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Best refinance option with no PMI

bought my home on 9/2009. current balance of 615,000 with value of 705,000. current rate is 4.25% fixed for 30 with FHA that has about $300 of MI. taxes 6500 a year, insurance 2500 a year. would like to refi out of the MI and willing to do a small principle paydown. ideally, i could find someone who does 85% LTV with no PMI but most of what i've seen so far is a 80/5 with a heloc. i still save a little monthly, maybe 1-2 years to equal closing costs. are there any lenders who can 85% LTV no PMI in CA? should i consider a lower term like 15 year with a 5/1 arm or 7/1 arm? so much information and hard to understand what is best. any help would be appreciated. by elismush173373 from , California. Jan 16th 2014 Reply


ALLEN PERRY (aperry)
#367 ranked lender in California - 8 contributions

I can go up to 90% with no mi on a 30 year fixed rate loan. Please call me at 888-842-7296. Al Perry-Alton Lending

Jan 16th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

There might be some refinance options out there available to you, however your interest rate is lower than what would be offered to you today.. The best advice I can give you, believe it or not would be to wait till September. With your FHA loan, guidelines say you have to pay MI for a minimum of 5 years, and pay down your loan balance to 78% of what you borrowed.. Come September (the 5 year mark), your home will be worth a bit more and your balance would be a bit less... add the cash to buy down your balance, and you could be at 78% LTV. With that you can drop the FHA MI, Keep your 4.25% rate, and not have to pay the costs to refi.. So my advise.. Don't refi... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 16th 2014
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William i misspoke - it expires in 2010, not 2009 so another year and a half with FHA. paydown to get to 78% would be a big amount, ie almost 100k since it's based on original appraisal value not current value. thus why i'm looking at a refi.

Jan 16th 2014
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ALLEN PERRY (aperry)
#367 ranked lender in California - 8 contributions

Your loan is not a jumbo loan. Your loan would be considered a high balance fanniemae confroming loan based on the information that you have presented. I can get your loan done at rates close to what you are currently paying without PMI. Give me a call at 888-842-7296 and I will go over th details with you and you will then be able to make an informed decision. Thank you, I look forward to earing form you. Al Perry - Alton Lending

Jan 16th 2014
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Blake Kleckner (BlakeK)
#386 ranked lender in California - 258 contributions

Getting out of FHA MI in 5 years is a myth. It typically takes 9 to 11. Unless you pay down your balance so that it is no more than 78% of the purchase price (possibly 80%) at the end of 5 years, you cannot eliminate the MI. I recently refinanced to clients out of FHA loans into conventional ones and eliminated their MI. Fortunately, both had homes whose FMVs were less than 80%. That is not the case with yours because your home would need a $768,750 FMV to achieve an 80% LTV. There are loan programs available, depending upon your ability to qualify for them, that don't require monthly MI to be paid at your current 87% LTV. Most likely, though, your interest rate will be more than 4.25% unless, perhaps, you are willing to have a shorter term or ARM loan as you mentioned above. However, the total monthly payment at the higher interest rate should be significantly less than what it is right now with your $300/mo. MI payment. In addition, all of your interest will be tax deductible instead of you paying $300/mo. in non-tax deductible MI. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to discuss your situation with you. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 46 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Jan 17th 2014
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