PMI Help

[Justin R.]

Hello BP,

I have a friend who is in a predicament. He was in a subprime loan and foreclosed 5 years ago. He has purchased a new home for him and his family, but is currently paying 600 a month in PMI. Although he does have 80/20 LTV he has not been able to refinance due to his semi recent foreclosure. Is there any way to obtain conventional in this situation?

Thanks for your advice!

[Chris Mason]

Originally posted by :

Gotcha @Chris Mason , so either Refi now with the new lower FHA, or just wait out the next year and a half until he can qualify for a conventional?

Yup more or less. Need to figure out of the cost of a 2nd refinance is greater or less than the FHA MI savings. Let's roll with my ballpark $225/month number.

$225/month * 24 months till he can refi conventional = $5400. EDIT

$225/month * 18 months till he can refi conventional = $4050.

Typical cost of a refinance in CA = way the hell less than that.