[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]
The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.
Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.
SDEngineer – thanks for your feedback.
Anyone – how do you calculate PMI?
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On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).
Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.
