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Refinance- where to begin?
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hmm8191
My loves
Member since 3/06 2908 total posts
Name:
Heather
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Refinance- where to begin?
I did a search on this topic and didn't come up with any recent posts to I hope I'm not asking a question that's been answered recently.
My husband and I purchased our home in June of 2010 with an FHA mortage. Our current rate is 5%. I'm looking to save money anyway we can so I can potentially reduce or stop working in the city to spend more time with our 2 little ones. I feel that we could accomplish that by refinancing but don't know where to start. Our current mortgage is with Wells Fargo and we have a long relationship with Citibank. Do I just go directly to them? We used a broker for our initial mortgage but he was a total clown and I wouldn't even consider going back to him. Also, is there a change we will be able to switch from an FHA (with insurance) to a regular mortgage at this point. We both have exceptional credit and good jobs.
TIA for all your help. It means the world to me/us!
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Posted 1/17/13 9:24 AM  |
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Lori11514
LIF Infant
Member since 11/10 229 total posts
Name:
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Refinance- where to begin?
I would contact Wells Fargo directly first even if you use a different broker. For FHA loans they have something called a Streamline Refinance. It doesn't require a new appraisal (which saves money) but I'm not sure if you can switch banks and do the Streamline.
A few months ago, we actually went all the way to the end of the Streamline Refi with our loan that is at 5.25% and backed out at the last minute. Although our overall payment would be lower, the PMI would be higher. PMI is currently tax deductible but is on shakier ground that the mortgage interest deduction. In addition, the length of time would reset to 30 years (losing the years we have already paid) and there would be fees associated with it.
Our plan has always been to refi into a conventional ASAP and the fed has indicated that interest rates will stay low until at least 2014. Rather than refi twice, we decided to hold out until we could refi into a traditional, but that calculation is different for everyone!
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| Posted 1/17/13 9:43 AM |
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hmm8191
My loves
Member since 3/06 2908 total posts
Name:
Heather
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Re: Refinance- where to begin?
Thanks so much for your input! We did put significant work into the house (new kitchen and added a half bath) so I don't think we'd be opposed to a new appraisal but that streamline is something to think about.
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| Posted 1/17/13 9:47 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Refinance- where to begin?
I would def start with your bank to see what their current rates are and to talk to them about the process. When we refinanced we ended up switching banks and we had to deal with the CEMA process which was a pain. Good luck!
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| Posted 1/17/13 9:49 AM |
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Mrs-D-Girl
Love my fur baby
Member since 8/07 5183 total posts
Name:
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Re: Refinance- where to begin?
Posted by Lori11514
I would contact Wells Fargo directly first even if you use a different broker. For FHA loans they have something called a Streamline Refinance. It doesn't require a new appraisal (which saves money) but I'm not sure if you can switch banks and do the Streamline.
A few months ago, we actually went all the way to the end of the Streamline Refi with our loan that is at 5.25% and backed out at the last minute. Although our overall payment would be lower, the PMI would be higher. PMI is currently tax deductible but is on shakier ground that the mortgage interest deduction. In addition, the length of time would reset to 30 years (losing the years we have already paid) and there would be fees associated with it.
Our plan has always been to refi into a conventional ASAP and the fed has indicated that interest rates will stay low until at least 2014. Rather than refi twice, we decided to hold out until we could refi into a traditional, but that calculation is different for everyone!
Same boat!! I am going though with it though since I don't plan on selling my home and my PMI will drop off once my principal goes down & my equity in the home goes up. I am getting 3.25% so I will never have to re-fi or worry about it again and with the $$ I am saving, I plan on making an extra payment and get the principal down faster. The 30 year is really not a factor, the loan value is based off of the loan now and not when you first bought the home.
I am switching banks as well.
Message edited 1/17/2013 2:57:53 PM.
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| Posted 1/17/13 2:57 PM |
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