+1 vote
my rate is 4 percent - looks like i can get it down to 3.5 for 15 year fixed
asked Nov 28, 2017 in Refinancing by Kelly

2 Answers

+1 vote
There are advantages to refinancing early. For one, you are not extending your home repayment by too much. And if you exchange a 30-year loan for a 15-year one, you're actually shortening the repayment period. But you might want to consider other options besides FHA. For one thing, if you refinance into a new FHA home loan, you pay mortgage insurance premiums no matter how much your value increases. So it probably won't make sense to have that loan for 15 years

Before streamlining into another FHA loan, check out your property value. Get some comparisons from lenders -- FHA versus conventional (non-government) products. Especially if you have good credit, a Fannie Mae or Freddie Mac mortgage might save you a lot in mortgage insurance premiums and provide a lower rate as well.
answered Nov 29, 2017 by GinaPogol (47,650 points)
0 votes
I would explore the net tangible benefit with loan officer.
answered Feb 7, 2018 by GustanCho (106,540 points)

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