Not sure if refinancing makes sense? Ask here.

[Punisher]

If you're wondering if it makes sense to refinance your home loan or not, but don't want the hassle of dealing with a salesperson, you came to the right place. We'll give you the straight scoop on what your options are. You decide if it makes sense or not.

What are you looking to do?

PM or reply below.

[ArmoredRunner]

Do it!!! totally worth it I work on the escrow side of things as a notary and you'll save serious money!

[Punisher]

ArmoredRunner - I am a loan officer. And I wasn't asking if it makes sense for me to refinance or not. This thread was intended for Calguns members to ask us if it makes sense or not for them to refinance based on their current situation.

A lot of factors affect what rate and loan options are available to each applicant. Sometimes it doesn't make sense, sometimes it does. I'm here to make it easier for Calguns members to figure out.

[Gilcontr]

I'm wondering whether it makes sense for me to refinance...

I have a house I'm renting out (my first house). I bought it around 2010 using an FHA loan at 4.5%. Currently, I am still paying mip and am considering refinancing in order to eliminate it and get in at a lower rate. Based on what is happening with the market, I feel that the house may appraise slightly above what I got it for (bought it a little on the high side). Reason I'm on the fence about refinancing is because I am thinking of selling it at some point. Just not sure when.

Thanks in advance!

[Punisher]

Gilcontr - If you've got some equity, it may be possible to roll you off the FHA and onto a conventional loan and eliminate the MIP. If it were owner occupied, we'd only need 5% equity; which many homeowner's have. I'll PM you my email address and we can continue the conversation there. Thank you for asking!

[Montu]

really you can get rid of MIP with only 5 percent equity?

I may not be ready to refi right now but I've been keeping an eye on property values in my neighborhood because I would like to get rid of my pmi paymens and possibly do some home improvements at some point. (I only purchased the home a year ago)

[Punisher]

@Montu - Yes, with 5% equity (and a loan amount under $417k), you can get a conventional loan, eliminating the montly mortgage insurance payments. Instead of you paying the mortgage insurance every month, we have the bank pay for a one time insurance premium; it's called LPMI or Lender Paid Mortgage Insurance. And this can be done as a no cost loan as well, where the lender pays for all the costs, the new loan balance is equal to your old loan balance. Your credit score and the amount of equity, play a strong influence on what rate you'll get. Sometimes it makes sense, and sometimes you have to wait for the market to come back down. Thanks for the comment!

[Montu]

Thanks for the information,

based on comparable home sales in my area I estimate I have anywhere from 12-18 percent equity..the plan was to refi into conventional once I had ~25 percent. Probably < 5 years into the loan..does that make sense?

Are you limited to a certain area? (I'm in norcal)

thanks again for the info if you can work with me in the future I'll make sure to keep your contact info.