- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
PMI
Posted on 2/27/15 at 8:39 am
Posted on 2/27/15 at 8:39 am
We purchased our home last year at 4.75% interest with Chase bank. As part of that loan, we have been paying $180 per month for PMI. Yesterday, I received a quote to refinance through a local lending agency for 4.5% APR, no closing costs and no PMI. He explained that those costs were part of the APR.
What am I missing?
What am I missing?
7
Posted on 2/27/15 at 8:48 am to seawolf06
You would likely get a lower rate if you paid PMI. If you have good credit, you should be able to get around 4% right now on a 30 year loan. Last week I was quoted 3.875 for a 30 year loan.
Posted on 2/27/15 at 8:49 am to seawolf06
I would assume you are paying a higher rate 4.5% than you would Otherwise with them.
If you had more equity in the house, they'd refinance you at 4.0% for example.
What company btw? I'm in a similar situation and have Chase as well so I be curious.
If you had more equity in the house, they'd refinance you at 4.0% for example.
What company btw? I'm in a similar situation and have Chase as well so I be curious.
This post was edited on 2/27/15 at 8:51 am
Posted on 2/27/15 at 10:22 am to seawolf06
as stated you can get pmi eliminated for a higher rate, this can be good or bad,
how long do you plan on staying in the house?
what is your percent of equity in the house?
also remember interest is tax deductible PMI is not
how long do you plan on staying in the house?
what is your percent of equity in the house?
also remember interest is tax deductible PMI is not
Posted on 2/27/15 at 11:40 am to seawolf06
It's just lender paid PMI. The missing piece of information is that the 4.5% rate is above market rates. I'm not sure about the refinance market, but that is nearly 1% over new mortgage rates.
I did the LPMI route and locked in 3.875% with 5% down (no monthly PMI) FWIW. It would have been 3.625% otherwise.
I did the LPMI route and locked in 3.875% with 5% down (no monthly PMI) FWIW. It would have been 3.625% otherwise.
This post was edited on 2/27/15 at 11:42 am
Posted on 2/27/15 at 1:32 pm to TigerDeBaiter
Ok, so what it sounds like what I am missing is that I was screwed over on my initial loan paying PMI AND the 4.75% APR.
I plan on staying in this house for 30 years, but we all know that plans change and that rarely happens. It is large enough that we won't have to upgrade if/when we start a family, though.
I think I'll stick with the higher APR, at least until I have enough equity to refinance at a lower rate without PMI. As it stands, we only have about 11% equity in the house as of the appraisal last year. This refi will require a new appraisal, but that is also reimbursed.
The company is local to Raleigh, so I don't know if they'll be able to help anyone in LA - Miller Lending.
I plan on staying in this house for 30 years, but we all know that plans change and that rarely happens. It is large enough that we won't have to upgrade if/when we start a family, though.
I think I'll stick with the higher APR, at least until I have enough equity to refinance at a lower rate without PMI. As it stands, we only have about 11% equity in the house as of the appraisal last year. This refi will require a new appraisal, but that is also reimbursed.
The company is local to Raleigh, so I don't know if they'll be able to help anyone in LA - Miller Lending.
Posted on 2/27/15 at 1:59 pm to seawolf06
quote:
Ok, so what it sounds like what I am missing is that I was screwed over on my initial loan paying PMI AND the 4.75% APR.
Not necessarily. Rates upticked a bit from where they are now Spring last year. Plus, there are a variety of factors that went into that rate. Maybe you "got screwed" but you also should have shopped the rate at least a bit and you'd know for sure.
Thanks for the info, didn't realize you were in Raleigh.
Posted on 2/27/15 at 9:06 pm to seawolf06
Shop around. I just refinanced at 3.95% and no PMI. Run an amortization table including the closing costs in your new loan and compare to your current loan. See when the principal amount on the new loan is less than the amount on the current loan and you can determine your break even point.
Posted on 2/28/15 at 7:02 am to seawolf06
I have a pmi question as well and figure this may be a good thread to ask it.
