refinancing-pmi-bankruptcy

LowerMyBills.com

The mission of LowerMyBills.com is simply to help every American
household save money for the important things in life.

I came up with the idea for LowerMyBills.com after my wife and I
bought our first house. I was just plain frustrated trying to find the best offers for everything from insurance to long distance. It was not just frustrating, it was time consuming, and I could never be sure I was getting the best deal.

• Free refinancing
• Removing PMI
• MLS - multiple listing service
• Insurance quotes
• Broker vs. Banker

Free Refinance-Yield Spread Premium

There is no such thing as a free lunch. A free refinance works like this. There are three ways your Loan Officer including myself get paid in the business. There are discount points, origination fees and YSP AKA backside pricing. Politically being correct Yield Spread Premium. Y.S.P. for example: Let's say the rate today range from 5% -6% on a thirty-year fixed mortgage. The market rate is about 5.5%. If I quote you a rate above 5.5% then I am making the bank money, because the rate is above market pricing. The Rebate can be anywhere from 1% of your mortgage to 4% of your mortgage. This is how a no cost loan is done. The standard cost is recouped inside the YSP. So there is no money added to your mortgage and the Loan Officer, Title Company, Bank, Processor, Underwriter, Notary, Attorney still gets paid.

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Removing PMI, Principle Mortgage Insurance

The only way you can remove PMI is if your LTV is below 80%. If your loan amount is above 80% and you still would like to remove the PMI, you will need to break up you loan into an 80/20. An 80/20 is simply refinancing your mortgage to bring the first to the 80% LTV required to drop PMI. You will have a 2nd mortgage; however, you will be able to write more interest off on your taxes because of this. Unfortunately, when you pay PMI, you cannot write of the PMI factor on your taxes. This is why everyone hates to pay PMI. It does no benefit you, it benefits the lender incase your house goes into foreclosure. If you have been paying PMI, but your LTV is still too high, and you would like to avoid the cost of a refinance you can always have an appraisal done on the house to see if you LTV has dropped. PMI works in levels. Certain LTV levels have to pay a certain PMI factor. The lower the level, the lower the PMI. Example:

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