Private Mortgage Insurance Questions

by Shelly
(Michigan USA)

Regarding Private Mortgage Insurance Questions: I'm looking to refinance and was wondering which option might prove more beneficial FHA or Obama's Home Affordable. FHA has the MIP and HA has the PMI. FHA has a 95% LTV and HA has an 125% LTV.

Are there other programs that I could use to refinance and avoid PMI or MIP? I have a good credit score and never have missed any payments. My house value is $144,000---down from $172,000 from 7 years ago. I'm looking to save on the monthly payments and/or lower my current PMI.

Kate Answers: Private Mortgage Insurance Questions

Hi Shelly, I do not know how much you originally borrowed when you purchased your home 7 years ago so I can only talk in generalities.

Depending on your mortgage balance, your refinancing options will probably be driven by loan to value, how much you owe in relation to your appraised value.

Whatever you end up qualifying for and no matter how appealing mortgage programs seem, take the responsibility upon yourself to investigate. Compare mortgage closing costs. Insist on a good faith estimate in writing and ask for mortgage rate lock terms upfront.

In fact just this morning I answered another Reader's letter who was trying to compare VA loans to HARP. You can read Mike's letter VA Mortgage Loans here.

For additional PMI help, here are contributions from other Readers with common scenarios regarding private mortgage insurance.

I have provided links to private mortgage insurance facts at the bottom of this page for your convenience. By all means, please let me know if you have more questions.

Take a moment to bookmark Private Mortgage Insurance Questions to your favorites and visit often for more PMI and refinance tips.

Best Wishes,
Ask Kate how to get the best mortgage rates
Ask Kate

Finally! PMI Answers You Need

What Is PMI - Could private mortgage insurance be your solution to equity and down payment problems? 2013 Update: Deductible mortgage insurance premiums.

Updates on HARP 2.0 Refinance with Borrower and Lender Paid Mortgage Insurance - PMI and LPMI.

Could you be entitled to a mortgage insurance refund from FHA?

How do lenders calculate PMI? Credit history, amount of down payment or equity, occupancy status, and loan type factors.

How Do I Cancel PMI Will refinancing or a new appraisal be required?

What to do if PMI Decision Making is getting in the way of refinancing or buying a house.

My name is Kate and I will be your guide - PMI Questions and Answers

Return from Private Mortgage Insurance Questions to Get Your Best Mortgage Rate

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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