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Old 09-15-2011, 11:48 AM
 
1,821 posts, read 3,053,715 times
Reputation: 1264

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I purchased a house 3 years ago.

Dec 2008
---------
Tax Value was $406,000
Appraisal at time of purchase was $369,000
Sales price was $315,000
Mortgage of $300,000 (15k down and 20 years)


Fast Forward Sept 2011, my wife works for a major bank and we can get a better rate and go down to 15 year and hope to keep the same payment shaving 2 years off our mortgage. We are going from a 5% to 3.3750% rate and it's 1800 in closing costs.

Tax Value was $406,000
Appraisal at time of refinance is $390,000
Mortgage will be ~$292,000(15 years)

That is ~75% loan to value, does that mean PMI goes away? For the original mortgage it was purchase price that decided loan to value. This makes a refi even more attractive financially.


Am I missing something here. Seems like a good idea.

Last edited by zinner; 09-15-2011 at 12:05 PM..
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Old 09-15-2011, 12:00 PM
 
Location: Plano, Texas
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PMI will be based on current appraised value since you are refinancing. So no PMI for you.
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Old 09-19-2011, 12:12 PM
 
Location: New York
2,251 posts, read 4,495,388 times
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Quote:
Originally Posted by VictorBurek View Post
PMI will be based on current appraised value since you are refinancing. So no PMI for you.


Victors right - nada on the PMI....
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Old 09-19-2011, 01:03 PM
 
1,045 posts, read 2,097,176 times
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What I am wondering is - why is your tax value still so high? Aren't you able to go to the local tax office and get them to recalculate the tax value down to the purchase price?
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