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Old 05-15-2014, 11:00 AM
 
1 posts, read 1,653 times
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Let me start by saying we financed our home 5 years ago thru FHA. We have a 6% interest rate ( not terrible ) and pay PMI of $65.00 / mo. We have a 4 part ( quad ) manufactured home on permanent foundation on 5 acres.
Here's my quandary....I could refinance and get a lower interest rate, which would lower my payments. However, if I go FHA ( which is about the only way to refinance a manufactured ) I would now have to pay a PMI rate much higher ( in the $250 - 300 range per month ), so really my payment doesn't change at all. I don't understand why I would be paying such a huge PMI rate , when my property is valued well over the mortgage amount ( less than $150k mortgage on a home valued in the range of $250k - 280k ).
We also own a second parcel of land directly behind this one - that is owned outright and yet no one will refinance on "land only " ( although we bought it as "land only" and originally financed it that way ).
Anyone have any ideas on the subject ? Any manufactured home specialists out there that know a way around this silliness ?
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Old 05-15-2014, 11:28 AM
 
988 posts, read 1,564,265 times
Reputation: 1078
Quote:
Originally Posted by shihtzupug View Post
Let me start by saying we financed our home 5 years ago thru FHA. We have a 6% interest rate ( not terrible ) and pay PMI of $65.00 / mo. We have a 4 part ( quad ) manufactured home on permanent foundation on 5 acres.
Here's my quandary....I could refinance and get a lower interest rate, which would lower my payments. However, if I go FHA ( which is about the only way to refinance a manufactured ) I would now have to pay a PMI rate much higher ( in the $250 - 300 range per month ), so really my payment doesn't change at all. I don't understand why I would be paying such a huge PMI rate , when my property is valued well over the mortgage amount ( less than $150k mortgage on a home valued in the range of $250k - 280k ).
We also own a second parcel of land directly behind this one - that is owned outright and yet no one will refinance on "land only " ( although we bought it as "land only" and originally financed it that way ).
Anyone have any ideas on the subject ? Any manufactured home specialists out there that know a way around this silliness ?
I don't have much experience with manufactured home rules but the reason your PMI would be higher if you refinanced is because FHA overhauled their rules recently re: mortgage insurance so the premiums are much higher AND they're for the life of the loan, regardless of how much equity you have in the home. Your loan is old enough that it should be grandfathered in with the old rules, where you can drop PMI once you reach 22% equity. That higher PMI payment alone should wipe out any savings you might achieve by refinancing. Is there no way you could re-fi into a conventional loan?
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Old 05-15-2014, 11:52 AM
 
Location: North Idaho
27,704 posts, read 37,436,455 times
Reputation: 60083
I can't see any benefit to your refinancing.

Pay it down some more and then see if you can qualify to get the PMI removed from your current mortgage.

Seriously, 6% isn't bad. That's pretty cheap money.
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