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my MI is 37 if refinance will be 57 with 20,000 less on balance owed

My feeling is the MI should decrease since balance owed is 20,000. less than original mortgage loan. I have been offered a refinance at 3.25% (3.87 now) but the MI will increase from 37. to 57. and my monthly mortgage payment only decreases 28. (from 574. to 546.) ,, is this a SCAM? Benefits the mortgage insurance folks more than customer (borrower) and with 20,000. less mortgage to insure. This a FIXED FHA 30 year by vaughn.pv203 from , California. Mar 11th 2015 Reply


Linda Wintersteen (Linda123)
#64 ranked lender in Arizona - 1,250 contributions

no ,IT IS not a scam. the new guildlines for FHA. iT all depends when you took out your first FHA, AND now, on any purchase or refi, you will have mortgage insurance .. THERE is no way around it .. I have a great broker for you in ca. linda yourloanpartnerforlife@live.com

Mar 11th 2015
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It's not a scam however the cost to benefit is too high in my book. There may be other options to illuminate monthly MI payments. Give me a shout at scottpwmson@gmail,com

Mar 11th 2015
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Crestico Funding (CresticoFunding)
#281 ranked lender in California - 335 contributions

Vaughn, It's not a scam but if I am not mistaking sounds like you have had this mortgage for at least 24 months, which if that is the case I don't understand why your Broker/Lender is offering you FHA (perhaps because there is more money in it for him) but you should defiantly explore other options, mainly a Conventional Loan which will save you ALOT more if not immediately but in a long run.if you like more information please feel free to call our Sr. Mortgage Advisor Houtan Hormozian at 310-933-4748 or via email houtan.hormozian@crestico.com

Mar 11th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

As the others have said, no it is Not a scam.

Mar 11th 2015
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Esta Hoffman (esta@estaglen.com)
#300 ranked lender in California - 29 contributions

I will also add my 2 cents worth here - agreed that it is not a scam, just in line with changes within FHA. One thing that you should look into is how long have you had your FHA loan - if it has been several years, your MI might drop off after 5 years, as this is how FHA used to be. I would look at that first - because if it does drop off, your current rate is pretty good. If it is doing to drop off and you refinance with a new FHA loan that new loan will have MI for the life of the loan. This is a big consideration.esta.hoffman@mwfinc.com

Mar 11th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

It's has to do with the federal government, specifically HUD and FHA, since they set the MI rates for government insured loans. The Rates change time to time to stay ln line with the claims being filed.. the more claims, the higher the MI rate will be.. and if you recall, we just went through a heck of a down turn regarding defaulting real estate loans.. so the MI variance is not a scam, but I would question why you would consider refinancing only to save $28 per month.. typical closing costs are going to be $2000 to $4000.. at a $28 per month savings it would take years for the loan to pay for itself. .. 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

Mar 11th 2015
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