should I put all of our extra money toward paying down our mortgage due to our variable interest rate?
We haven’t done an appraisal yet but it looks like we don’t have the qualifications to refinance for a conventional loan until we pay it down to the 80% they are willing to refinance. I’m very concerned about the interest rates going up and I don’t know if we qualify for an FHA loan but don’t want to do that anyway because the fees and PMI are high. We have the extra money to work that loan down right now, but we also want to start investing. Thanks
There’s really not enough information here to fully answer. I would want to know things like your total monthly income, interest rate, and age. But in general, yes it is a good idea to pay down your mortgage so you can be in a position to refinance as soon as possible. However, in the even that you have a long ways to go, PMI may be a reasonable cost to assume in order to avoid the risk of increasing rates.
FHA Purchase and Refinance Mortgage Loans in Colorado!
Routing your refi journey
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The above mentioned are the basic requirements in order to qualify for a home loan. Secondly, I was interested to know how big a home loan I could get considering Mortgage Appraisal Fha. As soon as I knew how much, I could start searching for a house.
Mortgage Appraisal Fha
Why is my mortgage lender requiring our LTV ratio to be 75% to drop PMI?
We have a non-FHA mortgage loan that is 2 years old. We bought the house for less than it was appraised for, and have now payed the loan down to less than 80% of that original appraisal, so I contacted the lender regarding removing PMI. They say we are not eligible to drop PMI based on a LTV of 87% because they are using the purchase price rather than the appraisal price.
However, they said that to remove PMI based on a _Current_ appraisal, we would have to pay the loan down to 75% of the current appraisal, since our loan is less than 5 years old.
Why 75%? I thought it was always 80%! Is this legal?
I would have the house reappraised and see if your balance is less than 80% of the appraised value. If that is the case, it might be worth refinancing so you can drop the PMI. Not sure why the bank told you 75%, there might be some fine print in your mortgage with them, read over that then talk to someone higher up at the bank.