Dear FatWallaters,
Last summer I bought my first home.
The mortgage balance is 181k with BoA interest rate = 6.875%, 30 years, payment $1,208 and no PMI.
The property is in New Hampshire.
I decided to do refinancing to decrease interest rate. First, since on FW may people talk about
Madrate, I contacted them, but they do not work in NH. I shopped around, and found that the
best deals I could find are in National Mortgage Alliance.
The appraisal estimated in Feburary that the value of my home is 205K, and therefore if I do refinance I will need to pay PMI until my mortgage balance is 165K. I decided to cancel the refinancing.
Now, however, i am thinking that may be it is not a bad idea to do refinancing even with PMI, if the
difference in interest I am paying minus interest I am going to pay is bigger than PMI and if the refinance will cost me nothing or almost nothing.
Here the questions I have:
1. Who and how calculates PMI? Do all lenders will have the same PMI value? Does this decrease as ration of property value to mortgage balance increases?
2. Has anyone heard anything about National Mortgage Alliance?
3. Does it really makes sense for me to do refinance?
Thank you,
Soleen
