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Old 03-26-2015, 06:31 PM
 
Location: Austin
7,089 posts, read 16,957,585 times
Reputation: 9522

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Quote:
Originally Posted by Ravine View Post
Thanks. Would have been nice if the broker at Chase had shared that tidbit when we went over all the numbers, as opposed to telling me it would be a "cake walk" and all I had to do was prove increase in value.
For some mortgage people, it's all about capturing you as a client first, and then he probably would have suggested you just refi into a conventional for X rate and Y fees.
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Old 03-26-2015, 07:25 PM
 
26 posts, read 32,223 times
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Our rate is 4.3. We are planning on selling in a year or two, and were hoping to free up that pmI money and to help pay down some bills with that future real estate transaction in mind. We talked about a refi, since that's another route, and when I mentioned the move he really pushed the 5 1 ARM, which I have zero interest in. I'm too conservative for that! I'm not sure we would get a better rate. Our credit isn't quite as high as it was when we purchased (775), it's in the 720 range now. We have two kids in daycare full time, so some bills have added up. We aren't in dire straits, it just would have been a nice extra $140 a month. It may just mean we move closer to 2 years from now than one, when our daughter moves into public school and it frees up her monthly tuition. We were just looking to get a bit of a head start. Slow and steady wins the race, right?
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Old 03-27-2015, 08:23 AM
 
Location: Annandale, VA
5,098 posts, read 4,135,293 times
Reputation: 4199
Quote:
Originally Posted by reed303 View Post
PMI is/was deductible, with some limits, for mortgages issued after Dec 2006.

See the Line 13 instructions for IRS 1040 Schedule A, and the worksheet at bottom on page A-9 at :

http://www.irs.gov/pub/irs-pdf/i1040sca.pdf

My income is too high to allow any deduction.
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Old 03-27-2015, 08:58 AM
 
4,548 posts, read 11,576,301 times
Reputation: 3069
Quote:
Originally Posted by Ravine View Post
Our rate is 4.3. We are planning on selling in a year or two, and were hoping to free up that pmI money and to help pay down some bills with that future real estate transaction in mind. We talked about a refi, since that's another route, and when I mentioned the move he really pushed the 5 1 ARM, which I have zero interest in. I'm too conservative for that! I'm not sure we would get a better rate. Our credit isn't quite as high as it was when we purchased (775), it's in the 720 range now. We have two kids in daycare full time, so some bills have added up. We aren't in dire straits, it just would have been a nice extra $140 a month. It may just mean we move closer to 2 years from now than one, when our daughter moves into public school and it frees up her monthly tuition. We were just looking to get a bit of a head start. Slow and steady wins the race, right?
See if you can refinance to a fixed rate at or below your current rate with $0 closing costs (all closing costs lender paid).
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Old 03-28-2015, 07:28 AM
 
5,691 posts, read 7,297,743 times
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Maybe I missed it, but OP is your loan even an FHA?

I thought FHA loans were the only ones that had the 5-year requirement...well before they started making the MIP (what FHA calls PMI) permanent.

If you have an FHA, my understanding is the loan to value ratio is only based on the original purchase price, and that after the 5 years, MIP will automatically come off at 78% LTV, but you can request to have it removed at 80%.

If you have a conventional loan, I think you should be able to request to have it removed if you are at 80% based on the current value but would need an appraisal. Or as Tim said you can just refinance to a completely new mortgage. If the broker you talked to was mainly just pushing the 5/1 ARM, talk to someone else.
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Old 03-28-2015, 08:56 AM
 
Location: MID ATLANTIC
7,613 posts, read 17,695,258 times
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Quote:
Originally Posted by GoPhils View Post
Maybe I missed it, but OP is your loan even an FHA?

I thought FHA loans were the only ones that had the 5-year requirement...well before they started making the MIP (what FHA calls PMI) permanent.

If you have an FHA, my understanding is the loan to value ratio is only based on the original purchase price, and that after the 5 years, MIP will automatically come off at 78% LTV, but you can request to have it removed at 80%.

If you have a conventional loan, I think you should be able to request to have it removed if you are at 80% based on the current value but would need an appraisal. Or as Tim said you can just refinance to a completely new mortgage. If the broker you talked to was mainly just pushing the 5/1 ARM, talk to someone else.
Lol, I was wondering the exact same thing, where did FHA come from? (subtle nuance, "PMI" indicates conventional, "MIP" typically indicates FHA). On a conventional loan, the only guaranteed removal is loan balance 80% of original purchase price or loan balance paid down to 78% of original purchase price. That said, all lenders are now required to have a written policy for PMI removal other than these two methods. Most lenders will permit a new appraisal for PMI removal, at the borrower's bexpense, from a list of approved appraisers. The only exception I have seen is for declining markets.

If you are fairly certain you are headed out in a few years, definitely look at a no cost refi. For even more bang for the buck, you may want to look at a long term ARM to maximize savings to pay off other debt (but not if you are the type to lose sleep).
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