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german · 10-31-2007, 03:09 PM

i am leaving an arm. i am refinancing. my property loan (refi) is at 6.5% 30yr conform fix. broker fee is $350. was told i need to have mort ins, do i really need that? my monthly repays will be approx 62 for mort ins, 915 for loan, and 145 for taxes, totaling about 1100 per month. the good faith est shows est closing costs at 2300. does that sound about right? thanks.<br />

acreativepage · 10-31-2007, 03:09 PM

Unless you have an LTV of less than 90%, they will likely require you to get mortgage insurance. You don't want to get it if you do not need to get it. Negotiate with the lender if you can.

baby · 10-31-2007, 03:09 PM

It depends if your new loan is fha or greater than 80 ltv, if it is you need mtg ins. the closing cost sound very reasonable.

avitse1341 · 10-31-2007, 03:09 PM

cant tell without a refinance amount! and know your score

JobMixer · 10-31-2007, 03:09 PM

Mortgage insurance is required for any conforming loan where you have less than 20% equity left in the home. Those are the loans with the lower rates. The way around this is to get a second mortgage for anything over 80% of the value of your house. Those second mortgages charge higher rates, so you end up paying that way as well.
The closing costs seem reasonable.

alien · 10-31-2007, 03:09 PM

What ever is on the Good Faith Estimate (GFE) is correct as long as you don't challenge it.

Mortgage insurance is payable because your loan amount exceed 80% of the appraised value of your home. You can avoid this by requesting two different loans.

One loan would be at 80% of the value of your home appraised value. The other loan would cover the remaining loan balance.

With these two mortgage loans you would not be required to pay the mortgage insurance as required when you exceed 80% of the appraised value. You would also be able to deduct any interest on both loans.

You should check with your tax consultant and see if you are qualified to deduct your mortgage insurance from your federal income tax. This is now allowed. You have to fit into a certain earning bracket to qualify for this tax benefit.

In any refinance there are certain charges you have to pay that are required by the lender.

Fees are normally broken down into two areas

A. Recurring (Check your GFE)
1. County taxes
2. Hazard (fire) Insurance

B. Non-Recurring (Check your GFE)
1. Title Insurance charges and fees
2. Mortgage/Lenders fees & points
3. Doc Signing Fee
4. Appraisal fee

Normally your points and fees you pay for refinance or purchase of a house are tax deductable over the life of the mortgage. You should take your closing documents to your tax consultant to see what items are deductable and what items might not be deductable.

There are some mortgage brokers that have mortgage programs that charge the customers no points and no fees. On the surface this might be a good program, but we all now that no one work for free.

The payment for one of these mortgages is the rate is increased slightly to cover the closing cost and any other cost involved in the mortgage.

You should check and see which is better for you and is more advantageous to you and your situation.

When you refinance your home you should also tell your tax consultant.

I hope this has been of some use to you, good luck.

"FIGHT ON"

deli08 · 10-31-2007, 03:09 PM

You don't have a choice if you want to refinance into 1 monthly payment and are borrowing more than 80% of the appraised value. This is a risk based insurance that protects the lender it is standard in mortgage financing. Effective 2007 mortgage insurance is tax deductible for households making I believe 100,000 or less. Once you have paid down the mortgage to 78% you can call and request the mortgage insurance to be removed early. If you do not initiate the call it will be removed at 80% for conventional financing.
You could do an 80% 1st mtg and a second mtg for the remainder to avoid PMI but you will have 2 monthly payments and 2nd mortgages have a higher rate.
FHA loans work differently if you are obtaining a 30 yr loan it does not matter if you borrow less than 80% you still have to pay MI for 5 yrs. FHA 15 yr programs will allow the MI to be waived.

Alex3 · 10-31-2007, 03:09 PM

Broker fee $350 est. closing $2300 (?)

Loan amount around $145K / 6.5%
What is the LTV ?

10-31-2007, 03:09 PM	#1
german Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	mortgage refinance question? i am leaving an arm. i am refinancing. my property loan (refi) is at 6.5% 30yr conform fix. broker fee is $350. was told i need to have mort ins, do i really need that? my monthly repays will be approx 62 for mort ins, 915 for loan, and 145 for taxes, totaling about 1100 per month. the good faith est shows est closing costs at 2300. does that sound about right? thanks.<br />

10-31-2007, 03:09 PM	#2
acreativepage Greenhorn Join Date: Jan 2007 Posts: 8 Rep Power: 0	mortgage refinance question? Unless you have an LTV of less than 90%, they will likely require you to get mortgage insurance. You don't want to get it if you do not need to get it. Negotiate with the lender if you can.

