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.
- AnonymousLv 71 decade agoFavorite 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.
- Anonymous1 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 71 decade ago
You have none. also your home owners insurance carrier will also demand you carry flood insurance.