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If you have enough monthly income to be able to afford the payments on a 15yr loan for all your debt, then you certainly have enough monthly income to pay off the 2nd quickly without refinancing. You left out info about any other debts you may have besides the mortgage, but if you have any, considering that you can’t even refi without PMI (nondeductible) I would recommend using your solid income to pay off all the other debt (with nondeductible interest, assuming it is at a net-after-tax rate greater than 10%) first, and then pay down the 2nd as fast as possible. If your income isn’t substantial enough to do that, then it’s probably not substantial enough to make ratios on a 15-year loan for all of your debt combined, or at least not to get a good enough rate on that loan to make sense to refinance.
You may still want to get rates for this loan from a lender and run the numbers, but be up front with them that this is a 95%+ LTV loan as I suspect most can’t do it or can’t give you a decent rate, plus you have to estimate the PMI on top of that.
where? Dallas, very small chance. Sacramento — no prayer.
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in the present market, I very much doubt that any firm will want this deal. expect maybe your second mortgage lender — if that’s a bank or mortgage company and not a person.
If it were me I would refi now, even tho you will have the PMI once you reach 80% LTV, you can remove the PMI just keep track they will not inform you. The reason that I say refi is that the other debt you do have I bet you are paying a lot more in interest than the PMI will be. Take a 30yr fixed with no prepayment penalty.