Author Topic: Refinance Research  (Read 894 times)

LearningMustachian72

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Refinance Research
« on: October 25, 2019, 10:10:48 AM »
Hey!

I bought 2 years ago with an FHA loan and have now achieved 20% equity and want to refinance to get out of PMI.  My current rate is 3.5% but it comes out to more like 4.5 with PMI.

Any tips for researching the best refinance rate?

Thank you!

kenmoremmm

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Re: Refinance Research
« Reply #1 on: October 25, 2019, 04:33:51 PM »
Quote
You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80 percent of the home's original appraised value. When the balance drops to 78 percent, the mortgage servicer is required to drop the PMI. ... Simply multiply the purchase price of your home by 80 percent.

source: google

Another Reader

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Re: Refinance Research
« Reply #2 on: October 25, 2019, 06:14:13 PM »
Quote
You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80 percent of the home's original appraised value. When the balance drops to 78 percent, the mortgage servicer is required to drop the PMI. ... Simply multiply the purchase price of your home by 80 percent.

source: google

He does not have PMI.  He has FHA MI and because he bought two years ago, the MI cannot be canceled.

OP should talk to a good mortgage broker (get referrals) and some banks.  A few credit unions are good at mortgages, many are not.  Stay away from Lending Tree and similar lead aggregators.  You will get a lot of calls from uncompetitive small brokers.  Quicken and it's subsidiary, Rocket Mortgage, are high priced and sleazy to deal with. 

A good place to start is online at aimloan.com.  That should give you a rough idea of rates and terms, as long as you use accurate information on the form.

popcornflying

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Re: Refinance Research
« Reply #3 on: October 26, 2019, 03:38:53 PM »
I like Zillow rates, https://www.zillow.com/mortgage-rates/

Just closed a refi with Fast Forward Home Loans found there, refinanced to 3.375% 30 year fixed with closing credit and appraisal waived, but rates were lower two months ago. Aimloan is in there too.

I've had luck with the aggregators, just have to compare quotes, and be firm with the banks that aren't competitive.