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Here is my question : is it worth to refinance to a conventional ?

The value of my home is 189,000 my debt is 131,000 (FHA) interest 4.25 and the premium of FHA insurance is 172.00 I just bought the house 9 months ago. The bank said I could refinance to a conventional loan with rate of 3 %I have to pay closing costs. Is it worth to refinance ? by johanc_831_812 from Dallas, Texas. Jun 18th 2012 Reply


Brad Cahoone (info@globalhomefinance.com)
#91 ranked lender in Texas - 1,042 contributions

Hello, if you are taking a 15 year and removing the monthly mortgage insurance then it sounds like it will make sense. Just multiply the current principal and interest payment times number of months left and subtract the new principal and interest payment times number of months left to see how much you are saving. That will show you the amount you are saving over the life of the loan. Look at how much you are saving if any a month on a 30 year and take the amount of closing costs divided by your monthly savings to figure how many months it will take to recoup those costs. If you plan on staying in the home longer than that period it also would make sense. If you need me to help you run some numbers let me know.Brad Cahoone - 972-724-3222 - bcahoone@globalhomefinance.com

Jun 18th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,414 contributions

Even if you included the closing costs into your loan it would be worth it.. You not only save the $172 per month in mortgage insurance, but you also lower you payment because the rate is lower.. You might even consider a 15 year mortgage.. Your payment will be less than $100 more, but you only pay for 15 years vs. 30 years... Also keep in mind that if you do refinance, you will get a prorated portion of the upfront mortgage you paid to FHA.. 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. 480-287-5714 WilliamAcres.com

Jun 18th 2012
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Peter Valletutti (PeteVall)
#118 ranked lender in Texas - 10 contributions

1. how long do you plan to reside in the home for the return on the closing expense?2. what are the closing costs?3. i'd would double check on that rate you were quoted at '3%'? are there points to be paid to obtain that rate?4. otherwise if your staying in the home for a good while, at least 7 years, no rediculous origination, closing expense, &/or points to get 'three%' or slightly higher? "Yes, Why Not!"peter 972-599-5900 / 972-752-7157

Jun 18th 2012
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Conan Henry (conan.henry12)
#107 ranked lender in Texas - 10 contributions

How long are you planning on being in your home?-Conan Henry936-499-6740

Jun 18th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

yes, if your value is still at the $189,000

Jun 18th 2012
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Jason Turner (apena@amcap1.com)
#124 ranked lender in Texas - 6 contributions

Hello JohancRule of thumb, if you refinance a loan within the first 5 years of closing, your rate should drop at least 2%.For more advice you can contact our company. We serve all of Texas including Dallas! Thank You,Andrea PenaAmcap Mortgage16000 Stuebner Airline Suite 340Spring, Texas 77379www.mrloanapproval.com

Jun 18th 2012
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Gilbert Barteau (gbarteau)
#104 ranked lender in Texas - 41 contributions

If your credit is decent and your home value is indeed close to $189k, it looks like it would make sense. You would eliminate the mortgage insurance payment and reduce your interest by over 1% annually. I am based in Dallas, and would be glad to offer a free quote. Contact me at 214-360-9991 or gbarteau@americashloans.com.

Jun 18th 2012
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Mary Papageorge (MaryPapageorge)
#95 ranked lender in Texas - 48 contributions

I thing that no one addressed is that you must be on title for 12 months to go off of appraised value. So, unless you want to bring money to closing - I personally don't think it's worth it.

Jun 18th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

Assuming your home could truly appraise for $189,000, then refinancing out of an FHA may make sense. Is it worth it? It depends on your closing costs. Did they tell you how much it is going to cost you to buy the rate down to 3%? There is a lot more information need to properly guide you. Ask for a Good Faith Estimate AND an Itemization of Fees AND a Truth In Lending Disclosure Statement for this proposal and also for one that has NO origination or Discount points. Have a knowledgeable Mortgage Professional from a different firm do an analysis for you as to which one is better. I would be happy to do this for you, and since I don't lend in TX, I don't have any bias for or against them. But it is important that you know exactly what you are getting. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Jun 19th 2012
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