Any Great Lenders Out There?

Discussion
1

Hello Everyone,

Looking for any advice or referral on good lenders. We are looking to refinance our home. We’d like to possibly lower the payment and get rid of PMI. Wanting to gather more information on this process and the requirements.

Thank you!

2

Yeah buddy, don’t touch your mortgage.

3

Vero said:
Yeah buddy, don’t touch your mortgage.

Why not?

4

They don’t know your rate, 5.625% is too low to refinance right now. I would wait and hope it dips early next year to around 5%. If Trump takes over the Fed, we might get good rates before it causes inflation, so at least there’s that.

5

What state are you in?

6

Rowan said:
What state are you in?

I’m in California.

7

What is your current rate and loan amount?

8

Vero said:
What is your current rate and loan amount?

$533,214.89 mortgage balance
Rate is 5.625%

9

Asa said:

Vero said:
What is your current rate and loan amount?

$533,214.89 mortgage balance
Rate is 5.625%

Rates aren’t at a point where refinancing makes financial sense with 5.625%.

10

You shouldn’t need to refinance to remove PMI if you have 20% equity in the property.

11

Roux said:
You shouldn’t need to refinance to remove PMI if you have 20% equity in the property.

That’s not necessarily correct. If it’s a conventional loan, it typically takes at least 22% equity, on-time payments for the last 2 years, and sometimes improvements to the property. FHA loans won’t allow PMI to be removed just by having 22% equity. It either falls off after 10 years (if you had a 10% down payment) or it won’t ever fall off.

12

@Miller
We have an FHA loan, and they confirmed that PMI won’t fall off with 20% equity. We have to wait 10 years, so we’re looking at refinancing.

13

Asa said:
@Miller
We have an FHA loan, and they confirmed that PMI won’t fall off with 20% equity. We have to wait 10 years, so we’re looking at refinancing.

Ah, with an FHA loan, it’s MIP (Mortgage Insurance Premium), not PMI. You’ll need to refinance or wait 10 years.

14

Roux said:
You shouldn’t need to refinance to remove PMI if you have 20% equity in the property.

Could be FHA.

15

Hart said:

Roux said:
You shouldn’t need to refinance to remove PMI if you have 20% equity in the property.

Could be FHA.

I’ve been getting forms saying I can reduce my mortgage by almost $1k. How is this possible even with higher mortgage rates?

16

@Asa
Who’s sending these forms? Your current loan servicer?

17

Marin said:
@Asa
Who’s sending these forms? Your current loan servicer?

Different lenders.

18

You have a decent rate. If you can, put more toward the principal to get past 20% equity, then you can request PMI removal. Typically, just send a letter for that.

19

Emerson said:
You have a decent rate. If you can, put more toward the principal to get past 20% equity, then you can request PMI removal. Typically, just send a letter for that.

We submitted a request, but since we have an FHA loan, they said we need 10 years.

20

@Asa
How much is your FHA PMI per month?