Refinance?

[eddymvp]

The house market has gone up since 2009 in Massachusetts.  I bought my house in May, 2009 for 220K and I think its worth now about 270-300K.  I did an FHA loan at that time and i'm paying PMI. Is it worth it to do a refinance? and what are my refinance options?

[Mike_B03]

What rate do you have?

[eddymvp]

Let me update my case, I contacted the original mortgage broker that helped me get this loan.

My Current status:

Purchase Date: May 28, 2009.

Current rate at 5.00% fixed 30 years (27 to go)  (Wells Fargo)

Purchase Price: $220k

Current Principle:  $200k

Current pymt with taxes etc.:  1,600

My broker gave me this options:

Assuming the house is worth at least $250,000, you could refinance into a conventional mortgage at 3.75% with no Mortgage Insurance and no closing costs.

The payment on $200,000 would be $926/month plus taxes and insurance.

If you want to take money out, you would need to go to an FHA loan again. The maximum loan amount is 85% of the value of the house and you would have to pay mortgage insurance but no closing costs.

[Mike_B03]

Seems like a no brainer to me. Only downside is that you reset your loan to 30 years. If you stick with what you have, you'll be paying an addiitonal $518,400 at the end of 27 years. If you refi, based on the payment you posted, you'll pay $333,360 in 30 years. 

Only other suggestion would be to maybe shop around and see if you can get a better rate than the 3.75% but I would definitely do it.

[eddymvp]

Thanks Mike,

I was also thinking of taking some cash but that would increase my monthly payment. I think  for a new 30 years I will be saving a few hundreds a month.

[eddymvp]

This is what I started. I believe my house value is from 270-300 and  initiated the fha loan refinance with cash back.   I can only refinance up to 85% of the value. Assumming the apprasial comes within those numbers.

Loan Amount: 229,500.00 /30Years

Interest Rate: 3.250%

Your initial monthly amount owed for principal, interest,
and any mortgage insurance is: 1,245.16

Total Est. Monthly Payment $ 1,587.99  with insurance and taxes.

I currently owe 200,000.00 and my initial loan was 220,000. and I've been paying 1600.00 monthly.

If everything goes well, at closing I will have in cash the different between 229,000 - 200,000 = 29,000.

[dabrian]

Did they give you the numbers for a 15 and 20 year mortgage?

[eddymvp]

Nope, I didn't asked for those, my credit scores were  EQ: 712, Trans 709, EX: 705. I believe to get a good rate it needs to be at least 750 if you are doing conventional. FHA  with money back was my best option.