New Contributor
darrell
Posts: 55
Registered: ‎12-09-2007
Need help deciding which refinance?

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.