Posted on: 09th Apr, 2009 08:54 pm
if i refinance now to take advantage of the low interest rates, i run the risk of losing equity in my home and having to pay pmi. should i do it?
i currently have approx 21.5% equity in my home (according to the appraisal price two years ago when we bought the house). i have a 30yr fixed w/ no pmi @ 6.5% apr. if i refinance to a low 5% apr i will need a new appraisal. chances are the new appraisal will drop the value of my home and i will be required to pay pmi.
i will still save approx $150 per month (includes pmi) over my current payment. i am having a tough time dealing with the principal of paying pmi vs. the monthly savings. i especially don't want to pay pmi since i am not paying it now.
any suggestions?
i currently have approx 21.5% equity in my home (according to the appraisal price two years ago when we bought the house). i have a 30yr fixed w/ no pmi @ 6.5% apr. if i refinance to a low 5% apr i will need a new appraisal. chances are the new appraisal will drop the value of my home and i will be required to pay pmi.
i will still save approx $150 per month (includes pmi) over my current payment. i am having a tough time dealing with the principal of paying pmi vs. the monthly savings. i especially don't want to pay pmi since i am not paying it now.
any suggestions?
Hi Chris P,
You can pay 20% down payment in order to avoid paying the private mortgage insurance. If you do not pay the 20% down, the lender will ask you to go for PMI.
You can pay 20% down payment in order to avoid paying the private mortgage insurance. If you do not pay the 20% down, the lender will ask you to go for PMI.
that's not the answer chris was seeking, but here's one. chris, your savings of $150 would seem to most of us to be plentiful. i guess it's not that much for you.
you do have the option of paying down the balance of your loan to the 80% threshold to avoid mi.
you do have the option of paying down the balance of your loan to the 80% threshold to avoid mi.
Forget the appraisal two years ago -- ancient history and probably a high water market rignt now.
Check to see if your loan is "held" by Fannie Mae. If so "DU refi" or "Du refi Plus" should be a fit -- no MI on current loan; no MI on new loan up to 105% LTV.
Check to see if your loan is "held" by Fannie Mae. If so "DU refi" or "Du refi Plus" should be a fit -- no MI on current loan; no MI on new loan up to 105% LTV.
Thanks for the responces.
gmakerly: I'd rather not put more money down to get back to 80% on the new LTV. We put 20% down just two years ago! If the new appraisal comes really close to 20% LTV we may consider putting more money down to reach 20% and not have to pay PMI. $150 per month would be very nice (even with PMI), which is why we are considering the REFI.
Not sure if we qualify for the DU REFI. It would be nice to refi w/o a new appraisal! How do I tell if Fannie Mae owns the mortgage? Currently we write the check to CHASE.
gmakerly: I'd rather not put more money down to get back to 80% on the new LTV. We put 20% down just two years ago! If the new appraisal comes really close to 20% LTV we may consider putting more money down to reach 20% and not have to pay PMI. $150 per month would be very nice (even with PMI), which is why we are considering the REFI.
Not sure if we qualify for the DU REFI. It would be nice to refi w/o a new appraisal! How do I tell if Fannie Mae owns the mortgage? Currently we write the check to CHASE.
You can contact your lender and check out if your loan is Fannie Mae backed or not.
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instead of emailing him back and discussing your scenario, i'd say call chase first and see if it's a fannie mae loan. in all likelihood it is, since you had 20% down payment to begin with and no mortgage insurance. if it were an fha loan, you'd have mortgage insurance premiums monthly.
Chris.
Slap up the side of your face CALL CHASE. Until June closing there's a third way Option A Plus. This covers other base and provides for a quick close but may be available only through your current servicer not all loans are eligible but it avoids delays in verifying income and assets.
DU refi is next best again current servicer. Problem is Chase is going through menopause very strange but if there a it may be best execution. Everyone has more business than they can handle right now.unless they increase cost to high levels which makes me suspicious of the solicitation on this thread. Ackerly is generally too for my taste but he correct on this call.
