Good Rate?

[CreditCuriosity]

Question

Bought my house about 2 years ago for 304k I believe.  Owe 289k on it.. Zillow say worth about 350k, but take that with a grain of salt and put it down to 325k.  Called up a company about refinancing my FHA loan as best rate at time was 4.25 which I got.  They are offering 3.3375 rate with 0 points etc..  Total closing at around 2k..  Is this about as good as it gets right atm for a conventional loan with excellent credit?   I still will have PMI, but also have access to NFCU and last I checked like a week ago it was going to be about 7.5k to table to close and that included 1 point buyng down to 3.75, but i don't have to pay PMI with them as none of there loans include it...  Assuming I keep my house for say 2-3 more years whch would be the better option it appears loan 1...  They estimated payment at 1,278 but didnt include PMI or any of the other fun stuff n that #.. Lender is Sebonic which is well known to have very low rates and no points... Thought are appreciated!

[randomguy1]

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@CreditCuriosity wrote:

Question

Bought my house about 2 years ago for 304k I believe.  Owe 289k on it.. Zillow say worth about 350k, but take that with a grain of salt and put it down to 325k.  Called up a company about refinancing my FHA loan as best rate at time was 4.25 which I got.  They are offering 3.3375 rate with 0 points etc..  Total closing at around 2k..  Is this about as good as it gets right atm for a conventional loan with excellent credit?   I still will have PMI, but also have access to NFCU and last I checked like a week ago it was going to be about 7.5k to table to close and that included 1 point buyng down to 3.75, but i don't have to pay PMI with them as none of there loans include it...  Assuming I keep my house for say 2-3 more years whch would be the better option it appears loan 1...  They estimated payment at 1,278 but didnt include PMI or any of the other fun stuff n that #.. Lender is Sebonic which is well known to have very low rates and no points... Thought are appreciated!

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I've seen as low as 3.25 as I'm shopping right now. My former co-workers have stated CashCall does really good refis with only a $995 fee. PenFed and Alliant are offering around 3.25 on 30 year conventionals when I checked earlier this week.

[Anonymous]

If you're just looking to refi to lower your rate and payment and not remove pmi yet. I would look into a fha streamline refi, as you get the mip you had tacked onto your loan refunded to you. Which can equal 1000s depending on how long ago you closed.

[CreditCuriosity]

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@Anonymous wrote:

If you're just looking to refi to lower your rate and payment and not remove pmi yet. I would look into a fha streamline refi, as you get the mip you had tacked onto your loan refunded to you. Which can equal 1000s depending on how long ago you closed.

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No thanks as according this i read on it...heck no not when i have scores around 800...

One potential downside to an FHA streamline refinance: You’ll pay a fresh upfront mortgage-insurance premium and continue shelling out monthly premium payments. The upfront premium is 1.75%

[VALoanMaster]

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@CreditCuriosity wrote:

Question

Bought my house about 2 years ago for 304k I believe.  Owe 289k on it.. Zillow say worth about 350k, but take that with a grain of salt and put it down to 325k.  Called up a company about refinancing my FHA loan as best rate at time was 4.25 which I got.  They are offering 3.3375 rate with 0 points etc..  Total closing at around 2k..  Is this about as good as it gets right atm for a conventional loan with excellent credit?   I still will have PMI, but also have access to NFCU and last I checked like a week ago it was going to be about 7.5k to table to close and that included 1 point buyng down to 3.75, but i don't have to pay PMI with them as none of there loans include it...  Assuming I keep my house for say 2-3 more years whch would be the better option it appears loan 1...  They estimated payment at 1,278 but didnt include PMI or any of the other fun stuff n that #.. Lender is Sebonic which is well known to have very low rates and no points... Thought are appreciated!

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I would take the 3.375% with zero points. Here's why. Your PMI can still be removed once you have enough equity (assuming that you don't have enough right now) for the cost of an appraisal. If you go with the Navy Fed option of 3.75%, the only way to lower your payment it to refinance again. Does that make sense?

If you have good scores & your loan to value is 90% or less, your PMI should be pretty cheap, like $49 per month cheap.

Good luck.

[Revelate]

Sebonic is at 3.5% $0 origination fee for reference for gold plated refi at 0 points as of 15 minutes ago.

<50% LTV condo.  Additional bonus waiving the appraisal too since there really isn't any point to accurately determining the LTV... it would have to come in something like 125K under to make a difference in the loan rate and that's just not going to happen.

ETA: $1612 in total closing costs.  Figure add an additional $500-600 or so for an appraisal if it were required.

[NC_Mtg_Loaner]

What are the APRs?

If you currently have FHA and you have an 800 credit score, you might actually be able to profit from an FHA Streamline where your lender provides you a low rate and enough lender credit in order to pay your closing costs AND pre-paid escrows for your new loan.   

Of course you can't get more then $500 back, but if you close in the middle of the month you'll be skipping two payments (principle only really) and you'll get your current loans' escrow refund in enough time to apply it as "extra principle" on your first new loan's payment.

But again, always compare APRs of your loans--this is how you tell which is most cost effective.

[CreditCuriosity]

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@NC_Mtg_Loaner wrote:

What are the APRs?

If you currently have FHA and you have an 800 credit score, you might actually be able to profit from an FHA Streamline where your lender provides you a low rate and enough lender credit in order to pay your closing costs AND pre-paid escrows for your new loan.   

Of course you can't get more then $500 back, but if you close in the middle of the month you'll be skipping two payments (principle only really) and you'll get your current loans' escrow refund in enough time to apply it as "extra principle" on your first new loan's payment.

But again, always compare APRs of your loans--this is how you tell which is most cost effective.

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I guess the other major problem I have with an FHA loan or FHA streamline is stuck with PMI for life of loan... Big draw back for me with very low rates now and > 10% equity in house depending on bonuses and other factors I can have my PMI washed out in a few years if I wanted to get agressive with throwing extra money around.   PMI is just throwing away money to me and the less time I do it, the better or least how I see it with high scores, higher income, etc.  I just did it at the time due to low 3.5% down and wasnt looking at buying at the time, but it just kinda landed on my lap so reason I did FHA now I am basically regretting it.  FHA seems great for people with either lower credit scores or ones that dont want to put the typical 5% conventional down being 3.5% down, but with all that said if i remember right gotta pay the 1.75% PMI upfront(although could be wrong) all i know is my closing costs were somewhere around 13k when I bought it with lender throwing some $ at it as well..