ReFinance Question - 1/23/13 | TigerDroppings.com
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GimmieSomeGlitter
Ole Miss Fan
GreenBOW ALABAMA!
Member since Aug 2011
491 posts

ReFinance Question

Hey guys, I bought a house in Feb of 2010, and looking at refinancing maybe?

I got a 30yr FHA @ 4.5%. Loan balance is right around $195k. I feel like if we got an appraisal that we would have 20% equity in it since the houses in our neighborhood have been selling pretty well.

With rates continuing to drop it's making me wonder if I need to consider looking into this.

Thoughts?


LSUSUPERSTAR
LSU Fan
TX
Member since Jan 2005
10506 posts

re: ReFinance Question
There is a calculator on bankrate.com that might be able to help you.


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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
136 posts

re: ReFinance Question
your pmi payment is probably high, if you are at 80% loan to value,you need to refinance and get a conventional bank loan, rates around 3.375% to 3.5% and you get out of pmi.
if you dont refi, FHA states you must carry pmi min 5 yrs, does not matter what loan to value you are at.


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MikeBRLA
LSU Fan
Baton Rouge
Member since Jun 2005
9604 posts

re: ReFinance Question
Make sure to pay off your FHA loan at the end of the month. If you pay it off at the beginning you are forced to pay the interest for the rest of that month. Basically they don't calculate interest per diem, only per month. It's a scam by FHA to force you to pay interst on money you are no longer borrowing, and should be illegal IMO.


LSU1018
LSU Fan
Baton Rouge
Member since Feb 2007
5474 posts

re: ReFinance Question
I would be sure you will meet the mark to remove PMI or have enough cash to put down on principal if you are close before deciding.


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novabill
LSU Fan
Crossville, TN
Member since Sep 2005
6437 posts

re: ReFinance Question
No doubt you should at least look at the numbers. Your effective rate with PMI is much higher than the 4.5. Your new payment would be around 875 a month before taxes and insurances.


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