Mortgage refi question

[thequest]

I agree what others are saying. If you're planning to refinance for another 30 years then don't, what you've paid for several years will become a waste, when at this point you are very near to paying off your mortgage. 

[Zaximus]

I agree what others are saying. If you're planning to refinance for another 30 years then don't, what you've paid for several years will become a waste, when at this point you are very near to paying off your mortgage. 

 

Yeah I didn't do that.

 

Instead I'm talking about a 21 year mortgage where my payment is like 15-20 more than it is now but I can take out PMI faster.  However the PMI is doubled so I'm still not sure.  Plus I just seen on the "good faith estimate" I may now have to pay like 5.8k in fees and stuff.  Not worth it for me, honestly.  I may stick with what I have.

 

I did get a letter in the mail a bout a 2.8% rate I think, under FHA, where it can go up 1% after 5 years and then every 12 months to a max of 5.0% above I believe.  Might be better and then I can refi before that starts going up too much?  

 

It's frustrating for sure.

[thefuzz]

Yeah I didn't do that.

 

Instead I'm talking about a 21 year mortgage where my payment is like 15-20 more than it is now but I can take out PMI faster.  However the PMI is doubled so I'm still not sure.  Plus I just seen on the "good faith estimate" I may now have to pay like 5.8k in fees and stuff.  Not worth it for me, honestly.  I may stick with what I have.

 

I did get a letter in the mail a bout a 2.8% rate I think, under FHA, where it can go up 1% after 5 years and then every 12 months to a max of 5.0% above I believe.  Might be better and then I can refi before that starts going up too much?  

 

It's frustrating for sure.

 

DO NOT DO FHA.

 

You will have to pay mortgage insurance for the life of the loan.

 

Personally I wouldn't use any company or program that is reaching out to you to do a refi.  Call a local mortgage company and have them run through the numbers with you face to face.  

 

If you can get rid of the MI, and get on a 15 with little out of pocket fees...do it, otherwise just keep working on getting the loan/value ratio below 80% so you can lose the MI.

 

Also, as I mentioned earlier, you need to pull some comps and possibly pay for an appraisal and see if you are already there.

[Squirrel]

Seems like your PMI should already be gone if you have been paying for close to 7 years.  Thought the PMI dropped after 5 years? 

[Zaximus]

Seems like your PMI should already be gone if you have been paying for close to 7 years.  Thought the PMI dropped after 5 years? 

 

No PMI only drops when you have 20% equity.  So you can either make enough payments to get there, or somehow your house becomes becomes more valuable in appraisal.  It is insurance that the lender buys from a 3rd party in case you default.  It's basically throwing money away till you get it taken off.   It doesn't matter what loan I choose, FHA, conventional, I'll get stuck with PMI on there.

[Squirrel]

No PMI only drops when you have 20% equity.  So you can either make enough payments to get there, or somehow your house becomes becomes more valuable in appraisal.  It is insurance that the lender buys from a 3rd party in case you default.  It's basically throwing money away till you get it taken off.   It doesn't matter what loan I choose, FHA, conventional, I'll get stuck with PMI on there.

 

 

Yeah new what PMI is but I don't have to deal with it (VA loan).  Just thought after 5 years your PMI would be gone.  Yeah it sucks because you are throwing money away. 

[Zaximus]

Yeah new what PMI is but I don't have to deal with it (VA loan).  Just thought after 5 years your PMI would be gone.  Yeah it sucks because you are throwing money away. 

 

And the refi doubles my PMI per month, so even if I can get to 20% equity a bit quicker I'm not sure double PMI (almost 1k more than I pay now per year) is worth it.  I'd rather pay an extra 1k or more a month into principal which I'll probably do.

[thequest]

It's frustrating for sure.

 

I know. It's really frustrating to think of other ways to get out of your mortgage. Hope you're able to sort it out soon just stay away from refi or anything that will make your payment go to waste.