DU refi Plus is always there. Its for the great unwashed company wise; not you. Again, consider the environment“ a ton of loans, so why would someone want to talk on someone else dirty laundry. You sound fairly straight up if I did take your call. Time constraints are everyones problem right now and I suspect you have a better chance getting through to Chase. In the meantime Id be suspicious of anyone who says I can help, Call me. If you are as you present yourself, you deserve to be one who can take advantage of Fannies largess. Hopefully you werent sold with credit enhancements “ that blows the whole deal. For some strange reason this site will not permit helpful links while allowing in signature blocks. Try the obvious route for Fanniemae and click on link on far right column to see if your mortgage is “ no guarantee if it checks for though.
Slap up the side of your face CALL CHASE. Until June closing there's a third way Option A Plus. This covers other base and provides for a quick close but may be available only through your current servicer not all loans are eligible but it avoids delays in verifying income and assets.
DU refi is next best again current servicer. Problem is Chase is going through menopause very strange but if there a it may be best execution. Everyone has more business than they can handle right now.unless they increase cost to high levels which makes me suspicious of the solicitation on this thread. Ackerly is generally too for my taste but he correct on this call.
DU refi Plus is always there. Its for the great unwashed company wise; not you. Again, consider the environment“ a ton of loans, so why would someone want to talk on someone else dirty laundry. You sound fairly straight up if I did take your call. Time constraints are everyones problem right now and I suspect you have a better chance getting through to Chase. In the meantime Id be suspicious of anyone who says I can help, Call me. If you are as you present yourself, you deserve to be one who can take advantage of Fannies largess. Hopefully you werent sold with credit enhancements “ that blows the whole deal. For some strange reason this site will not permit helpful links while allowing in signature blocks. Try the obvious route for Fanniemae and click on link on far right column to see if your mortgage is “ no guarantee if it checks for though.
If you are sure to save $150/- per month after refinancing. it would be a good idea to get that any pay that $150 saved towards the principal of the house, which can help you to get back your 20% equity much sooner.
Make sure to keep the house for little longer than you anticipated, due to this market.
Make sure to keep the house for little longer than you anticipated, due to this market.
so i'm "goody-goody." or was he referring to that guy named "ackerly"?
if i'm going to be criticized for my posts, it'd be nice to be given a modicum of respect. but of course i don't know who to yell at because he/she wasn't signed in!
life goes on
if i'm going to be criticized for my posts, it'd be nice to be given a modicum of respect. but of course i don't know who to yell at because he/she wasn't signed in!
life goes on
We do not qualify for the Obama Home Affordable Refi (or atleast that is what CHASE says). To qualify your LTV needs to between 97% and 105%. Our current LTV is slightly less than 80%.
That is completely incorrect. As long as you are 105% or below. Sounds like you are getting the run around with Chase. Why would they want you to refi when you are currently paying them more in interest than what they would get if you refi'ed to a lower rate.
I would contact a broker and find out if you truly qualify. Best of luck!
I would contact a broker and find out if you truly qualify. Best of luck!
Chris,
A big HUH?! Read announcement 09-04 for yourself. Wheres this LTV need to between 97% and 105%? Go to the web site you might associate with the name and try the link for 2009 announcement. Yes, I think its juvenile for this site to prohibit site address that might help consumer while presenting site looking for business but that life. I may have been played into believing you are a truly deserving homeowner but the scenarios you lay out is a gimme for this program get the benefit of lower rate without the offset for MI. No idea of why Chase is balking.
OK, now for Ak-Ak. Points to you for my misspelling. Still in fairness I think you have to admit this site is a bit Lake Woebegone. Chris seems someone with a validfit:; some others need a reality check. Ego alienating answers only prolong the answer only prolong the pain. OK, I have a bias against Bloomfield; CG had an interesting corporate culture. Dont know where CG has morphed to but I see its former personality influencing this site. Sorry, I dont think honest inquiries are not getting realistic answers (in many cases) so I dont want to be associated with the site by registering but only chime in when I think the answer are really off base. So yell at me in absentia. I still think Chris, if hes been truthful, desires a break.
