Potential refi on our home
I am looking at a potential refi on our home in Arizona. We bought it with FHA down payment assistance last Feb 2021. We have to pay a prorated portion if we refinance or sell in the first 3 years. Current rate 3.5%, prorated grant 9k remaining. PMI is $250 a month, while principal and interest is $1.650. Value has gone up to $470k. We are thinking about a refi even if there is a 9k addition to the loan because rates are going up and we want to remove PMI where we can. Is this a good idea? We plan to stay in the home for the long term. by sherzodr604 from Central, Arizona. Feb 4th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Its always a good idea to refinance if it makes sense. Simple math will give you the answer. Adding $9000 to the loan amount would add about $45 a month to the payment. Current conventional rates are about what you have now, so no gain there, but if you are at 80% loan-to-value of better, and can drop $250 a month PMI, but add $45 a month from the $9k assistance loan, that is clearly a savings of $200 a month. I lend in MN Wi IA SD ND. Find me at JoeMetzler.com, Cambria Mortgage, NMLS 274132
Ask our community a question.
Get an answer
Related Questions
