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Hello CV and everyone, Wanted your brutal opinion because I am in the process of refinancing my FHA loan and just received the loan closing disclosure (CD) today but wanted to know if I'm doing the right thing and/or its worth it or Not.
My current FHA loan as follows:
Appraised Property Value $400K
Current Loan interest rate is 3.25% (closed this loan 13 months ago)
Original Loan Amount $393K
Current Principal Balance $383K (30yrs loan and nearly 29 yrs left).
Loan Maturity date 08/2049
Current Monthly payment $2400 (Principal $671+ Interest $1,038 + Escrow $690)
My FHA refinance loan will be as follows:
Appraised Property Value $400K
New Loan interest rate is 2.75%
Original Loan Amount $387K
Principal Balance $387K (30yrs loan).
Loan Maturity date 11/2050
New Monthly payment $2391 (Principal + Interest = $1,582 + Escrow $542 + PMI 267)
Cash to close from borrower (me) $2089
Thank you all for your feed back.
Hi Folks - I'm scheduled to close on a new construction home 8/30. The kids start school here in MD on 9/3. They enroll in new schools and I want to get them settled as much as possible. That background might come in handy for the scenario that I'm seeking advice on.
Here's the scenario: purchase price is $439,540. I'm currently doing an FHA loan with 3.5% down. My mortgage credit score is 726. The loan estimate has me paying $300 month in PMI. The issue is that in October I get my yearly sales bonus; at that time I can put down the ~$90K needed to cover the 20% down payment to remove PMI. Questions for those experienced in the industry:
1. Should / can I delay closing for two months? If so should I go conventional?
2. Should I move forward with the FHA loan and refinance quickly? How soon can one refinance?
3. Should I move forward with the FHA loan and simply pay $90K on the principal of the loan and reduce the amount to have PMI removed?
Thanks for your help in advance.
There is a .pdf file to download. Lots of interesting info. The abstract is below.
We analyze the effectiveness of consumer financial regulation by considering the 2009 Credit Card Accountability Responsibility and Disclosure (CARD) Act. We use a panel data set covering 160 million credit card accounts and a difference-in-differences research design that compares changes in outcomes over time for consumer credit cards, which were subject to the regulations, to changes for small business credit cards, which the law did not cover. We estimate that regulatory limits on credit card fees reduced overall borrowing costs by an annualized 1.6% of average daily balances, with a decline of more than 5.3% for consumers with FICO scores below 660. We find no evidence of an offsetting increase in interest charges or a reduction in the volume of credit. Taken together, we estimate that the CARD Act saved consumers $11.9 billion per year. We also analyze a nudge that disclosed the interest savings from paying off balances in 36 months rather than making minimum payments. We detect a small increase in the share of accounts making the 36-month payment value but no evidence of a change in overall payments.
Well, I've been trying to buy a house, I was shooting for a conventional loan but just found out that since I had a short sale I don't qualify for a conventional per new rules (funny, earlier in the year I was able to do conventional, who's making these rules? lol), lender said FHA will work. Is there any loophole that allows me to do conventional? If not I still want to see what you guys think about the numbers under my situation.
This is my situation:
- short sale in november 2011
- 680 credit score (thanks for advice was able to take out some disputes)
- 130K price
These are the numbers my mortgage person is offering under FHA:
- APR: 5.472%
- Finance charge 122,382
- Amount Financed: 123,982
- Total of Payments: 246,364
- Interest Rate: 3.875%
- Principal and Interest: $600
- Estimated Taxes and Insurance: 534
Not happy about the upfront 1.75 MIP Fee, but next november I will qualify for a conventional so I might look to refinance if the rates look appealing. Any advice will be greatly appreciated. I could wait and get another house maybe next november but with this house I could have roommates that will basically pay for all my expenses and the street has the space with just the right layout to accommodate all the cars, sweet!
Thanks and Happy New Year!