Refinancing without PMI
My house recently appraised for 240,000, have a 5.5% FRM 30-year with 196,000 remaining, I am paying PMI. I wish to refinance to a lower payment without the huge 5-6k closing costs I've heard off. I'm okay with a 5/1 ARM, and we'd like to move out within the next two years. Excellent credit (804 and 821) and our income is good as well. by carter_609_276 from Charlotte, North Carolina. Nov 15th 2011
Mick Jewell (mickjewell)
#6 ranked lender in South Carolina - 13 contributions
You can do a no closing cost refinance but they are generally.The 30 year is around 4.375-4.5% will no costs but pre-paids.The 5 year arm is around 3.5 but you still have to pay some of the costs. email mick.jewell@ikonfg.com if you would like more information.thanksMick Jewell
David Webber (DavidWebber)
#57 ranked lender in Texas - 71 contributions
One of the best chances to get a bonus after you relieve the PMI your after is to contact your current mortgage company and determine if there is any overage in your escrow account. Simply ask for it and they will send you a check right away. I am sure I can help. 214-771-8696 Dave
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
Depending on the length of time you've been paying the PMI and your original loan scenario, you should be able to get it removed from your current loan by providing a copy of the appraisal. If it was a FHA loan the rules are different and it cannot be removed. Because you are likely to sell within 2 years, refinancing to an ARM makes sense but you would want to keep your costs to a minimum - but still at a rate where you'll see instant saving. I'd be pleased to give you some options: phil.d@southerntrust.com
William J Acres (William_Acres)
#75 ranked lender in Arizona - 8,728 contributions
Contact a local mortgage broker, not a bank, and let them get you a Total cost Analysis... with that you can compare both products side by side and make your decision... WilliamAcres.com
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
You need to have a loan of $192,000 or lower to truly avoid dealing with PMI at all. You could likely do a no cost fixed loan about 1% lower, but you would still need to bring enough cash to have the loan at 80%. If you are sure you are moving in two years, it realistically makes NO SENSE to do any loan with out of pocket closing costs. Adjustable loans work differently, and it is probably unlikely you could get a no cost 5/1 ARM.
Bill Montgomery (wcmongo)
#26 ranked lender in North Carolina - 3 contributions
I hope this delayed answer finds you in good spirits. Your PMI is the problem here. You are over 80% LTVYou may look into lender paid PMI or buying the balance down. There are certainly no closing cost loans or loans that have minimal closing costs.Feel free to email me at william.montgomery@carringtonms.comBill Montgomery704-839-6296
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