I work in the industry and can lend in CA. definitely get rid of the FHA PMI as it's squandering valuable money.
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Refinance now??
- Thread starter Belchfire1
- Start date
Just heard the Federal Reserve is going to lower its rate for the first time in umpteen years. The window is now until the 3rd qtr next year.
From what I hear after qtr 3 next year the economy is going to take a huge dump.
Unless Trump wins.
From what I hear after qtr 3 next year the economy is going to take a huge dump.
Unless Trump wins.
I pay pmi. Our home was kind of an impulse buy so we didn’t have much cash on hand for down payment. Gained 250k in Zillow value since 2015, but our interest rate is only 3%. Even with the rate decreases in every scenario I have explored my payment is still cheaper with pmi and a low rate than it would be to refinance. But that’s pretty unique. If I could keep the 3% and ditch the pmi that would be fantastic.
If you can get rid of that stupid PMI payment and get a slightly lower rate as well, it's a no-brainer to refinance. Putting that extra $300+ into the monthly payment is smart.Belchfire1 said:
wait a year.
Fed entering full blown rate cut cycle likely starting September but no later than December IMO.
Fed entering full blown rate cut cycle likely starting September but no later than December IMO.
Couldn't you get your home reappraised? The new appraisal value should eliminate the requirement for PMI. That would raise your property tax though.subway said:
yeah and our property taxes just went up quite a bit as it is (legislative, not appraisal related)
Oh and we got that type of loan where the PMI remains, now matter what equity percentage we reach, for the life of the loan. So we will obviously refi at SOME point, bt with my absurdly low interest rate, the Fed needs to cut a bit more in order for it to come into the money
Oh and we got that type of loan where the PMI remains, now matter what equity percentage we reach, for the life of the loan. So we will obviously refi at SOME point, bt with my absurdly low interest rate, the Fed needs to cut a bit more in order for it to come into the money
Thanks FishFace. I may hit you up after we get the appraisal. The 28 year or even 25 year loan is a pretty good idea. I'm gonna be old as dirt at that point anyways, so paying this loan off probably isn't actually happening. I'll be like 75 years old. Thinking we'll probably sell the place in 20 years and retire somewhere other than Encinitas. Thanks for all the advice everyone. I appreciate it.
Belch
Belch
subway said:
I've not heard of non-cancellable mortgage insurance.My advice is to keep track of your loan balance and area home prices. Once the loan balance reaches 80 percent of the home’s original value, you can ask the lender to drop the mortgage insurance premiums.
Exceptions? Yes, FHA loans on property purchased with less than 10% down. I guess that's what you have.
I'm not following the math here Fishface.
So say the loan amount is $260k
.85% of that is 2,210, then divided by 12 is $184.17
or am I doing it wrong and .85% is $221,000 then didided by 12 should be $18,416.67 ?
Neither one is right to me, so I might need a lil more splaining. what part did I miss?
Is it .....add .85% to the interest rate? like if the rate is 3.75% it becomes 4.6%?
if that is the case then the payment would be roughly 1k, yes?
So say the loan amount is $260k
.85% of that is 2,210, then divided by 12 is $184.17
or am I doing it wrong and .85% is $221,000 then didided by 12 should be $18,416.67 ?
Neither one is right to me, so I might need a lil more splaining. what part did I miss?
Is it .....add .85% to the interest rate? like if the rate is 3.75% it becomes 4.6%?
if that is the case then the payment would be roughly 1k, yes?
Dropping PMI is a no brainer.
If anyone wants a simple spreadsheet with Amortization and PITI calcs to calculate total interest paid PM me and email and I'll send it. It'll give you the true cost of interest over the life of the loan.
I just refi'd to drop to 3.625 from 4.25%.
If anyone wants a simple spreadsheet with Amortization and PITI calcs to calculate total interest paid PM me and email and I'll send it. It'll give you the true cost of interest over the life of the loan.
I just refi'd to drop to 3.625 from 4.25%.
Cracks me up when posters take them time to chime in order to tell everyone they're wrong, then they are "too busy" to explain why #toocoolforschoolBelchfire1 said:
:bigdeal:
I refi'd into VA Loan at 3% a few years ago. As a DAV I don't pay fees or closing costs, which is nice....and no PMI on VA loans.
I'm already in too deep to refi.
I don't want to reset the clock.
Would rather continue to just pay the thing off.
The monthly savings isn't enough to make me want to jump ship.
I don't want to reset the clock.
Would rather continue to just pay the thing off.
The monthly savings isn't enough to make me want to jump ship.