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re: Refinancing home from 30 to 15 years...advice appreciated
Posted on 6/29/15 at 10:18 pm to lsubeerguy
Posted on 6/29/15 at 10:18 pm to lsubeerguy
quote:
What about 5.25% with 24 years remaining of the original 30? Should I look at refi?
At that rate, absolutely.
Just don't get suckered into the idea that a 15 year is necessarily better. It might be, but it could be quite profitable to extend it to 30 years if the rate premium is low enough.
That said, the bigger decision in your case is to refi and at that rate it's hard to imagine not doing that.
0
Posted on 6/29/15 at 10:24 pm to basiletiger
quote:
I'm going sit with loan officer Tomorrow to weigh all options.
Not a bad idea to explore options - just be aware the loan officer will try to tilt what might be a somewhat close call into a refi since that is how he/she will get paid. Honestly, in discussions like this if you haven't run spreadsheets out the wazoo already then you are at a disadvantage.
If you do refi, it probably doesn't matter all that much whether you go 30 vs. 15, the bank doesn't care. But based on what you're saying I still suspect just sticking with what you have and getting up to 20% equity to eliminate PMI is your best option.
Posted on 7/8/15 at 1:18 pm to foshizzle
Alright basically my home appraised for 219 and I owe $190,000. The rate for 15 years would be 3.375. I'm paying 3.8 for 30 on an FHA loan. My current loan that includes PMI, escrow, insurance is $1355. On the new loan if I pay the PMI upfront and the closing costs up front would cost me $5824 up front. In reality 4824 up front because I have $1100 in my escrow account that I would get back from my current loan. Seems like too much money in closing costs for me to refinance. Let me know what you guys think. My PMI on current loan is about $160 per month.
Posted on 7/8/15 at 1:41 pm to basiletiger
Also, just talked to suntrust mortgage I'm currently at 91% loan to value ratio on current loan and need to be below 80% to get current PMI waived which is costing me $175 per month on my current loan.
Posted on 7/8/15 at 2:13 pm to basiletiger
I'd stay put & take the extra $450 you would pay on a 15 in P&I and apply to 30yr and you'll knock out difference needed to drop PMI in 2 years, then have flexibility to pay off as 30 or 15 if desired.
Posted on 7/8/15 at 2:57 pm to lsubeerguy
quote:
What about 5.25% with 24 years remaining of the original 30? Should I look at refi?
Is there some reason you didn't refi when rates on a 30 year were down around 3%?
Posted on 7/8/15 at 11:10 pm to Jag_Warrior
Another PMI removal question for the experts. How much of a cushion do you need to feel reasonably comfortable the appraisal will go your way (through your mortgage company, GMFS,in my case) to try to get PMI taken off? Basically, bought the house 2 1/2 years ago at 174,900 (put 5000 down). Balence is down to $160,000. Friend of mine who is appraiser recently looked up comps in local neighborhood in 205-210's.
Obviously I need to get to the magic 20 % equity on mortgage to get PMI taken off. I guess my main question is what's a safe time to risk paying the 400$ for appraisal out of own pocket and have a reasonable idea I will have a high enough current value to principle to hit the 20%? For a little more info I bought in one of those development neighborhoods (same builder all neighborhood)and am on a lake, on a "4 bedroom lot" with a 3 bedroom house, put $10 k on a bunch of initial upgrades etc etc. so I feel like my appraisal would be on the higher end of recent comps I am seeing.
Obviously I need to get to the magic 20 % equity on mortgage to get PMI taken off. I guess my main question is what's a safe time to risk paying the 400$ for appraisal out of own pocket and have a reasonable idea I will have a high enough current value to principle to hit the 20%? For a little more info I bought in one of those development neighborhoods (same builder all neighborhood)and am on a lake, on a "4 bedroom lot" with a 3 bedroom house, put $10 k on a bunch of initial upgrades etc etc. so I feel like my appraisal would be on the higher end of recent comps I am seeing.
This post was edited on 7/8/15 at 11:14 pm
Posted on 7/8/15 at 11:30 pm to bigbowe80
What did your appraiser friend have to say? It seems that his advice would trump any that we could give, as he has seen the property and has already looked at the comps.
Posted on 7/9/15 at 12:05 am to basiletiger
I think eliminating PMI as quickly as possible gives you the best bang for your buck. If you put $20K toward the house, you would be able to eliminate PMI, saving you $2100 a year (essentially a 10% return on investment). Given that your income is over six figures, I wouldn't think it would take that long to knock out.
Check a mortgage calculator. Just running estimates, excluding PMI/insurance, you payment goes from $940 or so to $1340 a month.
Check a mortgage calculator. Just running estimates, excluding PMI/insurance, you payment goes from $940 or so to $1340 a month.
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