Financing in Mohegan Lake>Question Details

Andrew Ghigl…, Home Buyer in Hoboken, NJ

Can I refinance a 30 year FHA loan to a 15 year loan and potentially get rid of PMI if I have increased the value of my home to the 22% threshold?

Asked by Andrew Ghiglia, Hoboken, NJ Sat Mar 2, 2013

I purchased a home in February of 2012 for 390,000. The loan is a 30 year fixed FHA loan at 4.25%, I put down 3.5%. My current payment is 3,400 (1875 to principal) the rest is tax and PMI.
I have been paying extra on the principal, and due to Hurricane Sandy I had an insurance claim that I will end up getting a new roof and most of the siding paid for. I was hoping that I would be able to reach the 22% equity threshold soon with upgrades to the home, (upgraded roof/siding, tiled the basement, built a nice fence... and am seriously considering renovating the master bathroom.) With these upgrades and the extra i've been paying, I think I might be close to 22% (i'm not sure if it has to be 22% from original loan amount or current value.)

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Answers

3
Andrew,


If you believe your are close to the 78% equity mark I would definitely advise refinancing. Rates are still very low and will begin a slow but certain ascend over the next few months. Also, you still have some great options available. If we had to remain with FHA we can do a streamline refinance into a 15yr FHA fixed, and if you're at 78% loan-to-value (LTV) you won't have to pay annual mortgage insurance. FHA will be making lots of changes in April and it's imperative that we assign your FHA case number quickly to bypass them (mortgage insurance for the life of the loan regardless of loan-to-value). There is also the option of refinancing into a conventional product. In order to determine your best option we will need to discuss the full picture of your home, credit profile, and a few additional items to ensure you are in the most efficient loan. Please contact me at your earliest convenience so we may being weighing out some options. I may be reached directly via phone or email; whichever is of greatest convenience. Enjoy your weekend.


Kindest regards,


Paul F. Marzolla
Loan Officer
(201) 957-6768
pmarzolla@unvmortgage.com
0 votes Thank Flag Link Sat Mar 2, 2013
As long as you have 20% equity then you can refinance into a conventional loan and eliminate your PMI. You can refinance into a 15 year loan as long as your debt-to-income is low enough. Feel free to contact me (347) 242-1206.
0 votes Thank Flag Link Sat Mar 2, 2013
would it be considered 20% equity if the value of the home increased say 15% due to renovations and I payed had payed in 5%?
Flag Sat Mar 2, 2013
Andrew,

For the best answer to this question, please call Dominick Sutera (Dominick is the guy who trains loan officers) and is my choice mortgage banker.

Dominick Sutera
516-249-4800 (ofc)
516-655-2900 (cell)
dsutera@BankAMC.com

gail@GladstoneGroupRealty.com
0 votes Thank Flag Link Sat Mar 2, 2013
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