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FHA 30 year at 5% on a 229k refi advice?

I want to finish the PMI payments, but if I go to a new loan the PMI goes double for another 5 years, should I stay with my original loan at 5% or refi at a 15, 20 or 30 year. I gross around 4,300 per month, I have no debt and a 800 fico. Any advice? I'm looking for the best deal of course.
  • November 10 2011 - Chula Vista
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Answers (3)

The 15 year could be the best option if you looking at FHA financing, the MI will be at worst about the same as your current MI (assuming your existing is FHA) and of course the rate much lower.

Current property value, loan amount are most important information missing here to determine any helpful advice.
  • November 10 2011
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Depending on how much equity you have, with a credit score that strong and good dti, you might be able to get in the low 4% and be able to avoid mortgage insurance all together.  Feel free to contact me if you would like to discuss this in further detail.
  • November 10 2011
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This is a hard question right now with the FHA MI rates being as high as they are. You said your MI will double for the next five years? If so you may be best in your current loan as even lowering your interest rate to 4% might not lower your payment enough to make any difference.

You'd really have to see a total savings analysis to make an informed decision. I'd love to help with that as I'm sure a number of other competent lenders here on Zillow can.

Sincerely,
Greg

P.S. We don't have enough information to see if it is possible but you may also be able to get away from an FHA loan entirely. If that is possible it may be the best bet both short and long term.
  • November 10 2011
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