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refi

The last post in this topic was posted 1055 days ago. 

 

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I don't even know if there is a point to refi right now, but I thought I'd run it by the board to see if there were any suggestions.

 

In an FHA loan right now, approaching 1 year.

Sale price of 273.

Current balance of 264.

 

If we did an appraisal right now, it would come back around 285 (very conservative estimate).

Maybe as high as 295.

 

 

Even in a best case scenario, we don't have 20% equity.

In a worst case scenario, we have well over 5%.

 

 

What are the possibilities of refi'ing into one of those conventional loans that only require 5% down with no MIP?

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As a general rule, high LTV loans without MIP/PMI come at a higher interest rate, and (like magic) your payment is about the same as your lower-rate FHA loan payment plus MIP.

 

I would take the $2,500 you'd spend on a refi and make an additional principal payment with your 1/1 payment, and continue to do this with any extra money you encounter every month, and then refinance as soon as you're down to 80% LTV.

 

If you make this a priority you'll get there more quickly than you think.

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That's what we are doing now, just wasn't sure if there was an obvious path to cut the MIP ASAP.

 

Patience is a virtue I guess.

 

 

The value of your home should go up over time, which will help speed this up.

 

Also, the lender on our primary residence, as one example, gives their best terms up to 85% LTV (lowest rates/fees, and no PMI), at least on their ARM products (not sure about 30/fixed since we weren't interested in those). They can't be the only lender who does this.

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With rising rates, NOW is the time to refinance.

 

Appraise the property yourself, realistically. If you have 20% equity, pull the trigger. Do not wait.

 

Give your appraisal to the appraiser during the inspection and discuss it with them.

 

This should always be done. Don't let the appraiser pick comps for you. It can backfire.

Edited by repairing

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