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Answers (6)
- James Peters, "JamesRPetersSr"
- Contributions:98
Look the bottom line is absolutely it would make sense to get out of the PMI and lower your rate since you have only been in home a couple years. You can back out of the loan at anytime. If appraisal comes in short I can do a lender paid PMI that should still save you money as long as you have a 700 score or better. Your plan sounds like a good one to me.
"FHA has mandatory PMI on their 30 year fixed for the first 5 years"
"PMI" on an FHA loan? Excellent work there T.C., way to stay on top of things!
What does the "P" stand for in PMI T.C.?
"PMI" on an FHA loan? Excellent work there T.C., way to stay on top of things!
What does the "P" stand for in PMI T.C.?
- T.C. Whiting, "TC_at_PNC_Bank"
- Contributions:332
FHA has mandatory PMI on their 30 year fixed for the first 5 years. If you can refinance into a non-fha then yes absolutely its possible. To figure out how long it will take to recoup costs take the savings, plus the amount of interest you have already paid down on the loan. Divide that number by the amount of the monthly savings and that will tell you how many months to recoup costs.
You should be able to get a loan with no closing costs if you prefer. But, you will always have sunk interest paid. Feel free to get in contact with me for further discussion.
You should be able to get a loan with no closing costs if you prefer. But, you will always have sunk interest paid. Feel free to get in contact with me for further discussion.
- shapiroamg
- Contributions:3058
You would basically be on the hook for the appraisal. I dont know your market but would not focus on anything regarding previous costs to build or buy. If you know a local Realtor, ask them what they think is the value these days based on what has sold recently.
- danicole
- Contributions:2
If I do refinance, it would be to a conventional. At what point in the refi process is the appraisal done? can I back out if the appraisal comes back too low? will I just have to pay for the appraisal and walk away?
- Mark Gelbman, "Mark Gelbman"
- Contributions:222
In a declining market, you may not get the bump in value you expect from the garage. If you do a FHA refi, your pmi will go up. If you can refinance into a conventional loan, you may still need pmi, but at a lower level. It really all depends on the value.
Refi, equity and PMI drop
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