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About 2 months ago I was getting a lot of letters in the mail, they've started to slow now
I also received a voicemail from the original loan company stating we are a preferred customer and they want to talk about refinancing to remove (some) of the insurance
Our current interest rate is 4.00%. Balance is $218,558.58 on an original loan amount of $223,850.00
Here are the other details:
Principal & Interest $1,068.69
Homeowner's Insurance(s) $45.50
MIP Mortgage Insurance $145.49
County Tax $123.24
Shortage $0.20
We've had the loan for about 1.5 years, and I understand it may be too early to do anything, but property values have gone up and our credit rating has improved
I'm not sure what the current interest rate environment is, and whether we can lower our payments or not
Any suggestions? Or would I be wasting my time calling loan officers?
About 2 months ago I was getting a lot of letters in the mail, they've started to slow now
I also received a voicemail from the original loan company stating we are a preferred customer and they want to talk about refinancing to remove (some) of the insurance
Our current interest rate is 4.00%. Balance is $218,558.58 on an original loan amount of $223,850.00
Here are the other details:
Principal & Interest $1,068.69
Homeowner's Insurance(s) $45.50
MIP Mortgage Insurance $145.49
County Tax $123.24
Shortage $0.20
We've had the loan for about 1.5 years, and I understand it may be too early to do anything, but property values have gone up and our credit rating has improved
I'm not sure what the current interest rate environment is, and whether we can lower our payments or not
Any suggestions? Or would I be wasting my time calling loan officers?
Never do an FHA Streamline.
If I were you, I'd refi into a conventional loan asap and get away from the permanent FHA Monthly mortgage insurance.
There is no tangible benefit in doing an FHA streamline.
If I were you, I'd refi into a conventional loan asap and get away from the permanent FHA Monthly mortgage insurance.
There is no tangible benefit in doing an FHA streamline.
That is not completely true, but since you have one of the newer FHA streamline loans you are definitely stuck with permanent mortgage insurance. Your best best bet is probably to wait until you can refinance out at 80% equity. Your home would have to appraise at 20% higher than the current mortgage balance.
Sometimes it is easier to refinance using the streamline program and your not so good credit prevents you from refinancing. That was the case with me and it made sense to use the streamline program to lower my payments $150 a month. Not much, but something.
That is not completely true, but since you have one of the newer FHA streamline loans you are definitely stuck with permanent mortgage insurance. Your best best bet is probably to wait until you can refinance out at 80% equity. Your home would have to appraise at 20% higher than the current mortgage balance.
Sometimes it is easier to refinance using the streamline program and your not so good credit prevents you from refinancing. That was the case with me and it made sense to use the streamline program to lower my payments $150 a month. Not much, but something.
So if I do stream line fha refinance now I can always do the conventional refinance later also (when at 80% equity)?
So if I do stream line fha refinance now I can always do the conventional refinance later also (when at 80% equity)?
My credit is good now, 760 I think
If I were you, I'd refi into a conventional loan asap and get away from the permanent FHA Monthly mortgage insurance, even if you don't have 80% equity, you might still save money.
If I were you, I'd refi into a conventional loan asap and get away from the permanent FHA Monthly mortgage insurance, even if you don't have 80% equity, you might still save money.
ah got it, i didn't know you could do that without the 80%. thank you
ah got it, i didn't know you could do that without the 80%. thank you
You will still pay mortgage insurance with a conventional loan with less than 80% LTV, but it will be until it gets to 78% LTV or 80% and you request it to be dropped. As opposed to the life of loan.
Refinancing often looks like an attractive way to save money monthly, but you must consider how long you will remain in the home before the cost is paid for.
For example let's say the refi costs you $3000. You save $50/month on your payment. It will take you 60 months before you break even on the costs. Will you live in the house that long?
This, of course, doesn't reflect any interest you save. That's often not a big factor this early in a typical 30 year loan and few people live in a house long enough for it to be significant for an early refinance.
Obviously not paying PMI is the biggest savings potential.
Refinancing often looks like an attractive way to save money monthly, but you must consider how long you will remain in the home before the cost is paid for.
For example let's say the refi costs you $3000. You save $50/month on your payment. It will take you 60 months before you break even on the costs. Will you live in the house that long?
This, of course, doesn't reflect any interest you save. That's often not a big factor this early in a typical 30 year loan and few people live in a house long enough for it to be significant for an early refinance.
Obviously not paying PMI is the biggest savings potential.
i'm not going to pay for the refi upfront, i want to get that portion rolled into the loan
i'm not going to pay for the refi upfront, i want to get that portion rolled into the loan
The cost exists whether you write a a check for it or roll it into the loan.
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