I need to refinance my house. My mortgage is currently $2163.09/mo. Of that, 30% goes to principal, 39% goes to interest, and 32% goes to escrow. My monthly payment keeps creeping up due to escrow. I need to do something different. My interest rate is 5% and my unpaid principal is about $199K. Is now a good time to refinance? I was discharged from CH13 in May 2017. My mortgage was not reaffirmed so it's reporting as closed on my CR. My current scores are 680 (EXP), 632 (TU), and 695 (EQ). Any advice is welcomed!
You will be looking at an FHA loan and rates on these are low.
IF you already have an FHA loan then you should conduct a streamline FHA REfi immediately. It's a low cost way to reduce your P&I payment that only costs you the UFMIP of 1.75% unless you take a high enough rate on your new loan that pays all your closing costs including the UFMIP but that's not quite realistic, imho.
Keep in mind if you have a conventional loan already, your savings might be limited because your going to be re-adding Mortgage Insurance to the mix, so depending upon when you originated that loan you have at 5% will factor in determining the magnitude of your savings. IF you are already 5-10 years into this loan, you might want to consider a 15 or 20 year FHA loan if anything at all because you are already into your amortization schedule deep enough to where it may not matter as much.
Escrow accounts will always fluctuate due to the nature of taxes and insurance, no matter what type of loan you obtain or retain.
You seem to be a perfect candidate for a refinance and to take advantage of the recent drop in rates. You have many term options, we lenders reconginize that many people don't want to go back and start over with a 30 year loan. I would recomend (if you can afford it) to refi and cut the term of your loan. Timing is everything, there is a good chance the FED may cut rates again next month. I would seriously consider being all dressed up and ready to dance.
Best wishes to you!