10-31-2007, 03:09 PM	#3
baby Greenhorn Join Date: Jul 2006 Posts: 14 Rep Power: 0	mortgage refinance question? It depends if your new loan is fha or greater than 80 ltv, if it is you need mtg ins. the closing cost sound very reasonable.

10-31-2007, 03:09 PM	#4
avitse1341 Greenhorn Join Date: Apr 2007 Posts: 17 Rep Power: 0	mortgage refinance question? cant tell without a refinance amount! and know your score

10-31-2007, 03:09 PM	#5
JobMixer Greenhorn Join Date: Jul 2006 Posts: 18 Rep Power: 0	mortgage refinance question? Mortgage insurance is required for any conforming loan where you have less than 20% equity left in the home. Those are the loans with the lower rates. The way around this is to get a second mortgage for anything over 80% of the value of your house. Those second mortgages charge higher rates, so you end up paying that way as well. The closing costs seem reasonable.

10-31-2007, 03:09 PM	#6
alien Piggy Bank Join Date: Jul 2006 Posts: 63 Rep Power: 6	mortgage refinance question? What ever is on the Good Faith Estimate (GFE) is correct as long as you don't challenge it. Mortgage insurance is payable because your loan amount exceed 80% of the appraised value of your home. You can avoid this by requesting two different loans. One loan would be at 80% of the value of your home appraised value. The other loan would cover the remaining loan balance. With these two mortgage loans you would not be required to pay the mortgage insurance as required when you exceed 80% of the appraised value. You would also be able to deduct any interest on both loans. You should check with your tax consultant and see if you are qualified to deduct your mortgage insurance from your federal income tax. This is now allowed. You have to fit into a certain earning bracket to qualify for this tax benefit. In any refinance there are certain charges you have to pay that are required by the lender. Fees are normally broken down into two areas A. Recurring (Check your GFE) 1. County taxes 2. Hazard (fire) Insurance B. Non-Recurring (Check your GFE) 1. Title Insurance charges and fees 2. Mortgage/Lenders fees & points 3. Doc Signing Fee 4. Appraisal fee Normally your points and fees you pay for refinance or purchase of a house are tax deductable over the life of the mortgage. You should take your closing documents to your tax consultant to see what items are deductable and what items might not be deductable. There are some mortgage brokers that have mortgage programs that charge the customers no points and no fees. On the surface this might be a good program, but we all now that no one work for free. The payment for one of these mortgages is the rate is increased slightly to cover the closing cost and any other cost involved in the mortgage. You should check and see which is better for you and is more advantageous to you and your situation. When you refinance your home you should also tell your tax consultant. I hope this has been of some use to you, good luck. "FIGHT ON"

10-31-2007, 03:09 PM	#7
deli08 Piggy Bank Join Date: Jul 2006 Posts: 51 Rep Power: 6	mortgage refinance question? You don't have a choice if you want to refinance into 1 monthly payment and are borrowing more than 80% of the appraised value. This is a risk based insurance that protects the lender it is standard in mortgage financing. Effective 2007 mortgage insurance is tax deductible for households making I believe 100,000 or less. Once you have paid down the mortgage to 78% you can call and request the mortgage insurance to be removed early. If you do not initiate the call it will be removed at 80% for conventional financing. You could do an 80% 1st mtg and a second mtg for the remainder to avoid PMI but you will have 2 monthly payments and 2nd mortgages have a higher rate. FHA loans work differently if you are obtaining a 30 yr loan it does not matter if you borrow less than 80% you still have to pay MI for 5 yrs. FHA 15 yr programs will allow the MI to be waived.

10-31-2007, 03:09 PM	#8
Alex3 Piggy Bank Join Date: Jul 2006 Posts: 80 Rep Power: 6	mortgage refinance question? Broker fee $350 est. closing $2300 (?) Loan amount around $145K / 6.5% What is the LTV ?

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