Ringo I hope you don't mind but I was just about to make my own thread when I saw your thread as I have a question I'd like to seek advice on.

 

Mods if I'm hijacking his thread feel free to separate this question.

 

Most of you know I bought my house last year (April to be exact) well it was an FHA loan, so we have a PMI because I only put 3% down. The PMI insurance upfront was $1606 due at closing, that went into my escrow as I understand it to pay for my PMI from April 2014- April 2015. Now in addition every month I have an additional $102 PMI payment that is part of my mortgage payment escrow, So over the last 12 months that would mean I've paid an additional $1,122 (11 payments there was no mortgage the first month). Now they called me last month and said "great news" you qualify for this FHA Streamline refinance to lower your PMI, I thought ok, what's the catch. Long story short they want to add another $2,000 in principle to my loan but it'll lower my interest rate from 4.75% to 4.25% and my PMI monthly payment from $102 to $61. Part of that $2,000 being added to my principle is another PMI prepayment of $1628 to which my question is if you're making me pre-pay for 2015-2016 what the hell happened to my $1,122 of payments made to cover the current PMI from 2015-2016?

 

I'm thinking about saying thanks but no thanks I'll keep my higher interest and PMI payment with a lower principle and refinance later on down the road.

 

advice?

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