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Guest

Hello everyone,

I purchased a home two years ago with a 30 year fixed rate mortgage at 6.5% for $275k. Given the fact that interest rates have fallen to about 5%, my family and I have been trying to determine if this is a good time to refinance.

We currently owe $212k on the mortgage plus $30k on the home equity loan. The home's value, according to zillow.com and chase's home valuation tool has reduced in value to $254k. If the mortgage plus home equity are added together, we owe a total of $242k. So while we are not under water, we are close. We also have excellent credit.

Do you think we will be able to find a company to refinance our home? We will either be looking for a 20 or 25 year mortgage through the refinancing. Your thoughts are sincerely appreciated. Please feel free to ask follow up questions.

raymond · Posted: Sat Nov 28, 2009 11:40 am Post subject:

>>Do you think we will be able to find a company to refinance our home?

Yes - with excellent credit you should be able to do an FHA rate and term refinance.

Guest

Raymond, thank you for the response. With a FHA refinance, we will be required to get PMI, correct? Wouldn't that negate the value of refinancing due to this added cost?

raymond · Posted: Sat Nov 28, 2009 12:44 pm Post subject:

>>we will be required to get PMI

Yes. FHA may or may not make sense for you, but it's a potential solution and you should be reviewing all solutions. Your interest rate will go down, saving you money but you'll have PMI, costing you money. Find a Loan Officer that knows how to use "Mortgage Coach". That's a software program that'll compare mortgage programs side-by-side, so you'll be able to make an informed decision.

eric1 · Posted: Sat Nov 28, 2009 8:02 pm Post subject:

Yeah FHA may not make sense for him due to the LTV level. However, he should explore all options..

"http://www.dreamhomefinancing.com/FHA.aspx"

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Is now a good time to refinance in my situation?