I bought my house 3 years ago for $155,000. I currently have a 30-year FHA mortgage where I still owe $142,000. 4.19% interest. I have to pay mortgage insurance in the amount of about $200 per month. The mortgage insurance is required for the life of the loan, no matter what my equity is.
The house appraised at $155,000 when I bought it. It's now worth $210,000 (Dallas...) so I suddenly have more than 20% equity. I can refinance for 4.00% interest, 20 year conventional mortgage. The mortgage insurance goes away and the monthly payment goes down about $20 a month.
I save 7 years off the mortgage and get a lower monthly payment. What's the catch? When I'm buying a product like this there has to be a downside, right? I can't figure one out. I've been asking around for an opposing view and someone suggested I ask here.
Submitted October 21, 2017 at 08:39AM by rikers_evil_twin http://ift.tt/2zqufpP
