Help with Refinancing Options

[JDUBB]

I am interested in taking advantage of the historic low rates but don't want to put any more $$ in my house. I am interested in lower rates, even if it means a shorter amort period and higher payments.

 

Here are the details of my current FHA loan:

 

Current Principal Balance:$660,254.70Current Interest Rate:4.125%Loan Origination Date:10/28/2009Original Loan Amount:$687,617.00First Payment Due Date:12/01/2009Loan Type:FHA Residential/MIP ARMMaturity Date:11/2039

 

Next ARM Adjustment:02/01/2015 <br class="Apple-interchange-newline">Scheduled Payment BreakdownNext Payment Due:03/01/2012Principal & Interest:$3,332.54Homeowner's Insurance(s):$58.50MIP Mortgage Insurance:$302.61County Tax:$556.07Shortage:$20.43Total Scheduled Payment:$4,270.15

[Brian B The Loan Professor]

Welcome to the forum - Your situations timeline is going to make saving anything difficult - The reason is that PMI changed between when you purchased and now - You are probably paying a rate of .55% for PMI a year (divided into 12 payments) That has since more than doubled and is now 1.15%

If you go to a fixed rate loan you may be ok to go 15 years and had 10% equity the PMI would be less - Regardless getting out of the ARM into a fixed rate is something you will want to work towards if you intend on staying there longer than the term of your adjustable.

 

That new PMI though will negate a lot if not all of the savings you would have received with a lower rate.

 

B

[JDUBB]

Thanks for response. Forgot about the PMI change.

Are there no 90% LTV (80/10) loan options out there other than FHA? I have excellent credit and income and no other debt.

 

Also, can I pledge investments for a portion of down payment? Or is that a thing of the past?

[Brian B The Loan Professor]

Thanks for response. Forgot about the PMI change.

Are there no 90% LTV (80/10) loan options out there other than FHA? I have excellent credit and income and no other debt.

 

Also, can I pledge investments for a portion of down payment? Or is that a thing of the past?

They may be out there but I dont think they are out there for Jumbo size loans - If you can afford to go with the 15 year FHA and have 10% equity the PMI is considerably less (even less than what you have now) You could really cut down life of your loan AND keep from giving as much away in interest and PMI.

B

[luckydriver]

dont forget PMI is gone after 5 years of 78% so if you are gonna save more and stay longer i may pay to do it with short term pain for long term gain..u gotta run the numbers and see how long you will be there to make it back