Joe,
Google "Amortization calculator", and you should, get the numbers you're looking for. ,Your payment ,(if you're not on an ARM), will remain the same, but the months/years remaining will decrease.

You pay 40-45%, of total interest in the first 10 years of a 30 year loan, so paying extra early on will put you way ahead long term

ETA, I'm in Louisville if you're ever around

Hey Rowdy Yankee,
How have you been?
Staying busy with those HARP 2.0 refis?

Those FHA streamlines are just around the corner. I'm looking forward to those.

I've been way too busy the last 2 months, going to take a week off over Memorial Day holiday.

Take care,

Mortgageboss

Do you pay PMI based on the amount of the loan or the appraisement of the house?

Example - Buy a short sale. House appraised for $200k.
You get a loan for $100k with 10% down.

Would you need to pay PMI until you reach 20% of the $100k loan or not at all because of the value of the home verses the loan is already at 50%?


-Foxxz

In the process of doing a streamline/refi. We are always kind of casually looking at moving to a better school district but nothing that we need to do relatively soon. It was suggested we designate our existing home as an investment property/rental rather than a primary residence in the event we find another property we want to move on the bank will finance us on a second mortgage with a 1 yr lease in hand on the first mortgage. The rates are exactly the same. Is there a potential glaring downside I am missing, homeowners insurance, mortgage interest deduction?? It seems a no brainer to keep my options open in the event of a future unforseen move and I can't sell immediately. I think I would be able to rent without to much heartburn judging by what comparables rent for in my 'hood.

It looks like I missed one,

95BLuv, I can understand your ethical question. You have a mortgage to refinance but you might move sometime in the future? Unless you're actively looking and making offers on homes, you're probaly ok to go ahead and refi your present home. It could take a year or more to find that next home.

Now if you are in the process of buying another home, then you couldn't honestly answer the question "do you intend to occupy the home as your primary residence?" and should call it an investment property as your intent is to rent it out as soon as you move into your new home.

I've turned several of my former primary residences into rentals in the past and never had a problem with it. I knew that sometime in the future I would probably buy another home, I just didnt have anyting specific or a definite time frame for it. There is no fixed time you have to agree to live in the home.

Now just today, I got a call from someone wanting to refinance their FHA mortgage. He said he was about to close on a new home. He did try to get me to agree to calll it a primary residence, but I told hiim it was going to be an investment property. FHA streamlines will allow for the refinance of a property that is now a rental, albiet at a slightly higher rate.

I would certainly run the numbers to see if it makes sense.
How long are you going to be in the home?
How soon will you recoup any closing cost with the savings?
Can you shorten the term on your loan, ie go from a 30 yr to 15 yr?

Those are all questions to look at before deciding if refinancing is a good strategy for you.
You should also look at the no closing cost option, where you take a slightly higher rate but get the lender to cover your closing costs.

I am looking into refinancing this week to lower my rate. I'm just over 2 years in to a 30 year fixed, when I bought I put 20% down, but due to the market dropping further I will probably end up paying PMI. If the market recovers more, can I get the house appraised again to show <80% LTV and drop PMI or am I stuck with it until I hit 20% equity from the start of the loan?

Unless my house value dropped less than I think it may not be worth the refi because of PMI and closing costs.

Yes, the website is my main research site. I'm trying to get my Realtor up to speed on the program so she only gives me eligible houses.

Boss, thanks for taking over in my absence––really appreciate it.

One caveat on the FHA streamline changes, at my shop, the loan had to be Insured by the FHA prior to may 31 of 2009––and from what I've seen that means closing in late march or April , since there'S a slight lag between when you start making payments and when the FHA insures your mortgage

It's a conventional loan, It is owned by freddie mac, I just checked.
Current rate is 5.375%
I thought about going shorter term, but I'd like the flexibility to make the lower monthly payment if some emergency comes up. My plan was to refi into 30 year fixed again and continue making my current payments, with the savings from the refi going to principal and paying down the loan faster.

deleted

REPOSTED from my thread HERE - Click me


ETA: Questions on a HomePath Renovation Loan

Anybody do one of these or have experience with them?

My wife and I are looking to purchase a Fannie Mae foreclosure and we're seriously considering this mortgage product. My brother is a GC, so I don't have to worry about trusting my contractor for the renovations.


Any hang-ups or potential problems the lender wouldn't think to tell us about?

The home looks to be in move-in condition but needs some updating in the bathrooms (1970 house). Kitchen has recently been redone and new windows installed. Roof looks good, gutter needs a couple new hangers installed. It has a finished walkout basement with a two car drive under garage. All of the bathrooms are above the garage area so the plumbing is all exposed and seems to have been upgraded as well. I couldn't see any exposed wiring and the breaker box seemed to be in good shape and tidy.

If we get the house for the most recent counteroffer + the renovations we plan to do, we should have about 20K in equity when we move in. Prices of homes in the neighborhood range from 140-160K.

We both have FICO scores above 750. We both work and we currently have no children.

We've been looking at houses since December and this is the nicest foreclosure we've seen so far. Most have had mold in the basement, exposed wiring, missing fixtures, broken toilets, ripped up flooring, missing shingles, etc.....

I bought my first home in april 2010 at 5% interest on a 30 year loan.

My credit score is 780.

My total home payment with pmi, escrow and taxes is about 40% of my gross income.

I am interested in refinancing at no up front cost to me...ie, rolling any costs into a new 30 year mortgage.

My current loan is a fha loan. Wells Fargo bought the paper.

What interest rate should I stand pat on when I speak with my local broker and what total dollar amount can I expect to pay all told per fees, etc?

Thanks in advance.