I have an existing FHA insured loan taken out in June 2002, I refinanced a year later in 2003 at 6% which is what I'm in now, I currently have 18 years remaining but my lender has told me that I will have to pay PMI for the life of the loan because I didn't pay any UFPMI but the lender cannot produce any paperwork that I signed agreeing to the fact nor do I have any paperwork in my closing documents from 2003.
I have inquired with another lender to do a 30 year streamline refinance at 4.375% no appraisal with total fees at @$1800, after a lender credit of $1200. using the original value of the home at $98,500 and my current balance of $78,300 at the same monthly MIP I am paying now around $33 a month. My P&I would decrease $174 a month. I plan to stay in this condo since I am a 50 year old disabled individual and have limited income.
A few questions. Since my original FHA case number was issued prior to June 2009, will the monthly MIP continue for the life of the loan or will it drop off after 5 years? Also, given the facts of the new loan, is adding 12 years to the loan at the lower rate a wise choice? Should I pay for a new appraisal which would come back easy at $120K to lower the LTV?
I hope I didn't leave anything out but any feed back would help, as I am having a difficult time deciding if I should continue with my current lender or start the new loan.