| Author |
Message |
|
|
 ajeetk
Joined: 05 Oct 2009
Posts: 2
1.58 Dollars($)
|
 Posted: Mon Oct 05, 2009 11:57 am Post subject: refinancing to new load |
|
|
I currently have a house whose approx value is 490,000. The total loan is 540,000 (first 470,000 and second 70,000). My loan (which was 3/1 ARM initially) rate now is adjusting every year. This September the rate went to low 3.75% (good for me). One of the bank agent contacted me and offered me a FHA 5% rate 30 yr fixed loan. If I go for it , my monthly payment will increase by around $500. Part of increase also has the MI (insurance) of around $200. The new loan terms also require me to escrow the property taxes.
Is is worth going for the new loan? |
|
|
gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 9749
Location: bloomfield, ct
35.02 Dollars($)
|
| Posted: Mon Oct 05, 2009 12:18 pm Post subject: |
|
|
i would have a hard time understanding the value in switching from a 3.75% rate to 5% in the first place. presumably, since you mention the mortgage insurance premium, you must not pay one now. increasing your monthly payment is a given, but it's obviously not in your favor.
now, of course, you stated that you owe $540K on a home worth $490K. why you'd get a quotation from a lender for financing at 110% of the value is not quite understandable.
is this just another in a long line of flimsy, meaningless queries from the spam brigade?
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
|
|
ajeetk
Joined: 05 Oct 2009
Posts: 2
1.58 Dollars($)
|
| Posted: Mon Oct 05, 2009 1:23 pm Post subject: reply to refinancing to new loan |
|
|
Thanks for the information. Basically, my current Bank seems be to selling the loan to some other bank (Quicken). It maybe that the current bank has lost hopes of getting any benefit in keeping the loan (as rates is pretty low 3.75).... I am paying roughly $500 less every month now as oppose to two months back... Also going back to you question about -why someone will do 110% --- I guess FHA loans do provide loan upto 125% or so. Second, they are refinancing only the first (first loan is less than the total property value).
I think I will call my current back and confirm that they are working with Quicken for load refinancing or not ! |
|
|
gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 9749
Location: bloomfield, ct
35.02 Dollars($)
|
| Posted: Mon Oct 05, 2009 1:29 pm Post subject: |
|
|
the sale of your loan should have no bearing on whether you should refinance or not.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
|
|
