Mortgage people - whats the deal with these new mortgage insurance rules and offers??

[jjrock]

Hoping someone in the know has some information to share...

I've been getting inundated with advertisements to refinance my mortgage due to some new rules regarding pmi (mortgage insurance rates). Their claim is that if I refinance my mortgage, I will save money because I will not pay as much into the mortgage insurance. This sounds good since paying PMI sucks.

Another advertisement I have been hearing on the radio is that Quicken Loans is offering a loan where they will pay the "PMI." Sounds gimmicky, I haven't called them yet to find out what the deal is with that.

Anybody have any insight to any of this...

Thanks

 

[Blskypilot]

In for the answer as well. Bought my house for 60, could probably sell quick at 110. Don't feel like I should be forking over on pmi but Wells Fargo sucks.

 

[Wallace's]

PMI typically only gets applied if you owe more than 80% of the appraised value of you home.

If you pay it down enough and refinance, it can go way down or away all together.

Check out Regions HELOAN program. If you have the credit and equity, could save you some decent money. Only downside is you can't escrow for homeowners insurance and property tax.

 

[Wallace's]

PMI typically only gets applied if you owe more than 80% of the appraised value of you home.

If you pay it down enough and refinance, it can go way down or away all together.

Check out Regions HELOAN program. If you have the credit and equity, could save you some decent money. Only downside is you can't escrow for homeowners insurance and property tax.

To add to this. Rates are in the low 3's right now. The HELOAN program also covers all refinance fees so you out of pocket nothing and can take advantage of the low rates. It is not a traditional Mortgage but rather a retail home loan. We are doing a 7 year at 3.25. It will save us $50k in finance charges vs the 30 yr at 5.5 we currently have.

Def worth looking into.

 

[jjrock]

To add to this. Rates are in the low 3's right now. The HELOAN program also covers all refinance fees so you out of pocket nothing and can take advantage of the low rates. It is not a traditional Mortgage but rather a retail home loan. We are doing a 7 year at 3.25. It will save us $50k in finance charges vs the 30 yr at 5.5 we currently have.

Def worth looking into.

That'd be nice but I couldn't afford refinancing our home into a 7 year term...not without blocking ODT for those seven years, lol!

 

[Patronus]

I refinanced my home last year from a 30 year at just under 5% to a 15 year at 3.25%, took out $20k and my payments went up about $50. I don't know about the PMI rules but I DO know that Quicken Loans REALLY took care of me. They kept my closing costs well below $1000, made the process quick and easy and saved me thousands. If you are considering buying or refinancing I'd talk to Quicken without hesitation.

 

[Wallace's]

That'd be nice but I couldn't afford refinancing our home into a 7 year term...not without blocking ODT for those seven years, lol!

You can still choose 10,15, or 30. Not 100% on the 30, but def the 10&15.

 

[jjrock]

I refinanced my home last year from a 30 year at just under 5% to a 15 year at 3.25%, took out $20k and my payments went up about $50. I don't know about the PMI rules but I DO know that Quicken Loans REALLY took care of me. They kept my closing costs well below $1000, made the process quick and easy and saved me thousands. If you are considering buying or refinancing I'd talk to Quicken without hesitation.

Good to know, i refinanced a year ago but taking a significant chunk of money out left me at 4.25% so my concern would be if I could refinance again so soon. The equity is definitely there as I've put money back into the house and our area has been steadily increasing in regards to home prices. Might just give quicken a call to get the lowdown.

 

[FrogHunter]

I've been wondering about this too. Why would my mortgage company hound me to pay them less interest ?

 

[roundhouse]

I've been wondering about this too. Why would my mortgage company hound me to pay them less interest ?

it's usually a different mort company