Profile picture for Ref in DC

PMI on Refinance

I need help! Trying to refinance to combine a two loans on my house. One is interest only and 6.5% and other is P&I and 6%.  New mortgage payment would be the same but PMI on teh good faith estimate shows almost $12,000! The combined current mortgage is $470,000 and the house was appraised for $618,000.  We wanted to pay off debts of around $25,000.  Why is the PMI so high?? The new loan is FHA
  • July 08 2010 - Crestwood
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Answers (2)

Profile picture for wetdawgs
Perhaps you should investigate a conventional loan, because with a LTV of less than 80%, you shouldn't have to pay PMI.   FHA loans do have PMI attached.
  • July 08 2010
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Do you have to have the $25K? The extra cashout is costing you 12K for ufmip plus another $14K in monthly MI payments in the next 5 years. What are the balances for each loan, 1st and 2nd? 
  • July 08 2010
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