Out of the loop refinance question!!!

[Anonymous]

Hey, we have a home with a 2 fixed loans a 178k 1st and 82k 2nd. We have 5%-7% equity in the home and I'm trying to figure out what is available these days for a refinance.

The reason for the refinance..... is our rates are 6.5% 1st and 7.85% 2nd both 30 year fixed and I'm trying to see if we can get something lower with the small amount of equity we have left. We pay extra every month, but it sure would be great to get locked in with something lower.

Our credit scores are 660-710 between the 2 of us DTI is under 20% any thoughts?

Our Income is 140K+ verifiable with 7yr+ at the same job. No lates in over 2 years.

Message Edited by jasil on 01-09-2009 07:56 PM

[DallasLoanGuy]

you should be able to get something in the 5s for a 95% + pmi

[DallasLoanGuy]

you need to apply and bring the gfe here for review. it might make sense, maybe not. remember, pmi will go away someday if you stay long enough.

[MattH]

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@DallasLoanGuy wrote:

you need to apply and bring the gfe here for review. it might make sense, maybe not. remember, pmi will go away someday if you stay long enough.

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Indeed.  Also, one can get out from under PMI faster by making extra principal payments to bring the principal down to the LTV where they'll drop PMI.  When my wife and I bought in 2002 we put about 13% down, then over the next few years made extra principal payments and were able to drop PMI in 2006.

[DallasLoanGuy]

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@MattH wrote:

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@DallasLoanGuy wrote:

you need to apply and bring the gfe here for review. it might make sense, maybe not. remember, pmi will go away someday if you stay long enough.

---

Indeed.  Also, one can get out from under PMI faster by making extra principal payments to bring the principal down to the LTV where they'll drop PMI.  When my wife and I bought in 2002 we put about 13% down, then over the next few years made extra principal payments and were able to drop PMI in 2006.

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pmi is not a problem on a long term homeownership strategy.