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The Golfmk OFF-TOPIC chat (Part 11)

merkeyterkey

merkeyterkey

The Real FLATTIRE
Location
Pawnee, IN
Yep

 
eurocars

eurocars

5/17/15 - Never forget
Location
Indianapolis
Car(s)
2006 GTI
Since theres nothing to talk about...

Thinking about refinancing my mortgage to get rid of the PMI. I put down 3.5% on 123k when I first bought my house (FHA loan). Had a realtor come and do a value assessment of the house and she thought it was worth ~150k due to improvements i've made. With the equity bump, I think i can refinance with "20%" down and lower my payment by ~200/mo by ditching the PMI. I realize i'd have to get more info from the lender and get an actual appraisal. Good idea, bad idea, anyone have experience with something similar?
 
g60_corrado_91

g60_corrado_91

Go Kart Champion
Location
IL
Car(s)
2006 GTI 6MT Pkg 1
You're throwing money with PMI, so I would say do it. But get the other details first before signing anything.
 
avenali312

avenali312

Autocross Champion
Location
Mableton, GA
Car(s)
2015 GTI
No idea what PMI is, but increased equity and lower monthly payments sound good to me as long as it pays off in the long run and you don't end up paying more interest somehow.
 
g60_corrado_91

g60_corrado_91

Go Kart Champion
Location
IL
Car(s)
2006 GTI 6MT Pkg 1
It's mortgage insurance for those who are a risk, or in Eric's case, just a new home buyer at the time with not much credit?
 
iliftthings

iliftthings

Ready to race!
Location
North Korea
eurocars said:
Since theres nothing to talk about...

Thinking about refinancing my mortgage to get rid of the PMI. I put down 3.5% on 123k when I first bought my house (FHA loan). Had a realtor come and do a value assessment of the house and she thought it was worth ~150k due to improvements i've made. With the equity bump, I think i can refinance with "20%" down and lower my payment by ~200/mo by ditching the PMI. I realize i'd have to get more info from the lender and get an actual appraisal. Good idea, bad idea, anyone have experience with something similar?
Click to expand...

I think you'd have to breakdown what you would pay over the life of the mortgage with PMI vs what you would pay refinancing and putting "20%" down without PMI. You'd need a rough estimate on what your rate could be for refinancing.

PMI is what like .5-1% of the total loan? If you get a higher rate on refinancing then over time the total cost could be pretty much similar.

g60_corrado_91 said:
It's mortgage insurance for those who are a risk, or in Eric's case, just a new home buyer at the time with not much credit?
Click to expand...

No Matthew. Typically under 20% down requires PMI.

Eric Take a look at this
Hard To Cancel – As mentioned above, usually when a homeowner's equity tops 20%, he or she no longer has to pay PMI. However, eliminating the monthly burden isn't as easy as just not sending in the payment. Many lenders require the homeowner to draft a letter requesting that the PMI be canceled, as well as receive a formal appraisal of the home prior to its cancelation. All in all, this could take several months depending upon the lender.
Click to expand...

http://www.investopedia.com/articles/pf/07/avoid_pmi.asp

Another link - http://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx


Edit: Also fuck you and give me back my Sweet Baby Rays.
 
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