Matt M asked in Business & FinanceInsurance · 1 decade ago

I owe $25,000 FHA mortg. Insur. prem. high flood AE zoned. Options to payoff mortg. to avoid forced Insuranc?

I am trying to find options to payoff my mortgage so I don't have to

1. have an escrow account. 2. be forced to pay insurances because the Bank still owns the house. I called one bank and they offer higher Interest than what I am paying now? I need options, Please.

Thank you

3 Answers

Relevance
  • 1 decade ago
    Best Answer

    What's the house worth?

    See, getting a mortage with that small amount is going to be expensive - usually you get a better rate at $75,000. If the house is worth at least $100,000, refi to $80,000, then write them a check for $65,000 (gets you the lower rate).

    But that's probably not going to get you out of the escrow or insurance - the only way around insurance, is to pay the house off. ALL the way off. Escrow is negotiable, as long as you have at least 20% equity in the house.

  • Anonymous
    1 decade ago

    The amount of your mortgage insurance is $10/month.

    It would be foolish to give up $25,000 solely to eliminate having an escrow account. Depending on the interest rate, the opportunity cost of paying off your mortgage is too great. I would just invest the money instead.

    You definitely want to have your home insured. If you're worried about saving $10/month, imagine what it'll cost you to rebuild a home in the event of a fire.

  • ?
    Lv 7
    1 decade ago

    You have none. also your home owners insurance carrier will also demand you carry flood insurance.

Still have questions? Get your answers by asking now.