You can get high 2.7X or 2.8X right now on a 15 year loan, or you could in July at least. I also am not exactly sure when it will drop off on some of the newer FHA loans, I believe there was a program started in teh last 2-3 years that is WONT' ever drop off unless you refi. Which is high way robbery but the government forced it upon banks ot offer.
You can get high 2.7X or 2.8X right now on a 15 year loan, or you could in July at least. I also am not exactly sure when it will drop off on some of the newer FHA loans, I believe there was a program started in teh last 2-3 years that is WONT' ever drop off unless you refi. Which is high way robbery but the government forced it upon banks ot offer.
Yea I think that is the case on either fha or va, where the mi is through the life time. I've never done a govt loan and really don't do many conforming either. I have noticed an increase in clients taking points and was wondering why that was. Your explanation makes sense. A little off topic but a lot of financial advisers, whose client base isn't your median household, steer their clients towards IO products which will offer a lower payment than something that is PI and at they end of the year they write of the interest. Thus increasing cash flow and really no intention of putting equity into the home.
I'm already under 80% of what my original appraisal on my house was but my loan wasn't as high as the appraisal. Basically i bought my house as a short sale in 2009 for 134k. At that time the appraisal came in at 164k or 174k, i dont remember. and currently I owe about 113k. The PMI i'm paying is $82.
Like I said, even with the higher taxes there is no way it would come close to the $82 i'm currently paying in PMI. I would have a hard time thinking my taxes would go up more then $10-20 a month.
Basically since I already pay an extra $131 a month towards the principal each month when i make the payment my idea was to get a 15 year refi and if the PMI dropped off my payment would likely be less then i'm already paying anyway, and it would reduce my loan by roughly 3-4 years then if i keep just paying the extra each month on whats left of my 30 year loan.
Easy, if you are already under 80% of your previous appraisal you don't need to do anything except call your currentl loan prover and say, "LISTEN HER MOTHER FUCKER, GIVE ME MY MONEY BACK!" You should have no reason to refi to get out of PMI, unless you did get one of those loan products I don't know much about but know they exist, which is where PMI never drops off.
No reason to tell anyone here your credit score. Hopefully you are tier 1 and that should net you the best rate possible, which in July I think was around 2.7X -2.8X for a 15 year. Probably low 3.2-3.3 for 30 year.
Google Bret whissel amortization calculator, play with it. You will no longer want a 30 year and see the only thing you want is a 15 year. Mortgages are no different than cars, there are litterally a million of options and they are ALL negotiable believe it or not. They have profit to surrender and different options.
Talk to 5+ Mortgages people until you find one with the best options for you and one you trust. Also try to find a credit union or two and talk to them, they can sometimes offer better packages. Ask the bank if they are selling their mortgages off or holding them, find a bank doing each and see if they can offer you a better deal either way.
Cool thanks.
My loan is a regular old loan so it shouldn't be anything big. I believe they are using my purchase price and not the original appraisal price to determine the whole PMI thing, and in that case im only at about 84% LTV currently. But if you use the appraisal i'm well under 80% LTV. I don't know if it makes a difference or not but I did buy in the middle of the crazziness when everything was dropping off a cliff, especially in Florida. The loan on my house was 227k and i bought it short sale for 134k
one reason to have a 30 year mortgage is for safety reasons.
if you have a 30 year you should be able to make pre-payments that go directly to your principle.
what I did was give a 30 year and make double payments, then if times ever got tough I could always "cut" back to a normal payment.
o btw you don't 'get' a mortgage from a bank you 'give' a mortgage to the bank
a mortgage is a debt instrument
if you have a 30 year you should be able to make pre-payments that go directly to your principle.
what I did was give a 30 year and make double payments, then if times ever got tough I could always "cut" back to a normal payment.
o btw you don't 'get' a mortgage from a bank you 'give' a mortgage to the bank
a mortgage is a debt instrument
don't forget that the extra payment goes toward principle and it lowers the number of payments from 180 to 108
here is an example of a 30yr at 6% and a 15 yr at 3% and making double payments on the 30yr 6% loan
$100k 30 yr 6% = 360 payments x $600 = 216k
$100k 15 yr 3% = 180 payments x $690 = 124k
double payments on:
$100k 30yr 6% = 108 payments x $1200 = 129k
so yes, making double payments will cost 5k more, but the loan is paid off sooner and if shtf then you can revert back to the normal payment.
you don't want to call a bank asking for a refi because you just lost your job and you want to lower your payment from 690 to 600
here is an example of a 30yr at 6% and a 15 yr at 3% and making double payments on the 30yr 6% loan
$100k 30 yr 6% = 360 payments x $600 = 216k
$100k 15 yr 3% = 180 payments x $690 = 124k
double payments on:
$100k 30yr 6% = 108 payments x $1200 = 129k
so yes, making double payments will cost 5k more, but the loan is paid off sooner and if shtf then you can revert back to the normal payment.
you don't want to call a bank asking for a refi because you just lost your job and you want to lower your payment from 690 to 600
There is something to say for having no debt. But if someone is discipline they would be better off keeping a 30 year mortgage and investing the rest. Over the next 30 years you should be able to out perform the low interest rates.
Interest is is also on of your big tax deductions.
PMI is not guaranteed to be removed from a loan at 80 percent. So if your loan to value is above 80 percent you should look at an option of paying a lump sum for the insurance versus monthly payment.
I originated over $250,000,000 in home loans. I could do a 25 year loan and pay a lump sum and have a lower monthly payment than a 30 year loan with monthly PMI. Most of the loan officers had no idea this was even an option.
last thing none of the competition knew was that two things happen with a lower rate. One is your pay,net is lower. Two is more of the payment goes to principal. So if you sell the home in say 5 years......your outstanding balance will also be lower.
Interest is is also on of your big tax deductions.
PMI is not guaranteed to be removed from a loan at 80 percent. So if your loan to value is above 80 percent you should look at an option of paying a lump sum for the insurance versus monthly payment.
I originated over $250,000,000 in home loans. I could do a 25 year loan and pay a lump sum and have a lower monthly payment than a 30 year loan with monthly PMI. Most of the loan officers had no idea this was even an option.
last thing none of the competition knew was that two things happen with a lower rate. One is your pay,net is lower. Two is more of the payment goes to principal. So if you sell the home in say 5 years......your outstanding balance will also be lower.
The other advantage of 30 versus 15. If you invest the differnce and have cash..... You have more flexibility. If you have $50000 in equity in your house and lose your job or become ill and go ask the bank for a loan on your equity....they won't give you one. If you have part of it in stocks or some other liquid investment....you don't need a loan in an emergency.
True, you always have the option to pay your closing costs. But out of all the refi's I've never had a customer not want them rolled in. You only see people paying closing costs out of pocket on a purchase. But yeah you can pay out of pocket if you want. Buying points is definitely a great option for lowering rate which will lower payment. And tax deductible like you said.
