Bought my first home and trying to get PMI off....

[Joy Peterson]

Hello Everyone,

I only put 5% down on my home in Denver but a company offered me the deal below. The "Proposed Loan $1,400 COST" looks like a good option for us. We pay $1400 but it will get our PMI off the loan. What do you guys think? Is this too good to be true? The company is called Vertex Financial Group.

Thank you for your call today, it was nice talking with you about your current loan and what's available to you on a refinance. To recap- Vertex specializes in a true No Cost loan, where the lender will cover all of your loan closing costs for you. You can also pay loan costs if you'd like a lower rate. I will put a table together showing you your options. Typical loan closing costs in Colorado on a refinance run around $3,000 total. The key for you guys would be to get into a loan that eliminates PMI mortgage insurance from your payment. We can do that even though you do not quite have the 20% equity in the home yet.

Comparison – Current vs. New Proposed Mortgages

	Current Loan	Proposed Loan NO COST	Proposed Loan $1,400 COST	Proposed Loan $3,000 COST	Proposed Loan $4,400 COST
Loan Balance	$346,000	$346,000	$346,000	$346,000	$346,000
Interest Rate	4.375%	4.500%	4.375%	4.250%	4.125%
P & I Payment	$1,754.51	$1,753.13	$1,727.53	$1,702.11	$1,676.89
Monthly Taxes and Insurance	$427 w/PMI	$297	$297	$297	$297
Total Monthly Payment	$2,181.51	$2,050.13	$2,024.53	$1,999.11	$1,973.89
Months to breakeven on costs		0	53	58