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Profile picture for riddle9

refi without PMI

House recently appraised for $440k, have a single 5.5% 30y fixed with $397k remaining, paying PMI.  What is my best option to lower payment without spending a lot at closing?  I'm comfortable with 5/1 ARM given that we'd like to move within 2 years.  We have excellent credit and income.
  • September 08 2011 - Durham
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Answers (5)

This is a chance you could do what is called a "single paid" MI premium that is paid up front instead of monthly.  The lender could possibly credit you to pay for this.  This would allow yo to have no MI which I think was your original question.

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  • September 08 2011
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Profile picture for Sharon Lewis
An ARM? What are the homes going for around you right now. Are they appreciating or depreciating. Tread carefully with an ARM.
I am in this area and can do a comparative market analysis for you, as any local agent can. Feel free to ask.
Sharon
  • September 08 2011
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"I only lend in California"

If you only lend in California and the OP is in NC, why do they (and we) need your contact information?
  • September 08 2011
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There are lenders that have 5 year arms without PMI
  • September 09 2011
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Robert is spot on.   How I would normally handle this is to refiance with Single Premium Mortgage Insurance and just cover that for the borrower (not magically, you pay a slightly higher rate for it).   But, it ends up being better than any other MI option in most cases.   This tends to be less efficient on ARMs however, so we'd have to look at it.  Ultimately, itt depends what rate you have now verus what you would have at the end.  Feel free to get in contact with me by clicking on my name.  I can do loans in all 50 states.

Also, as Tom mentioned, there are absolutely lenders that do not have mortgage insurance even at 90 or 95%, but in my experience their rates are typically in "last option" territory on conforming loan amounts.  In other words, it's likely that a 30 year fixed at a rate I can cover your SPMI would be actually lower than the 5 year fixed with no mi from one of these lenders (but it all depends on a bunch of different factors). 

I answer too many posts to subscribe to each one, so please get in contact with me if I can be of any further assistance.

Good luck!
  • September 09 2011
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