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Hi all. I was here awhile ago asking if I should refinance to get cash out of the equity to pay off debt. I decided not to go forward with that, but the mortgage broker says I should consider doing a refi just to rid of PMI and lower my payment. I have an FHA loan and he would convert it to a conventional.
My PMI is only $86 a month. My interest rate would only drop from 4.75 to 4.62%. The mortgage total amount would increase by about $12,000 (not sure of that is all closing costs or if there is some cash from that, I haven't discussed details with him yet as I want to get advice first). My monthly payment would decrease by $250 a month, which would help me pay down the debt I was going to refinance.
Is it worth paying the closing costs? In summary:
1. rate 4.75% to 4.62%
2. No more PMI, $86/month
3. payment decreased by $250/month
4. conventional mortgage vs FHA
I've been here a little less than 2 years, it's a 30 year mortgage.
Thanks!
You went with a mortgage broker? and not a bank? Once you get to 20% equity in your home, most banks will drop the PMI for you. If your mortgage is not with an FDIC bank, you may be out of luck and it will cost you.
I would advise you go to a good FDIC bank and see if they can get you into a good mortgage with no PMI first ... before 'scre*ing' around with a mortgage co. They will send out an appraiser. Then do the numbers. I was a Realtor for over 20 yrs and never sent anyone to a mortgage company.
You went with a mortgage broker? and not a bank? Once you get to 20% equity in your home, most banks will drop the PMI for you. If your mortgage is not with an FDIC bank, you may be out of luck and it will cost you.
I would advise you go to a good FDIC bank and see if they can get you into a good mortgage with no PMI first ... before 'scre*ing' around with a mortgage co. They will send out an appraiser. Then do the numbers. I was a Realtor for over 20 yrs and never sent anyone to a mortgage company.
It’s Nation One, is that a mortgage broker? They had our mortgage originally, it was who our realtor used and I didn’t realize there was a difference.
Someone told me and I thought mentioned earlier in the thread, that FHA mortgages are not the same as conventional when it comes to getting rid of PMI, not the case?
You went with a mortgage broker? and not a bank? Banks also act as brokers. Once you get to 20% equity in your home, most banks will drop the PMI for you. Not with FHA, FHA Mortgge insurance remains on the loan for the life of the loan and requires refinance or payoff - - and the process has more to do with the Mortgage Insurance company than the lender or servicer, regardless of whether it was a bank or broker. If your mortgage is not with an FDIC bank, you may be out of luck and it will cost you. This is not correct.
I would advise you go to a good FDIC bank and see if they can get you into a good mortgage with no PMI first ... before 'scre*ing' around with a mortgage co. This makes zero sense. They will send out an appraiser. What. Then do the numbers. I was a Realtor for over 20 yrs and never sent anyone to a mortgage company. Yes you did.
I am an FDIC Mortgage Lender. We are also a bank in some states. I also broker loans to other lenders. So let's not get lost in nomenclature and create confusion.
I am an FDIC Mortgage Lender. We are also a bank in some states. I also broker loans to other lenders. So let's not get lost in nomenclature and create confusion.
Did you reply and give good advice to the OP ? I'd start there if I were you.
It’s Nation One, is that a mortgage broker? They had our mortgage originally, it was who our realtor used and I didn’t realize there was a difference.
Someone told me and I thought mentioned earlier in the thread, that FHA mortgages are not the same as conventional when it comes to getting rid of PMI, not the case?
You should first talk to whoever you have your current mortgage with if you haven't already. Ask right up front how they will help you drop the PMI. Then if you like that arrangement and it doesn't carry a lot of costs to you, stay with them. You will get varying opinions on here.
If you can get a better deal and you have a good credit rating, shop around before you make any decision.
I started a refi with my current mortgage company this past Thurs.
Going from 4.875% FHA loan to 3.5%. I looked around and it seemed like the best deal I could get on a 15 yr term
I digitally signed the application, haven't yet scheduled an appraisal
However, I checked with a local CU and they said they can offer me 2.875. I started my application with them on Fri.
Received an email from the mortgage company on Friday night:
"My team has processed your home loan application and submitted it to our underwriter for review."
This morning I received an email from the CU:
" A Mortgage Loan Consultant will be assigned to your mortgage inquiry shortly and will contact you to discuss your application and loan options."
I started a refi with my current mortgage company this past Thurs.
Going from 4.875% FHA loan to 3.5%. I looked around and it seemed like the best deal I could get on a 15 yr term
I digitally signed the application, haven't yet scheduled an appraisal
However, I checked with a local CU and they said they can offer me 2.875. I started my application with them on Fri.
Received an email from the mortgage company on Friday night:
"My team has processed your home loan application and submitted it to our underwriter for review."
This morning I received an email from the CU:
" A Mortgage Loan Consultant will be assigned to your mortgage inquiry shortly and will contact you to discuss your application and loan options."
That’s awesome! I am looking further, but feel like mine is more complicated situation. Aside from high debt to income ratio, there was an issue with a condo my name is on. My ex (live in but never married) and I bought it 22 or so years ago. He had just gone into business for himself the year before, so he couldn’t get approved for the mortgage without my name on it as well. I really don’t want to take my name off it if I don’t have to. It has appreciated quite a bit because it’s at the Jersey shore. However the mortgage company expressed concern whether I could make the payments if something happened to my ex. Made my debt to income ratio that much higher.
Somehow they missed it on my original mortgage, it never was brought up. But this time they wanted letters from my ex stating that he made the payments by himself and other financial information from him. I almost backed out of the whole thing, because I have not spoken to that ex in over 15 years and it seemed very awkward for me to call and ask him for that out of the blue. So the mortgage person called him for me and got all the documentation. If I start over with another mortgage company that’s going to come up again as well as the difficulty with verifying my employment which I cannot emphasize enough was quite difficult and almost made the whole thing fall through more than once on both the original and this mortgage.
So I am going to look, but it will have to be a really good deal for me to start this whole process over again. I wish mine were as easy as yours, but it’s been quite dreadful both times.
I am a mortgage banker, but we do broker some products out to offer more mortgage loan programs to our customers. I used to work for an FDIC insured bank and I can tell you that they have limited product offerings. I would always using a mortgage bank or an independent mortgage broker as opposed to a brick and mortar traditional FDIC bank.
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I was a Realtor for over 20 yrs and never sent anyone to a mortgage company.
