FHA Streamline

[F N 08 CALI]

I was think about refinancing to a lower rate, but if I refiance my MI is going up to $133 from $57. It would take about 7 years to get my loan under 80%. Should I refinance my loan?

 

My current monthly pymt is $897 new monthly payment is $779.

 

Is a 1.625% rate reduction worth it. upfront cost $1620

[Brian B The Loan Professor]

I was think about refinancing to a lower rate, but if I refiance my MI is going up to $133 from $57. It would take about 7 years to get my loan under 80%. Should I refinance my loan?

 

My current monthly pymt is $897 new monthly payment is $779.

 

Is a 1.625% rate reduction worth it. upfront cost $1620

That is not a lot of savings - when was your loan done? Are you sure you dont qualify for the lower PMI program?

If the plan is to stay in the home forever then yes the lower rate onc PMI goes away would be great - if it is a step up house you will be moving out of I probably wouldnt do it unless I could get the PMI at the same rate as you have now.

B

[F N 08 CALI]

I was think about refinancing to a lower rate, but if I refiance my MI is going up to $133 from $57. It would take about 7 years to get my loan under 80%. Should I refinance my loan?

 

My current monthly pymt is $897 new monthly payment is $779.

 

Is a 1.625% rate reduction worth it. upfront cost $1620

That is not a lot of savings - when was your loan done? Are you sure you dont qualify for the lower PMI program?

If the plan is to stay in the home forever then yes the lower rate onc PMI goes away would be great - if it is a step up house you will be moving out of I probably wouldnt do it unless I could get the PMI at the same rate as you have now.

B

 

 

I closed 08/2010. Is there away that I can keep my current MI rate, I am in California? I called two lenders and both told me that I would pay higher pmi rate if i refinance. I plan on staying in my home for a long time.

Edited July 13, 2012 by F N 08 CALI