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Refinance on FHA Loan

I took my loan out right before they raised the monthly PMI fees. My home value is 470k and my balance is 447k on a 30 year 5% fixed loan. I am only paying 220 a month for PMI, when I try the different calculators it goes to 440. Do I have any options, or should I pay the balance down more then refi. I dont think all the fees are worth it if Im only saving like 200 a month. ALso I purchased my house in May of 2010. by missme_502_152 from Staten Island, New York. Jun 26th 2012 Reply


William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

Ralph is correct.. You should consider refinancing conventional. If your property is located in Richmond County, then you don't have to pay it down.. the loan limits for that area is $625K, but you will still have PMI... if you pay it down to $423K, you can do lender paid MI and they would add the premium to your financing... but you would not pay anything monthly... you should have your mortgage guy work up several scenarios and you can make your decision from there... 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 26th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,828 contributions

As long as your credit scores are sufficiently high enough, you will get a much better deal looking at conventional loans for this refinance. The best way to know for sure is to have your local Mortgage Banker/Broker work up the comparisons. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 26th 2012
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Mohammad Hussain (Lyons1)
#62 ranked lender in New York - 15 contributions

The PMI depends on the type of loan you have. Most likely considing your loan is a high balance loan, you are in an FHA loan. Depending on the time you took out this loan, the FHA MI premium was cheaper than the MI premium it is right now. So, when you price PMI over different calculators, it would depend on how the calculators are configured - whether it is for FHA or conventional purposes.Although PMI won't be available for a high balance loan with only 5% equity, you can explore refinancing into a conventional loan by paying down the principal to 90% of the current value of your home. With the current FHA MI premiums, I wouldn't think it would make sense to refinance. The savings wouldn't be substantial.Do let me know if you need further guideance.Thanks,Mohammad

Jun 26th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

I would pay down to 417k and refi conventionally with rates below 4% and pmi rates similar to what you have now

Jun 26th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#1 ranked lender in Florida - 2,241 contributions

It would be best to pay the loan down to $417,000 and refinance conventionally, you would need to pay the closing costs out of pocket to keep the loan at a confoming loan size which is $417,00 or below. We would need to make sure we could do a CEMA to avoid repaying NY State mortgage tax. If you would like to discuss further please give me a call at 201-962-3555. Michelle

Jun 26th 2012
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Gary H (Mod.Specialist)
#71 ranked lender in New York - 25 contributions

Have you talked to your bank about doing an FHA stream line refinance? I do not know your situation, played with the numbers possible savings around $400+ per month. Right now FHA 30yr interest rates are around 3.75%. Lowering your rate on your principle is easy to understand equals a lower monthly P/I payment. Your FHA loan was done after June 1, 2009, and it has NOT been more than 3 years, then you might get a slight refund around 10% of the PMI you paid at closing. Again I don't know your numbers; your new loan reflects (depending on your PMI company) about 1.25% upfront PMI and 1.25% annual PMI. It's worth a shot looking in to. I was an L/O for 7yrs, a broker for two years, the last four years doing loan modifications. In this time I have never heard of adjusting the PMI, before 5yrs or getting to 78% LTV. Good Luck

Jun 26th 2012
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