Tell me about refinancing

[jackie011]

How do you get started? Who do you call? What should I expect from the process?

FWIW, we bought in 2009, and received the first time home buyer tax credit. We have an FHA loan at 5%. We do not have 20% equity in the house. We also do not have a lot of cash to bring to the table for closing costs, etc.

I just feel like we're missing out when we hear about all of these historically low interest rates, and want to look into it, but not do anything binding.

[jenjen]

I started by emailing my mortgage guy who I went through for the purchase. He has always been really helpful so I asked him for estimated closing costs, estimated monthly payment, etc.

We just bought last year and had a 4.75% rate and locked in a few weeks ago at 3.875. We've put a lot of cash/work into the house so now we can drop PMI. Our closing costs are approx $2100 I think... or maybe $2500.

Refinancing won't have anything to do with your first time homebuyer credit. However, someone here could probably tell you more (or maybe you can find an article on google) but last year the monthly PMI amount on FHA loans increased which was making it difficult for people to refi (they were paying less on the loan and more on PMI). I belive there is some kind of deal for people who closed on their FHA loan pre June 1, 2009 so that if you refi now, your PMI will be lower than if you closed after June 1, 2009.

[jackie011]

Ooh, I didn't even think about that whole PMI thing. I did receive a letter about it, but DH didn't think it applied to us.

Guess I need to make some phone calls and see what happens. We used our builder's preferred lender and the builder is no longer in business, and I have no idea what happened to our original loan guy. The whole thing is shady and I wouldn't use them again, anyway. I did like the person listed on our mortgage as the one to contact should you have questions, but I also noticed that she's no longer with the mortgage company, so we're back to square one!

Our State Farm guy has contacted us in the past about refinancing, maybe we'll start there?

[80sjunkie]

Bankrate.com can also tell you what brokers work in your area.