Private Mortgage Insurance Questions
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
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.
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