Mortgage Refinance - Mortgage Insurance Premium?
I am working on a mortgage refinance. I am going from a 7.5% to a 5.25% rate. The issue is that because of the value of my home and what I owe on it, I have to pay $6,000 Mortgage Premium Insurance. Is this legit and/or am I paying too much? This doesn't seem like a good deal.
- Anonymous10 years agoFavorite Answer
You have not given enough information but I can probably reverse engineer it for you.
Your loan amount looks to be around $267,000 and it is an FHA loan you were quoted; if so, the $6,000 as the UFMIP (Up front mortgage insurance premium) is correct.
You are asking 2 different questions. Is it legit? Yes, if the numbers match what I just said.
Is it a good deal, I would say probably not because 5.25% is too high based on current rates for that loan amount and an FHA loan may or may not be your best option.
Get another quote.Source(s): CA Mortgage Loan Officer
- Arbor MortgageLv 410 years ago
On every FHA loan there is a 2.25% mortgage insurance premium, so yes, it is legit. As for the rest of your loan, it's irresponsible for anyone to say if it's a good deal or not without knowing the whole story. If you're paying additional fees on top of the 5.25%, then no, it's not a good deal. If the 5.25% is a no fee deal, than it could be a good deal. No one knows without seeing your Good Faith Estimate.
If you're really concerned about the offer, than it would be a good idea to shop a couple more lenders and compare. Rates are down a little bit right now, so if it's been a few days since you got that quote from your current lender, approach them about lowering the rate.Source(s): Mortgage Lender
- linkus86Lv 710 years ago
The easiest way to be sure if anything is legit is to shop your refinance with a different mortgage broker and see what fees and rates they will charge you. I suggest talking to 2 more mortgage brokers and crunch the numbers.Source(s): Realtor
- gussieLv 43 years ago
The refinancing technique would want first of all a splash assessment procuring. like all product, the charges and words will variety between lenders, so it relatively is a robust theory to have some thoughts from which to choose. this would additionally help benefit leverage with the present loan holder interior the quite probable adventure that they're going to attempt to maintain your organization with the help of offering aggressive expenditures. while getting a stable faith estimate (GFE) from a lender, that is sensible to ask them to guarantee it, considering the fact that in fact a GFE is entirely an estimate of the non-public loan's fees, and it supplies the lender an probability to function or amend expenditures. it relatively is a large convenience understanding that the figures you're quoted on an estimate would be a similar ones you would be provided on the non-public loan's final. After choosing a lender, an utility is submitted and a house appraisal is arranged. An appraisal of the fee of the living house helps make certain the non-public loan-to-fee ratio (the fee of the non-public loan volume expressed as a share of the appraised fee of the valuables) which in turn determines how lots money the lender is waiting to lend. the better the LTV ratio the extra probability there is to the lender, so the expenditures and/or the pastime cost will probable be greater. it relatively is risky too, In a booming housing industry while living house fees are skyrocketing, there is in many circumstances a hurry to refinance considering the fact that increasing values translate into extra fairness. while the bubble bursts, even even with the undeniable fact that, and living house values drop heavily, property proprietors who've taken out too lots fairness from their residences can locate themselves the opposite direction up on their mortgages. it relatively is, they are in a position to be left with a loan stability it relatively is greater than the truthfully fee of their living house, making it next to impossible to sell their living house devoid of relatively owing money after the sale.
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- Anonymous3 years ago
Some more details needed
- 4 years ago
Great insightful answers, thank you