Home refi question

[DEADEYE1]

note

Is it worth refinancing to try and eliminate PMI? I have conventional 20year note with Fixed interest rate of 2.875 and I am wanting to try and hammer this thing down as fast as possible. My pmi is pretty cheap I’m wondering if there would be any benefits to doing a refi for this loan? Original loan was 185 and I owe 162.

Curious how you have 19 years left and your principal went down 23 grand in 1 year. Doesn't add up. If that's the case you will have this paid off in a little over 7 years. I wouldn't do a thing with your loan

[BLACKFINTURKEY]

Curious how you have 19 years left and your principal went down 23 grand in 1 year. Doesn't add up. If that's the case you will have this paid off in a little over 7 years. I wouldn't do a thing with your loan

Down payment

[gingib]

You aren't going to touch an interest rate like you have now plus you have to consider closings costs. You might be better off paying for an appraisal out of pocket. Home values have gone through the roof and you may exceed the 20% equity threshold now based on a current appraisal.

Amen!

PMI drops at 80% equity.

Do not REFI, makes no financial sense at that low of an interest rate

[gingib]

Down payment

I am still confused. A down payment would be prior to the loan. So 1 year surpassed and you paid down $20k?

If so you must be paying double your loan every month and attacking principle

[RWB]

I am still confused. A down payment would be prior to the loan. So 1 year surpassed and you paid down $20k?

If so you must be paying double your loan every month and attacking principle

I think he is saying the original home price was $185.

[gingib]

I think he is saying the original home price was $185.

I would assume that. But it says the original loan amount was for that.

[BLACKFINTURKEY]

Original loan was 185-down payment-16 months more less of mortgage=162k

[TexasBob]

We got PMI dropped by having an appraisal done. Payments+increased home values got us there easily. Was a $500 charge I think. Had to use the bank's preferred appraiser. Call your lender and ask.

[gingib]

Original loan was 185-down payment-16 months more less of mortgage=162k

Ok gottcha. So you loan amount was not $185k. But $169k. Sounds like home price was $185k.

So you paid down roughly $7-9k, which still seems like alot in a year

It makes no sense to refi at alot higher rate just to save $100 a month. You will lose money

Pay more per month towards principle. Then once hits 20% equity PMI will drop

[Preacher Man]

I doubt a rate and term refi would be a good idea for you right now.

Depending on the current appraised value of your home, and given how much you've paid down already, you may already have 20% equity.

Worth a call to your lender to see if you just have an appraisal done and drop PMI instead of going the refi route.

[DEADEYE1]

loan

Original loan was 185-down payment-16 months more less of mortgage=162k

It's not worth it to do a refi at your rate and pay closing costs. Just pay extra and apply that part to principal. Just make sure they apply it correctly and keep records.! if not they will screw it up every time!!!!
There is a place on your bill for additional principal.

good luck

[BLACKFINTURKEY]

Will getting the house reappraised make home owner insurance and taxes increase? I do t want to hurt my self to save a few bucks.

[captainsling]

I think if you can prove you have 20% equity you can have it cancelled. With today’s market it may be worth checking into.

[CentralTXHunter]

Will getting the house reappraised make home owner insurance and taxes increase? I do t want to hurt my self to save a few bucks.

An appraisal for your loan has no bearing on the county appraisal district that determines your taxable value. They’re very likely to hit you this year because of all the housing cost increases anyway.

As far as your insurance, you should be insuring your home for the correct replacement costs associated for the current environment. My broker and I have decided to increase coverages each of the last two years due to housing values increasing as well as the cost of labor and materials. The last thing you want is to find yourself underinsured experiencing a total loss event with 19 years left on your note. Find a good insurance broker and have these discussions annually at renewal time.


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[mmoses]

Will getting the house reappraised make home owner insurance and taxes increase? I do t want to hurt my self to save a few bucks.

Only if you tell them.