topic Re: Need help deciding which refinance? in Mortgage Loans

Need help deciding which refinance?

darrell — Fri, 16 Nov 2012 02:27:23 GMT

I can't decide which mortgage to pick here is the scenario. I really want 15 year loan.

Current Loan I am paying
Amount $148,650 FHA
Interest Rate 6.130 %
P&I = $958.42
Origination Year Aug 2008
Loan Term 320 months remaining
Current House Value: Zestimate®: $136,039

My refinance options from (better compared to Chase options) Southern Funding Alliance USA, LLC :

30year FHA – 3.25% - $2235.00 / credit
new loan - $154,200 (I need to verify why this not near current balance of 148.6k)
P& I - 671.16
PMI –70.68
Cash to close – about 850.00

15 FHA – 3.125% - $0 / credit
new loan - $154,200 (I need to verify why this not near current balance of 148.6k)
P& I - $1074.17
PMI – 70.68
Cash to close – about 3700.00

or I can refinance to conventional at :

15 – 2.875%
new loan - current balance - how ever much I put down (this depends on the appraisal value)
P& I - $910 (highly depends on what appraisal value of home comes in at.
PMI – 70.68
Cash to close – $13.5k to $15k

The first two or FHA Streamline, so no home appraisal required and clearly I will be saving about $100k and hardly no money down. I can choose the 30 year and just pay extra payments per months to pay off the mortgage in 15 years.

To get the conventional loan my LTV needs to be at or below 95%. Currently according to Zilliow I am at $136k. Current balance at $148.6k. The mortage guy says, to get the 2.875 (or lower), I need to be ready to pay about $15.k at closing, if appraisial comes back at $140k (he thinks Zilliow is a bit off scale). But I will still have to pay that PMI until LTV is less than 78%.

I am not sure which route to go.

Re: Need help deciding which refinance?

webhopper — Fri, 16 Nov 2012 07:21:11 GMT

darrell wrote:
Hello, how do I calculate my new loan amount if I refinance existing FHA loan via FHA Streamline Refiance.

Remaining balance: $148.5k
Bought on : Aug 2008

However, is calculating my new loan amount to $154.2k. I am not understanding why? I am choosing no-appraisal option.

I calculate my new loan amount to be $148.5k plus upfront mortgage insurance premium. That comes out to $148514.85

Thanks
Any help

Be careful; the lender may be trying to increase your principle by rolling closing costs into the mortgage. What lender are you using? I just went through a broker who I felt like did a great job with my Fha streamline on an investment property. I would be glad to share her name. Best advice I can give would be to get.good faith estimates from several lenders and keep an eye out for hidden fees.

Re: Need help deciding which refinance?

darrell — Fri, 16 Nov 2012 17:41:07 GMT

Southern Funding Alliance USA, LLC

Thats the name of the company.

Thanks,

Re: Need help deciding which refinance?

webhopper — Fri, 16 Nov 2012 17:44:25 GMT

darrell wrote:
Southern Funding Alliance USA, LLC

Thats the name of the company.

Thanks,

Without looking at the Good Faith Estimate, there is no way of knowing why the principle is increasing.

Re: Need help deciding which refinance?

darrell — Fri, 16 Nov 2012 23:22:19 GMT

Thanks,

I got it right and went with another lender. The guy was trying to rollover the Escrow amount back into the loan.

Make sure you get 4 estimates from 4 different lender. Thank you kindly.

Re: Need help deciding which refinance?

webhopper — Sat, 17 Nov 2012 03:38:57 GMT

Awesome! Glad to hear that you were able to find suitable options! I love free enterprise :)

Re: Need help deciding which refinance?

MyCreditSucksTheMost — Sun, 18 Nov 2012 16:14:40 GMT

FHA always charges a percentage for refinanaces. While the FHA refinance charges can be rolled into the loan, most all other fees(bank, origination) have to be paid at closing.

A lot of banks will quote you with premium points to offset the amount at closing, you have to just tell them how much money you are willing to bring, for the most part closing costs are similar across the board, just watch the percentage and bank or origination fees.