Why would you consider refinancing if your mortgage is only two or three years old and the rate is not considerably higher than what is currently available on new loans? Because you may be able to eliminate the mortgage insurance and have significant monthly savings. 
Many homes have seen their values rise in the past few years. The current loan-to-value ratio may be low enough to no longer require mortgage insurance. In some cases, a homeowner might actually pay a little higher rate than they currently have but lower their monthly payment dramatically because the mortgage insurance isn’t required.
A rough rule of thumb is that mortgage insurance is not needed on loans at or less than 80% of value. There could be programs available that would allow a higher LTV than 80%.
Careful consideration should also be given to the fees required to refinance. Lenders differ in not only the rates they charge but also the fees associated with the loans and the process. If you’d like a recommendation of a trusted mortgage professional, we’d be happy to make a recommendation.
Published by Trey McCallie
Trey McCallie is the Principal Broker for Realty One Group Bluegrass. Trey sells residential real estate in Central Kentucky and is responsible for recruiting, mentoring, and training agents. He has 17 years of experience in Real Estate and 25 years total in sales and marketing.
Before real estate, Trey sold data storage and management solutions to Fortune 1000 and mid-market organizations representing companies such as Oracle, Sun, EMC, and HP.
Trey is a native of Roanoke, VA where he lived for 22 years.
Trey began his career in Real Estate with Napier Realtors ERA in the West End of Richmond, VA. In 2007, Trey sold 30 homes and produced $6.15 million in volume, earning national recognition from ERA.
In 2008, Trey was hired as the Managing Broker of Long & Foster’s Blacksburg, VA office. Long & Foster is the largest privately held real estate company in the U.S., with 220 offices in the Mid-Atlantic. In Blacksburg, he managed 35 agents and 2 staff. While at Long & Foster, he was named to the Executive’s Club and drew rave reviews from the agents he mentored.
Trey is an avid college football fan, following the Virginia Tech Hokies since he was young. He has traveled to many of the ACC stadiums and will now start marking some SEC stadiums off his list.
Trey also enjoys golf, serving his community, concerts, and movies. Trey has been a Rotarian since 2003, serving as Sergeant at Arms and Director of Membership; he recently joined the Rotary Club of Lexington.
Trey is married to DeeDee Robinson. DeeDee is the Enterprise Administrator for Capacity Command at UK Healthcare. DeeDee has encouraged Trey to follow the Cats as well as the Hokies so he is adding many BLUE items to his wardrobe. Trey and DeeDee have a daughter, Harper Lawson, born in July 2012 and son, Spencer, born in June 2014.
Trey is a graduate of Randolph-Macon College in Ashland, VA where he remains involved as a member of the Board of Associates and Presidents Society Executive Committee.
Trey is also a member of the Pi Kappa Alpha Fraternity and is an alumni advisor to the Kappa Chapter at Transylvania University.
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