Refinancing after chapter 7

[Tyrone Harris]

Good Evening

I am 2 years discharged from a chapter 7 BK. I want to refinance my primary residence and pull out some cash to invest. If I refinance and stay below the 80% LTV, do still I have to have PMI added to my loan?

Can I just do a conventional loan instead of an FHA?

I DONT WANT TO PAY ANY PMI'S!!!

Thanks in advance!

[Brenda E.]

It used to be 80%, but recently several banks are doing loan to value ratios at 75% for not having to carry PMI.

Can I ask you a question? If you are 2 years discharged, why are you trying to put your house at risk by pulling money out? What's your interest rate? How much of a mortgage did you take out? In another post I used the example that a $135K loan at 6% vs. a $135K loan at 3% is a difference of $250 a month! If you refinance, don't take money out to "invest" but refinance to give you more money each month; then, after a year or two, you'll have money to invest without risking your house and you'll be 3 or 4 years discharged! Don't rush to invest, if you save the money now, when the market softens, he who has the cash is king.

You have to start putting money in a savings account and if you refinance, put the extra in the account and watch it grow - you gotta get to where watching your acct grow excites you as much as the investment gamble.