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Hi all, would appreciate some feedback on my situation.
Current loan: Been in home for 2 years. Purchased at $323k, put 5% down. 6.25% for 30 year fixed with no PMI. We owe $298k. Last week the appraisal came through at $309k. So LTV of about 96.4%. Loan is held through Chase now (was sold to them). We have excellent credit. Will plan on being in current home for about 6-7 more years.
I'm working with a community bank near my job. He ran my application and appraisal, and says an FHA loan is best for my situation. He locked at 4.25% for 30 yr fixed on Friday (with $895 origination fee). He says I would now have an upfront PMI (which I can roll into the loan), as well as a monthly PMI (which I understand is 0.55% but is going up next month). But he says it still makes sense as my monthly payment will still go down.
So I flew out of town this weekend and happened to be sitting on the plane next to a mortgage banker. I told him I'm going through this refi and gave him my stats. He asked why I haven't looked into a ReFi Plus. He said as long as I have a Fannie Mae loan (which I do, per their lookup tool), the ReFi Plus makes the most sense. He says rates are still low, and since I don't have PMI, I won't have to pay PMI on the re-fi.
I asked him why he thinks my current banker didn't suggest that to me. He said it's likely that their bank doesn't offer that program, or perhaps he just doesn't know about it. The guy on the plane suggested that I ask him, and also gave me his contact info in case I want to work with him instead.
So what are your thoughts on this? I did some searching on ReFi Plus last night, and on paper, it does seem like a good option. Does it make sense to pursue that, due to the savings on PMI? I'm going to email both bankers today.
You will not be eligible for this program. Your LPMI is considered to be a credit enhancement.
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