mortgage refi guys?

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1

So, I bought a house one year ago, for around 130k.

I owe about 124k on it.

Rate is 4.5% Fixed, payment is $1018 with Taxes and Insurance and PMI.

Called around a few places to get Refi quotes.

Two of the lenders said that if I had a 700+ credit score they could refi the loan without PMI.

This alone would save me around 125 per month.

Plus rates are now about 4.05%, and every full point would save maybe 100 dollars, so 50 dollars off the payment based on rate alone.

So the most attractive offer is going to be 4% rate 30 year fixed, no pmi. $870 per month.

$3900 in closing costs that they roll into the loan, I pay 400 out of pocket.

So about 26 months before I start saving a penny on the loan.

Couple questions for the group.

How are the brokers doing loans with no PMI if I owe over 80% Loan to Value.

Does 3900 in closing costs sound high?

Recommend a decent lender to work with that can do a loan in Texas?

I did two easy things to get the loan payment down to 1018, I found a new property insurance broker who put me with a good company and a better policy for $600 dollars less per year.

Also my homestead went into effect and my taxes are a little lower ($2300 per year on a house valued at maybe $140k)

I mean, you can not rent a shitty apartment in Austin for 800 bucks per month, if I can get my note on my house down to the 800’s that would be amazing.

Also. DO NOT CALL LENDING TREE to get rate quotes. Fuck, I called them to have some banks call me with rates. I have received no less than 100 phone calls at all hours of the day, all leaving messages on my phone.

I have had to block about 40 numbers on my phone because they kept calling.

Thanks guys.

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Also, I can not get the PMI off on value of the house alone, it does not appraise high enough yet. Maybe 20 grand short.

2

my understanding that PMI was regulated (and not optional to the banks) and there was no way to get rid of it until you hit 20%. the exception being VA loans.

I don’t think it’s worth paying $4k to go from 4.5 to 4.0 personally I would wait until you can do better or not bother.

statistics says you won’t own your house in 5 years so the payoff is too small and too far out IMHO.

take that 4k and keep saving until you get enough to kill off PMI and just pay down to 80% is my advice. also watch for lower rates and/or offers that pay the closing costs and don’t just roll them in.

3

See this thread: http://www.nyspeed.com/showthread.php?282311-School-me-on-mortgages

See post 31 regarding PMI rules.