Mortgage Refinance Question

[hornhooper]

I saw a deal to refinance your mortgage without paying PMI. The loan did not require a 20 percent down payment. Can someone help me finding the company or an email?
My specifics:
Owned home for 2 years
We have 8 percent of equity paid on the house

 

[mileslong]

pretty much any non conforming lender will do your refinance with no pmi regardless of your loan to value. one major difference is that going non conforming will typically have a pre payment penalty that you should be aware of. that penalty is typically six months payments minus 20%.

nno conforming lenders will often try and charge more points than conforming lenders typically so though that is negotiable.

 

[Bernard]

I don't think you can charge a prepayment penalty on a home loan in Texas.

If eliminating PMI is your only goal, you're better off just throwing some extra cash toward your mortgage until it's below 80% loan to value. The fees for refinancing can be high. You really need to save some money on interest to make it worthwhile.

Bernard

 

[tropheus]

maybe an 80% loan followed by a 10% sub-loan and you putting 10% down (8% already). I've seen 80-15-5 before too.

 

[PureTexan]

Tropheus nailed it. Take out a second lien (usually a 15-year note). Since you have 8% equity, your first loan would be 80% and your second would 12%. That eliminates PMI.

And yes, there are plenty of lenders that charge pre-payment penalties, it's not illegal in Texas.