PoeticDevice asked:
I purchased my home last year at 5.75% and now I called my lender to refinance. They told me about an FHA loan and how they can offer me 4.5%. The monthly total will also now reflect any insurance or mortgage tax I have to pay. Is this right?
I purchased my home last year at 5.75% and now I called my lender to refinance. They told me about an FHA loan and how they can offer me 4.5%. The monthly total will also now reflect any insurance or mortgage tax I have to pay. Is this right?
I use to pay around 1,750 a month, now I’ll be paying 2,082 a month. I was just hoping to lower the monthly payment but according to them, they must include the mortgage tax + insurance…yikes.
Sara
Raul
Im not sure about FHA, but we have a VA loan and our insurance and taxes are included in our monthly payments
Comment by Fort Sill Army Wife — May 22, 2010 @ 10:37 pm
William
My guess is the 1750/month covers Principal and Interest (PI) on the current loan. You also have to pay taxes and insurance (TI) on the property. You may pay TI directly to the tax jurisdiction and insurance company, or you may pay it into an escrow account with your mortgage lender.
The new FHA loan probably requires the TI to be paid via an escrow account. Even if it does not, you need to pay it to somebody. All mortgage lenders consider the total monthly PITI (Principal, Interest, Taxes, and Insurance) payments in relation to your monthly income when deciding how much you can borrow. The typical limit for PITI is 28% of monthly income, but your lender may vary…
Comment by Joe — May 24, 2010 @ 3:44 pm
Gail
that does not sound right .i just purchasd my home in august 2008 6.75% at 1188.00 per month.in the process of refi at5.00% new monthly paymemt 1008.00 thats with taxes and insurance included.the purpose of refinancing is to lower your rates and monthly payment not to increase.look more into that before signing any paperwork good luck!
Comment by LOVELY S — May 24, 2010 @ 6:06 pm
Norman
i don’t see the problem. At some point during the year you would have to pay the taxes and the insurance. The lender is just taking 1/12 of the total each month.
Comment by Real Estate Guy — May 26, 2010 @ 5:13 pm