U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-02-2015, 01:35 PM
 
3,168 posts, read 4,836,349 times
Reputation: 2590

Advertisements

Quote:
FHA Mortgage Insurance can be written off on your Schedule A of your income taxes (not always, but a lot of the time). I'm sure you don't want to go into your finances too deeply here, but if you use a CPA, check on this before spending time and money on a refinance. There are some rules involved, and Texas is a very Singular Animal in the world of mortgage, but you might look into this before taking action.

Also, I don't think we know what your current rate is on your existing loan, and how that might compare to a new loan. So, to flesh this out: what is your current rate, loan balance, and how much do you think the house is worth today?
That's a good point. We don't have a CPA, though.

Current rate 3.75% (new would be 4%), $162k loan balance, $215-220k worth today.
Reply With Quote Quick reply to this message

 
Old 06-02-2015, 01:39 PM
 
3,168 posts, read 4,836,349 times
Reputation: 2590
Quote:
Since you're staying for only a few years, how about an ARM?
I hadn't thought about it--they always seemed like a no no product, but maybe not if we are going to be out in 4-6 years? Still makes me wary, but I honestly don't know the details of how they work.

FWIW, there is always a small chance of us staying if something very drastic happened (or keeping the home as a rental) but it isn't likely. To keep it high level, our situation is we are here for a medical residency (bought in med school) and are both working right now. We have small children and I may choose to stay home soon. The mortgage on comfortable on one income, but should I choose to leave my job, wiggle room would help as our budget will be tight until residency is finished. In 4-6 years we will either be moving for a fellowship/job or staying here, but ready to move to a home that better accommodates our growing family.
Reply With Quote Quick reply to this message
 
Old 06-02-2015, 01:47 PM
 
3,325 posts, read 7,287,541 times
Reputation: 4110
Quote:
Originally Posted by mSooner View Post
That's a good point. We don't have a CPA, though.

Current rate 3.75% (new would be 4%), $162k loan balance, $215-220k worth today.
Please, at the very least, look into writing off the Mortgage Insurance, it would seem that you may well fit the guidelines to do this.

But: if your numbers prove out, You can likely refinance into a Conventional Loan with no mortgage insurance.

The refinance would allow you to "skip" one payment, you would get a refund in the balance of the existing escrow account, and your payment would drop by (a little less than) the amount of your monthly mortgage insurance. So, a little short-term breathing room.

Yes, you would be "re-starting" the clock with a 30 year refinance. But with a 30, you'd leave your debt ratio open for greater credit capacity, and you can go with bi-weekly payments or send extra $$ in the payment when you want to, and make up for the re-start of the clock.

Not trying to push you in either direction, just trying to lay out the options for you.
Reply With Quote Quick reply to this message
 
Old 06-05-2015, 04:14 PM
 
5,691 posts, read 7,300,533 times
Reputation: 3207
Just want to clarify that that this has nothing to do with Wells Fargo, it's just the FHA rules (at least at the time you got the loan) that it is based solely on the original purchase price.

mSooner, I do have a question for you though, did they say they would remove it (after 5 years) at 80% or 78%? My understanding was that it would automatically come off at 78% but could come off at 80% if you request it.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top