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Superman
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 Posted: Sat Nov 28, 2009 1:59 am Post subject: Is now a good time to refinance in my situation? |
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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 $242k. So while we are not under water, we are close. We also have excellent credit.
Do you think we will be able to find a company to refinance our home? We will either be looking for a 20 or 25 year mortgage through the refinancing. Your thoughts are sincerely appreciated. Please feel free to ask follow up questions.
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 raymond
Community Experts
Joined: 03 Jul 2009
Posts: 690
Location: Orange County, CA
110.73 Dollars($)
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| Posted: Sat Nov 28, 2009 11:40 am Post subject: |
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>>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.
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Raymond
www.ReverseMortgageCounselor.com |
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Superman
Guest
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| Posted: Sat Nov 28, 2009 12:34 pm Post subject: |
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| 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? |
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raymond
Community Experts
Joined: 03 Jul 2009
Posts: 690
Location: Orange County, CA
110.73 Dollars($)
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| Posted: Sat Nov 28, 2009 12:44 pm Post subject: |
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>>we will be required to get PMI
Yes. FHA may or may not make sense for you, but it's a potential solution and you should be reviewing all solutions. Your interest rate will go down, saving you money but you'll have PMI, costing you money. Find a Loan Officer that knows how to use "Mortgage Coach". That's a software program that'll compare mortgage programs side-by-side, so you'll be able to make an informed decision.
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Raymond
www.ReverseMortgageCounselor.com |
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eric1
Community Experts
Joined: 04 Jan 2009
Posts: 1348
201.48 Dollars($)
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