My original mortgage is from 2012 @ 3.75% I know that the pmi rate is lower now than it has been in years. I only plan to be in my house for ~5 more years. Considering refinancing to cut my pmi for the next 5 years even though my interest will be higher. I'm really just worried about closing cost. Thoughts?
My original mortgage is from 2012 @ 3.75% I know that the pmi rate is lower now than it has been in years. I only plan to be in my house for ~5 more years. Considering refinancing to cut my pmi for the next 5 years even though my interest will be higher. I'm really just worried about closing cost. Thoughts?
Posted on 2/28/15 at 9:37 pm to LSU6262
Funny how there are lots of changes going around right now. I purchased my current home in July of 13. Got a 4.25 rate. Funny thing is rates were at 3.75 for a year and when we were ready to lock in, rates jumped to 4.75 over night. Dropped a few days after and we went with the 4.25%. about a month ago, my morgtage company called me, offering me a refi with a 3.85 rate for same term I have now, Lower PMI percentage, will pay any escrow shortage and no closing cost. They did everything and I literally talked to them twice for a total of 5 min. Sent a notary to my home to sign the docs and it was complete. Saved me about 250 a month.
Posted on 3/1/15 at 8:57 am to seawolf06
quote:
Ok, so what it sounds like what I am missing is that I was screwed over on my initial loan paying PMI AND the 4.75% APR.
Not necessarily, that might have been competitive when you locked in; rates have fallen again recently.
I do think the refinace rate you got is a little bit high.
Posted on 3/2/15 at 6:16 am to seawolf06
What was Credit score, purchase price, loan amount, & date purchased
Posted on 3/2/15 at 7:41 am to TigerDeBaiter
quote:
Shop around. I just refinanced at 3.95% and no PMI.
My APR covered closing costs as well, instead of paying them upfront or rolling them into the principal. How did yours work and who was it through?
quote:
Not necessarily, that might have been competitive when you locked in; rates have fallen again recently.
I do think the refinace rate you got is a little bit high.
I haven't signed anything yet, so I guess that I could shop around some more.
Posted on 3/2/15 at 10:12 am to seawolf06
Have you had the house for a year yet? Just curious
Posted on 3/2/15 at 11:48 am to Teddy Ruxpin
quote:
Have you had the house for a year yet? Just curious
I just passed the 1 year mark, so it will be just over a year once it's refinanced.
Posted on 3/4/15 at 8:46 am to seawolf06
I did a sanity check with Quicken and they could not match the rate of the local lender. They also wanted to roll the closing costs into the loan which together added up to about $100 more per month.
Thanks for the advice.
Thanks for the advice.
Posted on 3/5/15 at 2:03 pm to seawolf06
Also, for those that might find this, I found another catch.
With Borrower paid PMI, you can have the PMI removed once you have 80% equity in your home. However, the only way to eliminate Lender paid PMI is to refinance the loan. The risk there is that by the time you have that much equity, rates could increase significantly, meaning you are paying that "premium" for the life of the loan.
With Borrower paid PMI, you can have the PMI removed once you have 80% equity in your home. However, the only way to eliminate Lender paid PMI is to refinance the loan. The risk there is that by the time you have that much equity, rates could increase significantly, meaning you are paying that "premium" for the life of the loan.
Posted on 3/5/15 at 3:41 pm to seawolf06
With lender paid PMI, there is nothing to eliminate
You aren't paying the PMI, so there is nothing to remove
You may get a slightly higher interest rate or pay a little more up front but there is no monthly cost there
You aren't paying the PMI, so there is nothing to remove
You may get a slightly higher interest rate or pay a little more up front but there is no monthly cost there
Posted on 3/5/15 at 4:03 pm to Croacka
quote:
With lender paid PMI, there is nothing to eliminate
The higher interest rate, or interest rate premium, is what could be eliminated.
Posted on 3/5/15 at 4:12 pm to seawolf06
I ended up starting the process myself.
Got rid of .5% off my rate and the PMI.
I'll take it
Got rid of .5% off my rate and the PMI.
I'll take it
This post was edited on 3/5/15 at 4:13 pm
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News