I have 20% equity built up in my home but still have PMI of $150 per month. Is refinancing my best bet to remove this?
I have a 30-year FHA loan at 4.125% with a loan balance of approximately $125,000 and a market value of $165,000, my monthly payment is $1,050 / month. I hate paying for private mortgage insurance (PMI) and have contacted my lender, Bancorp South, to eliminate this premium because my current market value less mortgage balance results in more than 20% in equity. Yet the estimate for refinancing is approximately $650 / mo. Obviously, this balance does not include insurance or PMI. Can I save money refinancing now and how do I get rid of my private mortgage insurance expense?
Answers | 1
Mortgage Professional in Seattle , WA
November 15, 2016
Asked by Mark Fidelman
Asked by Daniel
Answered by Donn Sharer
CFP ChFC CLU in Millstone Township, NJ
Hi Daniel - Congratulations! First-time home buying can be daunting and it’s pr...