Reply to Explain to me the what the benefits are to REFI

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Reply to "Explain to me the what the benefits are to REFI - I am just not getting it."

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP HERE - it was a 30 year mortgage to start and we are 8 years into it.  So quite a bit of time left on it. [/quote]

We had exact same numbers as you and did a 15 year refi at 3.25.  Our payment went up $100, but we shaved 7 years off.  Just crunch the numbers to see what is best.[/quote]

Who did you use?  We are currently with Navy Federal so no PMI involved, but I don't think that they will give the best deal on a REFI.[/quote]

There's never no PMI involved if you didn't put down 20 percent.

The way Navy Federal works is that it builds the PMI into the rate.  That's why your rate is so high at 6 percent, because your PMI is including in the rate (i.e. you pay a higher interest rate and the lender pays the PMI).

A lot depends on how long you plan on staying there as well as what your house will appraise for.  If you do not have 20 percent equity in your house, then you will not be able to refi without paying PMI or building it into the rate (which means you aren't going to get as low a rate as everyone here is saying).

The first thing you should do is find out (look up some comps) what other houses are selling for in your neighborhood.   You really need to know if you have 20 percent equity.[/quote]

Or a VA loan...[/quote]

Yeah, but I don't think that's what OP did.  Navy Federal advertizes a 100 percent ltv loan with no PMI.  And when I called about it, they explained it's a slightly higher interest rate.  They pay the PMI out of the higher interest rate.  At least that's how it was explained to me, because I saw the advertisements about no PMI, and I was curious.[/quote]

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