Can I refi at 85% LTV on a jumbo in California.

You could maybe improve the rate by 1/2 a percent if you had a little more equity. Basically, there are tons of people who would kill to be in the predicament you are in. I, myself am stuck with a 5.625 rate for several reasons and I can't refinance.

Enter yWe can do this, however the new loan would need PMI since the loan to value is now over 80% loan to value.

Chris, I wouldn't be in a rush to add PMI if you're only dropping the total payment by $60, as long-term you'll actually be in a worse over-all situation due to the long-term situation with PMI's tax deductibility. Your rate is exceptional currently, but if refinance you must, I recommend going back to your friend at Wells & getting a new loan with a piggyback HELOC to cover the extra 5%, and consider aggressively trying to pay that down before the Prime rate starts its eventual journey upward.

You need to do the cost benefit analysis. You aren't going to get 4% unless you either pay the closing costs up front or add them to the balance. Let's assume you only pay 1.5% in closing costs. That's a cool $7800 cash. To save $60 per month means it will take you 130 months or nearly 11 years to breakeven. Under the law, a lender is required to allow you to eliminate PMI only when your loan balance is below 80% of the original appraised value. Sure, in the past, many banks would allow you to cancel once you provided an appraisal showing you had 20% equity, but after the market meltdown, that will never happen again. Even at 4% it will be at least 6 years before you are at that level. And there is no guarantee that the PMI rules won't change making it harder to cancel the PMI if your value goes down. I say don't do it. What I would encourage you to do is work with a local Mortgage Banker/Broker and instead do an 80/5 with an 80% first and HELOC or 2nd from your local credit union for the balance. This way, you avoid the MI, get a much better rate on the 1st, and then if you keep paying the same total payment each month, but plow the extra toward the 2nd, you'll have it paid off in no time. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

There has been a great deal of confusion between true jumbo (or as it is now often called--super jumbo or SJ) and jumbo conforming (JC) guidelines and interest rates since the creation of JC loans. From what you have said, this is the loan you have which has much more "forgiving" guidelines/interest rates than a SJ. When you say "...1 MONTH late..." do you mean your current loan was originated after May 31 of 2009, which is the latest it could have been in order to qualify for the H 2 program? If not, when was it originated? If the answers to these questions are what I think they are, I believe there may be a way for me to help you refinance your home that will truly make sense dependent upon its FMV, especially if it's in the $600K realm. What is your address? Give me a call 16/7, or email me, and I'll be happy to explain to you how this could be possible. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 39 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.