PMI
Since my house doesn’t have the equity it had in 2006, if I refinance I will have to pay PMI. Ironically, when I first purchased my place I didn’t have to pay PMI, so I’m not very familiar. How long will I have to pay PMI? Is there a formula to calculate how much PMI…
Since my house doesn’t have the equity it had in 2006, if I refinance I will have to pay PMI. Ironically, when I first purchased my place I didn’t have to pay PMI, so I’m not very familiar. How long will I have to pay PMI? Is there a formula to calculate how much PMI I will have to pay?
my pmi expires after 10 years maximum.
but of course I’m hoping that the house will appreciate, I’ll fix it up, and will be able to reappraise at a higher value sooner than that. But 10 years is worse case.
“Refi Plus” is good for 1-4 units properties including Coops and Condos.
Both Conforming loan amounts and Conforming Jumbo Amounts apply.
This is your tax dollars at work so go grab it while you can. I sure as hell am.
I’ve been having a similar problem – does the “refi plus” program exist for 2 family homes? I put 80% down 8 months ago, but have lost some value, and now would like to refinance at a 90% LTV.
That stinks. Which bank is your loan with? Some of the local regional banks are modifying their own loans instead of refinancing. What is your equity position these days?
I can’t predict the future but I’m thinking we are going to have rates above 7% by mid 2010.
Thanks Adam. Unfortunately, my current loan isn’t owned by Fannie Mae or Freddie Mac.
I have an I/O loan that comes due in five years at a 6% rate that’s fixed for another five years and then it becomes an ARM. I’m afraid that interest rates are not going to be as low in five years and I should just refi now, but it kills me to have to pay PMI.
If you don’t have PMI and your property has lost value you can refinance under the “refi plus” program up to 105% of the value of your property.
1. Your loan must be owned by Fannie Mae or Freddie Mac to use this program.
2. The higher the Loan to Value the more adjustment you will have. Rates are good but get a little more expensive once you go over 95%.
adahill@approvedfunding.com
Thanks DIBS!!!
Talk to a mortgage broker. The added cost of PMI may not make the refi economically feasible.