 2013, I refi'd the 1st mortgage at 4.25% (still FHA). Now I have that higher PMI for the life of the loan. The refi only saved me about $100/month because of the higher PMI. I hope to sell my house in 2-3 years.

My questions here are

1. Do you think the PMI tax deduction will be reinstated?
2. Based on my info, can you think of any other steps I should take to lower my payments (refi or some other program)?
3. Or should I just keep the mortgages as they are until I sell?
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Old 02-12-2014, 01:07 AM
 
Location: Southern California
4,350 posts, read 4,942,333 times
Reputation: 2129
Quote:
Originally Posted by sockruhtese View Post
I read that the PMI tax deduction ended Jan. 1, 2014. Will this be reinstated? I ask because I refi'd into the FHA loan with higher PMI. I bought my house in 2009 with a FHA first mortgage at 5.25% and a conventional 2nd mortgage (about $5000 now). In 2013, I refi'd the 1st mortgage at 4.25% (still FHA). Now I have that higher PMI for the life of the loan. The refi only saved me about $100/month because of the higher PMI. I hope to sell my house in 2-3 years.

My questions here are

1. Do you think the PMI tax deduction will be reinstated?
2. Based on my info, can you think of any other steps I should take to lower my payments (refi or some other program)?
3. Or should I just keep the mortgages as they are until I sell?
Is there a reason that you went with a FHA versus conventional in 2013? Did your loan balance increase? Did your home value go down?
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Old 02-12-2014, 09:16 PM
 
279 posts, read 111,149 times
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Quote:
Originally Posted by thelopez2 View Post
Is there a reason that you went with a FHA versus conventional in 2013? Did your loan balance increase? Did your home value go down?
They said I had to refi into another FHA loan. Something about the bank or servicer that held the 2nd mortgage not wanting to release their position. I was told that I could only refi into a conventional if I paid off the 2nd mortgage.

The home value didn't go down.
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Old 02-13-2014, 08:30 AM
 
Location: Southern California
4,350 posts, read 4,942,333 times
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I don't know if they will make PMI deductible again.

It is very unusual for the 2nd to not subordinate but it is their right. When the lender said your couldn't go conventional without paying off the second, it makes me think that you don't have enough equity to do a cash out refinance. It sounds like you used a second to buy the home, last year I refinanced a 1st and 2nd into a new 1st 85% loan to value loan and it wasn't treated as a cash out refinance. You probably did a streamline with no appraisal, so you didn't know the value of your house.

I'd consider looking for another lender and checking on conventional rates and not paying PMI. An ARM would save you a lot monthly but your balance would probably go up quite a bit and you won't make your money back for a couple of years. It is very hard to offer suggestions without knowing the property value and loan amounts.
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Old 02-13-2014, 09:02 AM
 
279 posts, read 111,149 times
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Quote:
Originally Posted by thelopez2 View Post
I don't know if they will make PMI deductible again.

It is very unusual for the 2nd to not subordinate but it is their right. When the lender said your couldn't go conventional without paying off the second, it makes me think that you don't have enough equity to do a cash out refinance. It sounds like you used a second to buy the home, last year I refinanced a 1st and 2nd into a new 1st 85% loan to value loan and it wasn't treated as a cash out refinance. You probably did a streamline with no appraisal, so you didn't know the value of your house.

I'd consider looking for another lender and checking on conventional rates and not paying PMI. An ARM would save you a lot monthly but your balance would probably go up quite a bit and you won't make your money back for a couple of years. It is very hard to offer suggestions without knowing the property value and loan amounts.
Thanks! I bought in 2009 for 202k (the 2nd mortgage was about 7K and the first about 193K). For the refi, I did do the streamline without appraisal.

So you're saying that I could refi again into a conventional loan with no PMI? Even though the 2nd mortgage lender won't subordinate?

Right now, the value is about 215k (based on recent sales). My refi'd FHA with PMI 1st mortgage balance was 189k. It's currently 186k (at 3.625%). I pay about $190 in PMI each month. The conventional without PMI 2nd mortgage balance is currently 6K (at 5.25%). My payments go to VHDA.

Last edited by sockruhtese; 02-13-2014 at 09:11 AM..
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Old 02-13-2014, 12:50 PM
 
Location: Southern California
4,350 posts, read 4,942,333 times
Reputation: 2129
Quote:
Originally Posted by sockruhtese View Post
So you're saying that I could refi again into a conventional loan with no PMI? Even though the 2nd mortgage lender won't subordinate?
No, I was talking about possibly rolling the 2nd into a new first. At 3.625 I think you probably won't be able to do anything but I haven't run the numbers.

The lack of subordination will cause problems, I'd see you can do a FHA rate and term to get rid of the second, might need an appraisal, then in the future do a conventional 1st and new second, but you won't want to do cost loans since you are moving soon.

Did you do a 1 year arm at 4.25 and now it is 3.625 on the 1st?
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Old 02-13-2014, 02:55 PM
 
279 posts, read 111,149 times
Reputation: 289
Quote:
Originally Posted by thelopez2 View Post
No, I was talking about possibly rolling the 2nd into a new first. At 3.625 I think you probably won't be able to do anything but I haven't run the numbers.

The lack of subordination will cause problems, I'd see you can do a FHA rate and term to get rid of the second, might need an appraisal, then in the future do a conventional 1st and new second, but you won't want to do cost loans since you are moving soon.

Did you do a 1 year arm at 4.25 and now it is 3.625 on the 1st?
No, I never did an ARM. All fixed. I was mistaken earlier when I said I refi'd to 4.25. It was actually 3.625.
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