Ashley, good for you! Still Chase shouldn't care (expect to the extent they paid for servicing). Refi with DU refi plus is in their best interest.
A big HUH?! Read announcement 09-04 for yourself. Wheres this LTV need to between 97% and 105%? Go to the web site you might associate with the name and try the link for 2009 announcement. Yes, I think its juvenile for this site to prohibit site address that might help consumer while presenting site looking for business but that life. I may have been played into believing you are a truly deserving homeowner but the scenarios you lay out is a gimme for this program get the benefit of lower rate without the offset for MI. No idea of why Chase is balking.
OK, now for Ak-Ak. Points to you for my misspelling. Still in fairness I think you have to admit this site is a bit Lake Woebegone. Chris seems someone with a validfit:; some others need a reality check. Ego alienating answers only prolong the answer only prolong the pain. OK, I have a bias against Bloomfield; CG had an interesting corporate culture. Dont know where CG has morphed to but I see its former personality influencing this site. Sorry, I dont think honest inquiries are not getting realistic answers (in many cases) so I dont want to be associated with the site by registering but only chime in when I think the answer are really off base. So yell at me in absentia. I still think Chris, if hes been truthful, desires a break.
Ashley, good for you! Still Chase shouldn't care (expect to the extent they paid for servicing). Refi with DU refi plus is in their best interest.
well, i see it's easy to paint with a large brush. bloomfield is far more than connecticut general, but let me stop that before i get accused of raving. it's comfortable living here - say no more.
i really don't get the reference to "ego alienating answers ony prolong the answer only prolong the pain."
i absolutely agree with your claim that many answers are not at all realistic. the forum is comprised of a wide variety of people - some are here only to advertise, some are here to learn but turn what little they learn into misguided advice for others, but there are a great many of us who honestly care enough about our communities, our fellow travelers and ourselves to give sufficiently to others that they might be edified.
i have no need nor a desire to yell at anyone, in absentia or not. and i don't disagree at all with your stance that chris needs a break. last - yes, indeed, chase ought not to care about whether he refinances or not. they make money on every single new loan, whether a refinance or a purchase.
honestly, i'd rather answer real consumer-oriented questions than stuff like this.
i really don't get the reference to "ego alienating answers ony prolong the answer only prolong the pain."
i absolutely agree with your claim that many answers are not at all realistic. the forum is comprised of a wide variety of people - some are here only to advertise, some are here to learn but turn what little they learn into misguided advice for others, but there are a great many of us who honestly care enough about our communities, our fellow travelers and ourselves to give sufficiently to others that they might be edified.
i have no need nor a desire to yell at anyone, in absentia or not. and i don't disagree at all with your stance that chris needs a break. last - yes, indeed, chase ought not to care about whether he refinances or not. they make money on every single new loan, whether a refinance or a purchase.
honestly, i'd rather answer real consumer-oriented questions than stuff like this.
I called CHASE again and spoke with someone else who said I did qualify for the Obama plan. Although I didn't qualify for the streamline plan, I did qualify for the regular Obama plan. So I am now one of the happy Americans who have refi'd using the new plan.
Best of all I still do not have to pay PMI!! I love Obama! Although I didn't vote for him, I still think this incentive is a great thing. Once all the paperwork is finished I'll save a little more than $200 a month on mortgage payments.
Thanks for all the help from this forum. I wouldn't have known about the Obama plan w/o this discussion. I did notice that the Obama plan is on Yahoo!'s front page today. So maybe I would have figured it out eventually...
Best of all I still do not have to pay PMI!! I love Obama! Although I didn't vote for him, I still think this incentive is a great thing. Once all the paperwork is finished I'll save a little more than $200 a month on mortgage payments.
Thanks for all the help from this forum. I wouldn't have known about the Obama plan w/o this discussion. I did notice that the Obama plan is on Yahoo!'s front page today. So maybe I would have figured it out eventually...