Question
Should I refinance my 80/20 mortgage to a 30yr Fixed FHA?
I've had my house for about four years with an 80/20 mortgage. 80 is 30yr Fixed at 6.5%, and the 20 is at 15yr fixed balloon at 7.25%. I now have someone who will refinance me into an FHA 30yr Fixed at 5.5%. The monthly payment is only $60 cheaper and I have to pay $2000 in closing cost and another $2000 upfront PMI. Another factor in the equation is my house is in the Metro Detroit Area so the price has dropped since I bought. I bought at 172000 and it's probably 155000 now. She has got me an appraisal much higher that will enable me to refinance with the FHA, but I'm wondering if this is worth refinancing. It seems to me I won't break even for at least two more years on the closing costs alone. And I'm also hoping to sell the house within the next five years when conditions turn. Could someone tell me if I should or should not do this or some aspect I might be missing here? Thanks in advance!
5 months ago - 4 answers
Best Answer
Chosen by Asker
Upfront fee is $4000 and save only $60 per month on the payment. That's mean it takes almost 67 months to break even which is equal to 5.6 years. You're planning to sell in 5 years then what's the reason to refinance? Plus sometimes there's other out of pocket cost like the appraisal fee and points. They might not tell you until the time of closing. That's what I call a surprise fee.
Source(s)
I'm a LL in CA
by MM C
5 months ago
Asker's Rating: 
Other Answers
I work for a loan modification company. I can get your loans modified cheaper than the source you have and save you 30-35% on your mortgage payment with a fixed 30 year rate between 4to 5%. We also have a 100% money back guarantee. If you need to talk to us directly please email me so i can give you a phone number.
by Roby- 5 months ago
No, other then not making $$ sense, there is the little issue with the fraudulent appraisal. FHA will order their own and deny you after you have paid the fees to this shark you have come across. You are being conned.
by Landlord- 5 months ago
you will find what you are looking for here, i did: refinancemortgage ...
by Fsa- 5 months ago