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Should I....refinance???

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Valued Member

Should I....refinance???

With the help of this forum, I was able to purchase a house in May of 2011. I have an FHA loan @ 4.75%. In the last two years home values have increased in my area. We owe 158,000 on our loan and our house may be worth a little over 200,000. I am paying PMI on the loan. I was looking into refinancing to a conventional loan so I don't have to continue to pay PMI. My loan is with Wells Fargo and I called them about a refinance. The mortgage consultant sent me some numbers. Listed below is some of the fees he sent

Bank fee: 1190
Appraisal fee: 495
Title fee: 1,000
This is at a rate of 4.5% for a 30 year conventional.

So I have two questions. Is it a good idea to refinance and do these numbers look reasonable?
Experian-770 Transunion-780 Equifax-780
Message 1 of 4
3 REPLIES
Super Contributor

Re: Should I....refinance???

short term = no

long term = yes

 

a good lender can give you a break even point in 'number of months' to recoup fees. looks like a 48 month breakeven before tax credits. maybe look at a 25yr loan? make it sweeter?

 

i like the deal on the surface.... but there are better lenders to deal with that will close on time and have better service.

 

 

Retired Lender
Message 2 of 4
Super Contributor

Re: Should I....refinance???

to add.....

 

appraisal will affect analysis. if above 80% ltv.... you still have pmi for a short time. but it will be same or less than your current pmi

 

Retired Lender
Message 3 of 4
Valued Member

Re: Should I....refinance???

If your home does appraise for $200k, then a conventional loan will definitly benefit you because you would not have PMI. You could even get a lower interest rate on today's market. The fees seem a bit high, I recommend shopping around for the best deal. If you have more questions contact me by email through my profile.

Message 4 of 4