Refinance help - Please! (PMI, loan, credit score, rate)

[dazza66]

Currently have FHA loan @5.5% fixed for 30yrs. Origination date 2003. ~ number of payments remaining 149. mortgage balance $94.2k

New conventional refinance no cash out with credit union 15yr fixed @ 3.125%. Loan $96.8k

Closing costs = $3,100

Monthly P&I savings $188

Closing cost breakeven = 16.5 months

I calculated the following

old loan = 149 payments @ $862 = $128,438

new loan = 180 payments @ $674 =$121,320

differnce less closing costs = savings of $4,018 saved ove the 15yr term.

Is this worth it?? please help me.

Thank you
Darren in Miami

[HB2HSV]

Originally Posted by dazza66

Currently have FHA loan @5.5% fixed for 30yrs. Origination date 2003. ~ number of payments remaining 149. mortgage balance $94.2k

Closing costs = $3,100

Monthly P&I savings $188

Monthly savings of LESS THAN $200? For a closing cost of $3,100?

Doesn't seem to be worth the trouble.

A couple of thoughts.......

1) 3.125% at 15 yr loan?
I've seen advertisement of 15 yr loan down below 2%. Shop around for a better rate.

2) Do you have PMI on the FHA loan? Usually folks put down as little as 3.5% for FHA and there's a hefty PMI to go with the loan. If so, that would be a good savings needed to be included.

[adjusterjack]

It actually looks a little better when you compute the interest savings.

If you continue paying on your old loan for another 149 months the interest is 36005.

On the new loan the interest is 24577, a savings of 11428 at the same time reducing your P+I by $200.

Looks worth it to me.

Though I don't know why your new loan is 2600 higher than your old loan balance.

Here's the amortization calculator that I used if you want to play with the figures.

Mortgage/Loan Calculator with Amortization Schedule

Originally Posted by HB2HSV

Monthly savings of LESS THAN $200? For a closing cost of $3,100?

Doesn't seem to be worth the trouble.

Unless you figure $200 per month for 15 years plus the interest difference.

[HB2HSV]

Originally Posted by adjusterjack

Unless you figure $200 per month for 15 years plus the interest difference.

I will look for a lower rate loan.

[dazza66]

Originally Posted by HB2HSV

Monthly savings of LESS THAN $200? For a closing cost of $3,100?

Doesn't seem to be worth the trouble.

A couple of thoughts.......

1) 3.125% at 15 yr loan?
I've seen advertisement of 15 yr loan down below 2%. Shop around for a better rate.

2) Do you have PMI on the FHA loan? Usually folks put down as little as 3.5% for FHA and there's a hefty PMI to go with the loan. If so, that would be a good savings needed to be included.

Thanks for your reply i forgot to mention the FHA loan is an inestment property, no PMI

[dazza66]

Originally Posted by adjusterjack

It actually looks a little better when you compute the interest savings.

If you continue paying on your old loan for another 149 months the interest is 36005.

On the new loan the interest is 24577, a savings of 11428 at the same time reducing your P+I by $200.

Looks worth it to me.

Though I don't know why your new loan is 2600 higher than your old loan balance.

Here's the amortization calculator that I used if you want to play with the figures.

Mortgage/Loan Calculator with Amortization Schedule





Unless you figure $200 per month for 15 years plus the interest difference.

Thanks for your answer I appreciate it. My December balance is now $94,200, when Space Coast Credit Union pulled the payoff was higher

[dazza66]

Originally Posted by adjusterjack

It actually looks a little better when you compute the interest savings.

If you continue paying on your old loan for another 149 months the interest is 36005.

On the new loan the interest is 24577, a savings of 11428 at the same time reducing your P+I by $200.

Looks worth it to me.

Though I don't know why your new loan is 2600 higher than your old loan balance.

Here's the amortization calculator that I used if you want to play with the figures.

Mortgage/Loan Calculator with Amortization Schedule





Unless you figure $200 per month for 15 years plus the interest difference.

Hi, if you use my math I only get a 7k benefit excluding closing costs. With yours the interest is ~11k what gives?

[adjusterjack]

Originally Posted by dazza66

Hi, if you use my math I only get a 7k benefit excluding closing costs. With yours the interest is ~11k what gives?

Dunno. Use the amortization calculator to check the figures.

[MortgageInFlorida]

Originally Posted by dazza66

Currently have FHA loan @5.5% fixed for 30yrs. Origination date 2003. ~ number of payments remaining 149. mortgage balance $94.2k

New conventional refinance no cash out with credit union 15yr fixed @ 3.125%. Loan $96.8k

Closing costs = $3,100

Monthly P&I savings $188

Closing cost breakeven = 16.5 months

I calculated the following

old loan = 149 payments @ $862 = $128,438

new loan = 180 payments @ $674 =$121,320

differnce less closing costs = savings of $4,018 saved ove the 15yr term.

Is this worth it?? please help me.

Thank you
Darren in Miami

Why such high interest on refi? If it is non cash out, even for investment property, with decent LTV, credit score and DTI, interest should be below 3%.
Loan amount is higher might be because they rolled part of closing cost into your loan which is a normal practice if there is enough equity.

I also work in Florida and know local programs here.

[dazza66]

Many thanks