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I have a conventional 30 year fixed with 28 years remaining, rate is 4.875% (Bank of America). Depending on how it appraises, we owe 80-85% on the loan. We are not currently paying PMI. I have one guy telling me I can refinance to VA jumbo (we are VA-eligible) but we owe around 475, and when I look at the max for our county it's 417, so I just wonder if he's telling me a story. Do I have any other options? Can I convert to FHA? Should I just let the low rates pass on by? Bank of America will lower the rate to 4.5 but then I have to have an appraisal & pay PMI if it doesn't appraise under 80% (which it probably won't).
I think your friend meant to say Jumbos start at 417K.
Re PMI, at 80-85% LTV expect to pay around .5% so roughly $150-250 a month, for several years until you hit 80% LTV. Refinancing from 4.875 to 4.5 will probably only save you around $100/month, so maybe not enough of a jump to risk having to pay that PMI for years to come, depending on how long you plan on staying in your home.
I have a conventional 30 year fixed with 28 years remaining, rate is 4.875% (Bank of America). Depending on how it appraises, we owe 80-85% on the loan. We are not currently paying PMI. I have one guy telling me I can refinance to VA jumbo (we are VA-eligible) but we owe around 475, and when I look at the max for our county it's 417, so I just wonder if he's telling me a story. Do I have any other options? Can I convert to FHA? Should I just let the low rates pass on by? Bank of America will lower the rate to 4.5 but then I have to have an appraisal & pay PMI if it doesn't appraise under 80% (which it probably won't).
Hi Reader123,
You'll have PMI in some form or another on any conventional loan when your balance is over 80%. On a VA loan it's possible to exceed the county limit as long as your entitlement, equity or a combination of both equals roughly 25% of your balance.
On a VA loan it's possible to exceed the county limit as long as your entitlement, equity or a combination of both equals roughly 25% of your balance.
I just found this by Googling after posting this. We do plan to stay in our home indefinitely & when I calculated, we do have 25% in entitlement + equity, so VA seems to be the best way to go for us.
Now I just need to find someone reputable to do this...I found a bad report on the company who initially offered me this and that makes me hesitate.
I just found this by Googling after posting this. We do plan to stay in our home indefinitely & when I calculated, we do have 25% in entitlement + equity, so VA seems to be the best way to go for us.
Now I just need to find someone reputable to do this...I found a bad report on the company who initially offered me this and that makes me hesitate.
*have a conventional 30 year fixed with 28 years remaining, rate is 4.875%
*owe 80-85% on the loan. We are not currently paying PMI.
* we owe around 475,.
Let me ask a stupid question?..........
Why are you looking to refinance?
You already have a good deal. By refinancing going to another lender, you going to pay $23,000+ in closing costs, to drop 05% to 1% on the rate. What it would cost you to do the loan, if you put that into your mortgage, you would be so much better off!!! If sounds like you letting some loan officer talk you into a refinance when you don't need one.
If your really concerned around the interest rate (one of the last tax write off's), pay extra into the payment. On a 30 year loan, one extra payment lowers the net effective rate 2%, knocks off 7.5 year from the term, and your reported as more responsible to the CB's. I remember speaking to a person who told me what he was doing. He divided his monthly payment into weekly payments and was looking to payoff the house in 17 years.
Another option is to ask BOA about a streamline refinance, have to have an 80% LTV. Find out how much you need to buy down the principle to qualify.
One thing I am noticing across America - many places, the value is start to rebound. Check out your value on zillow.com, seeing what your neighborhood value is and if it is going up. Last year had several foreclosures in my neighborhood, lost about $200k in value from three year ago. The last few months my value is gaining around $15k monthly....
A streamlined refinanceis when you refinance and stay with the same lender, there is no title and attorney charges. No loan origination fees or taxes. I have done two - 5.25% to 4.75%, to 4.5% - the last one cost me $990 including the appraisal.
Last edited by Modification Specialist; 01-13-2012 at 12:53 PM..
They have some bad reviews, too, but maybe they all do. It seems that only a few VA lenders will use the equity in the home in calculating the 25%. It's easy to find reviews on the big companies doing conventional loans but I am having less luck finding a comprehensive review site for VA loan providers.
They have some bad reviews, too, but maybe they all do. It seems that only a few VA lenders will use the equity in the home in calculating the 25%. It's easy to find reviews on the big companies doing conventional loans but I am having less luck finding a comprehensive review site for VA loan providers.
I was referring to the person (me) in the thread that confirmed it.
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