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Old 03-13-2013, 09:27 AM   #1
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Need opinions on a refi please

So a friend of mine is a loan officer and posted about FHA pmi rates going up which would cause our current mortgage to go up. She ran our info and we can do a streamline refi with no closing costs, no appraisal. It would only lower our payments about $70 per month though. Granted that is instead of it going up from the rate raise on the pmi (mortgage insurance, that the lender has that we have to pay). We would lose the last 3 years that we've paid in since it would start back over as a 30 year loan. I'm torn as to what to do. We are trying to cut our monthly expenses to allow for my dh to get a local job and be home every night. Currently he is gone all week and is only home on weekends. So this would help cut a little more.
So give me your opinions please.

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Old 03-14-2013, 10:33 AM   #2
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Re: Need opinions on a refi please

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Originally Posted by briggsy13 View Post
So a friend of mine is a loan officer and posted about FHA pmi rates going up which would cause our current mortgage to go up. She ran our info and we can do a streamline refi with no closing costs, no appraisal. It would only lower our payments about $70 per month though. Granted that is instead of it going up from the rate raise on the pmi (mortgage insurance, that the lender has that we have to pay). We would lose the last 3 years that we've paid in since it would start back over as a 30 year loan. I'm torn as to what to do. We are trying to cut our monthly expenses to allow for my dh to get a local job and be home every night. Currently he is gone all week and is only home on weekends. So this would help cut a little more.
So give me your opinions please.
How many more months will you have pmi? Is the interest rate the same?
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Old 03-14-2013, 10:46 AM   #3
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Re: Need opinions on a refi please

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How many more months will you have pmi? Is the interest rate the same?
The interest rate will go from 5.5 to 4 and we would have the option to drop pmi after 5 years with an appraisal showing 78% equity, but no need to refi to lose pmi. Apparently after this change we would have to refi again to get pmi dropped.
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Old 03-14-2013, 12:40 PM   #4
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Re: Need opinions on a refi please

Have you asked the loan officer to run the numbers if you were to do a 20 or 15 year loan? We just refinanced (in the fall) and went with a 20 year because the rate was better and since the rate was so much better it didn't increase our payment at all from what we were already paying. It might not necessarily lower your payment but you would still be ahead in the number of years you have already paid into the loan.
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Old 03-14-2013, 12:50 PM   #5
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Re: Need opinions on a refi please

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Have you asked the loan officer to run the numbers if you were to do a 20 or 15 year loan? We just refinanced (in the fall) and went with a 20 year because the rate was better and since the rate was so much better it didn't increase our payment at all from what we were already paying. It might not necessarily lower your payment but you would still be ahead in the number of years you have already paid into the loan.
I did and in order to get a 20 or 15 (which I would love to do) we would have to do a straight up refi with appraisal and closing costs. Because this is a streamline we don't have to worry about any of that.
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Old 03-14-2013, 12:52 PM   #6
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Re: Need opinions on a refi please

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Originally Posted by briggsy13 View Post
The interest rate will go from 5.5 to 4 and we would have the option to drop pmi after 5 years with an appraisal showing 78% equity, but no need to refi to lose pmi. Apparently after this change we would have to refi again to get pmi dropped.
I agree that you might want to consider decreasing the term of the loan from 30 years to 20 years.

After you reach 80% equity, you can probably petition to have the PMI removed.

It sounds like a good deal although you will probably pay a bit more over the life of the loan. Just double and triple check there are no additional costs, fees, charges of any kind.
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Old 03-14-2013, 01:13 PM   #7
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I second scherma, check for hidden costs and talk to a loan officer who is not your friend (that is a world of hurt just waiting to happen trust me)
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