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swkmjy · Joined: 18 Jan 2011 Posts: 1 1.40 Dollars($)

hi, i'm in NJ. i got a 30 yrs fixed rate mortgage of $430000 in 2005. THe house value at that time was $540000. Now i'm considering to refinance since the rate has been lowered. But i don't have cash to pay anything at this point. Do you think it's possible? Do you think it's a good time to refinance in my case? And what kind of rate i can probably get and how much i need to pay monthly? Now the house value is around $485000. I've paying about $3000 monthly since 2005 including the mortgage and property tax. No principals has been paid so far. My credit score is about 780. Thanks.

jameshogg · Posted: Wed Jan 19, 2011 12:14 am Post subject:

Hi swkmjy,

If you have equity in your property, then you will be able to refinance the mortgage. However, you will have to pay the down payment if you wish to refinance your mortgage. If you're unable to provide the down payment, then you'll have to go for the option of private mortgage insurance (PMI).

Thanks

durenas · Posted: Wed Jan 19, 2011 12:26 am Post subject:

I would wait at least 6 months rates are falling rapidly like the stock market. No sense in barely changing what you pay when a little time will save you thousands.

sabrinatoss · Posted: Wed Jan 19, 2011 1:39 am Post subject: fixed home loan

I think you should wait for at least a couple of month until you are stable enough and can already manage financial obligations. In your case, refinancing is a better idea but as what I've told you, you need to settle previous obligation first.

jveenstra · Posted: Wed Jan 19, 2011 2:29 pm Post subject: Refinance

It appears you have an interest only loan.
We have no idea what rate you have now and have no idea if rates now are lower than what you have.

You got a $430,000 mortgage in 2005.
It can not be a mortgage owned by Fannie Mae of Freddie Mac because their maximum mortgage in 2005 was $359,650

Special refinance programs exist for properties that decreased in value if the existing mortgage is owned by Fannie Mae or Freddie Mac. Yours is not.

If the value of the property is less than $550,000 you will not be able to refinance and cover costs without having Private Mortgage Insurance (PMI). That would eat up any of your savings.

If you want an amortiizng mortgage rather than interest only, you could look into the monthly payments with PMI.

Ask your existing servicer if they will do the refinance to the current rate with no PMI. Some do and some do not.

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