Refi without 80% LTV?!?!

[nada9188]

Hi All

Originally closed on my house three years ago for 170,000 FHA @3.25%.

Current value estimated at 185,000, owe 156,000 meaning 84%. Would take 8k to get me to 80%.

I really would like to refinance to get rid of the PMI but do not have 8k laying around. Do I have any options here? 

Looking to shorten the term to 15 or 20 yrs.

2nd point: If bank statements are required for a refi, my average balances are between 2-5k at any given time-will this be a problem?

Credit scores 800+, income 55K yr.

Thank you!

[Anonymous]

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@nada9188 wrote:

Hi All

@Originally closed on my house three years ago for 170,000 FHA @3.25%.

Current value estimated at 185,000, owe 156,000 meaning 84%. Would take 8k to get me to 80%.

I really would like to refinance to get rid of the PMI but do not have 8k laying around. Do I have any options here? 

Looking to shorten the term to 15 or 20 yrs.

2nd point: If bank statements are required for a refi, my average balances are between 2-5k at any given time-will this be a problem?

Credit scores 800+, income 55K yr.

Thank you!

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Truly depends on what the house appraises for. At that LTV and credit score, your PMI will only be about $20 per month.

[StartingOver10]

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@nada9188 wrote:

Hi All

@Originally closed on my house three years ago for 170,000 FHA @3.25%.

Current value estimated at 185,000, owe 156,000 meaning 84%. Would take 8k to get me to 80%.

I really would like to refinance to get rid of the PMI but do not have 8k laying around. Do I have any options here? 

Looking to shorten the term to 15 or 20 yrs.

2nd point: If bank statements are required for a refi, my average balances are between 2-5k at any given time-will this be a problem?

Credit scores 800+, income 55K yr.

Thank you!

---

Depends on where you got the current estimated value.  The refi lender will use a new appraisal. You might want to get a Realtor (experienced and knowledgeable) to give you a CMA using good comps for an estimate before you apply.  Don't just use the automated valuation systems that proliferate the internet eg Zillow type - those automated valuations are way off in either direction - either high or low. I see it all the time. 

The bank statements shouldn't be an issue. You're on time with your current mortgage and other obligations, right? No problem then.

[BrianB_The_Loan_Professor]

3.25 rate is pretty awesome = at the time you did your loan PMI May not have been for the life of the loan - 

June 3, 2013 all fha loans with less than 10% down changed and the PMI is for the life of the loan - if you put 10% down you could get out of the pmi after 11 years

However prior to that it was once you reached 78% or had been in the loan for 5 years

If you were prior to that time consider doing what you can to pay down to 78% and stay at 3.25%

In comparison - if you were to refi into a conventional now your rate would be higher  than it currently is and you would still have a small PMI payment

If you came in with enough to buy down to 80% it would only be a little more to get to the 78% and keep that rate WITHOUT the cost of a refi

Just another angle to consider

Hope it helps

BrianB