Will I have to pay mortgage insurance because of my Making Home Afforable refinance?
No, you won’t. If your home loan doesn’t require private mortgage insurance as-is, you won’t have to start paying it on your new home loan. The logic behind the move was detailed in a letter to mortgage insurance companies saying, in summary, any new mortgage is going to have lower payments and, therefore, be less risk. In other words, there’s no more need to insure the new loan than there was the old one. I pay private mortgage insurance now. Will my mortgage insurance payments go up with a new Making Home Affordable refinance? No, your private mortgage insurance payments will not increase, based on the same letter referenced above. However, the “transfer” of your mortgage insurance policy requires some extra steps. Remind your lender than you’re paying PMI to help the process move more smoothly. What’s the biggest mortgage I can get with a Making Home Affordable refinance? Obama Plan refinances are limited to the lesser of 105% of the home’s value, or the area’s conforming loan limit
