Pls help - to refinance or not (HFA) (PMI, loan, escrow)

[mlucky13]

First time poster researching refinancing and I came across this forum of helpful users.

My situation. (we plan on being in the house about 8-10 years)

Purchased a house for $228,000 in August 2007, 100% loan, no money down, with a 30 year fixed APR of 7.25%. With taxes and insurance, we now pay $1932 a month.

Refinancing option comes via HFA - must pay $7,200 cash to get it.
Base loan $222,870
MIP $3900
TOTAL LOAN = $226,770

30 yr fixed 5.5%
P&I = $1288
MI = $103
Taxes = $355
Home ins. = $40
TOTAL = $1785

Closing costs will be around $2200 and we will need to set up a new escrow which I guess costs about $1000. This is added into $7200 below.

With a new loan of $222,870 plus $7200 cash - is it worth it?

Please let me know your thoughts.

[renriq02]

Is HFA = FHA?

[mlucky13]

Oops, I spelled it wrong - FHA

[renriq02]

it's a good rate!

last week it was at 5%!!!!

rates are going up, but your 5.5% is way better than 7%

[VictorBurek]

Yes you should refi. It would make more sense to see if you can do a first and 2nd lien to avoid mortgage insurance. I would only look into this if your credit score is above 680.

[ana_901]

Are there banks that will refinance a 100% loan without PMI in TN?
I am in kind of the same predicament, plan on staying in the home for quite a number of years.
Purchased home Apr 07 100%, no PMI, 6.875%
Would really like to get to the 5.5 or less if possible.
Home value is not upside down, but really no equity at this point.

[renriq02]

you will need to be around 95% for some areas allowed

or 90% LTV for most areas for Lender Paid PMI.

Or you can do a FHA refinance up to 97%....and pay a low monthly pmi fee with an upfront MIP funding fee

[ana_901]

Thank you renriq02.
Not a problem with the 95% LTV, will have to do more checking around.