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Are you burdened with rising monthly payments and seeking better terms and conditions on your mortgage? Or, are you looking to consolidate your unpaid debts and get rid of them faster? All these mortgage scenarios and many more can be accomplished by mortgage refinancing. To get the basic idea on refinancing, go through these topics:

Do it yourself!



What is mortgage refinance?

With mortgage refinancing, you can replace your original mortgage with a new one with better terms and conditions but the new mortgage should be within your affordable limit. The same property that you used as collateral to secure the original mortgage is used to secure the new loan also. The new loan proceeds are utilized to pay off the existing mortgage. In case there is any remaining money after paying down the original mortgage, that amount can be used to meet other financial obligations.

Example: Suppose each of the two borrowers A and B took out mortgage loan worth of $500,000. Again, say after 5 years, both A and B paid down $250,000. So, for both these borrowers, remaining unpaid mortgage amount is $250,000.

Borrower A then took out another loan worth of $250,000, so as to repay the remaining balance on the existing mortgage. This depicts a case of simple refinance.

Borrower B then took out another loan worth of $350,000. Out of this new loan amount, B used $250,000 to pay down the original mortgage. B could use the remaining $100,000 to meet other financial obligations. This describes a case of cash out refinance.

The first scenario is a simple refinance while the second is that of a "cash-out refinance".


5 Reasons that make refinancing sensible

There are some strong reasons which make mortgage refinance a very sensible move. Here we delve upon 5 of those -
  • To reduce monthly payment:
    If the mortgage rate is lowered or if the mortgage term is extended, your monthly payment amount gets reduced. With reduced monthly payment, you can pay off your mortgage with more ease. In case the term of the loan is extended, you have to however pay more in interest during the whole life of the loan.
  • To switch from ARM to FRM:
    Fixed rate mortgage (FRM) offers you the certainty of making fixed payment over the term of the loan. Whereas, in case of adjustable rate mortgage (ARM), the monthly payment amount may rise or fall, depending upon the prevailing mortgage rate. So, in case of ARM, the monthly payment amount is not fixed; rather it is uncertain. If you are looking for certainty in payments, then you can convert your existing ARM to an FRM through mortgage refinance.
  • To repay mortgage faster:
    If you want to pay down the mortgage early, then you can shorten the term of the loan. However, here your monthly payment amount increases. Here, over the term of the loan, you save more in interest payments. You also attain property ownership early.
  • To combine two loans into one:
    If you have adequate equity in your property, you can then consolidate your first mortgage and the second mortgage into a single mortgage. The main advantage of this type of consolidation is that the monthly payment on the single loan is less than the combined payments on the 1st mortgage and the 2nd mortgage.
  • To pay off high interest debts:
    If you have sufficient equity in your home, you can opt for a cash out refinance. You can use the remaining money to pay high interest debts such as credit card bills, car loans, installment loans etc.


What is the best time to refinance?

You may not always be eligible for refinancing or the situation may not always be conducive for refinancing. You have to time your move correctly so as to reap its benefits. You need to check out these crucial things carefully before applying for mortgage refinancing -
  • If you have built up equity:
    You may be eligible for refinancing when you have built up equity of at least 10% in your home. However, for mortgages owned by Fannie Mae, the equity requirement is 5%. It is possible to get the refinance approval even with less than 5% equity, but in that case you may have to pay a certain sum of money to compensate for the deficiency in equity.
  • If the refinance rate is sufficiently low:
    If the current mortgage rate is sufficiently lower than the rate on the original mortgage, then it may be wise to opt for refinancing. Here, you need to follow the 2% Rule. As per the 2% Rule, refinancing is beneficial for you in case the refinance rate is 2% lower than the rate on the original loan. Here, the savings accrued from low rate outweigh the costs of the new loan after a certain period of time, which is called the break-even period. To get benefits of refinance, you have to stay in the house at least till the break-even period.
  • If you have removed negative items and paid off debts:
    Before plunging into refinancing, obtain your credit report from the credit bureaus and review it carefully. If you find some negative items such as collections or late payments, dispute those items immediately and get those items removed from your report. Prior to refinancing, pay down as much debts as possible. All these will work in your favor in getting the refinance approval.
  • If you have no late payments in past 1 year:
    If you have history of late payments in the past 1 year, then your refinance appeal may be rejected. So, before refinancing, make sure you don't have any late payments in the past 1 year.


When refinancing is not a good idea?

Despite the fact that refinance has several benefits, it is not always a good idea to go for mortgage refinancing. There are some cases when your refinance appeal is rejected by the lender or it may not fetch the desired returns. Here are some cases when refinancing is not a good idea at all-
  • If the property value has declined sharply:
    If the value of your property has declined appreciably, the remaining balance on your original loan may be higher than the refinance loan amount. In other words, with the new loan proceeds, you won't be able to pay down the original mortgage loan.
  • If you have already used up your equity:
    Your equity is the key to get approved for refinancing. If you have already used up your equity by taking out a home equity loan (HEL) or a home equity line of credit (HELOC), then going for refinancing would not be a good idea.
  • If you have only a few years left on the existing loan:
    It does not make good sense to go for refinancing if you have only a few years left on your existing loan. It is not rational to refinance the loan which you have almost paid off. If you have almost paid down a 30-year fixed rate mortgage, then it is unwise to opt for refinancing. After all, refinancing is just like taking out a new loan and all the costs associated with taking out a fresh loan are applicable here too.
If you have the right reasons and if the time is right, then you can surely seek for mortgage refinance. However, before making the final decision, do the necessary research, take quotes from different lenders, make a comparative analysis and choose your lender.
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Refinance a mortgage at the right time and for right reasons.
adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mrstal,

If there is equity in the property and if your friend has a good income and credit score, she can refinance the loan and lower the interest rate. In case, there's no equity in the property, then she can apply for a mortgage modification with her lender.

HI Paul,

Your query has been replied to in the given page:
http://www.mortgagefit.com/postdeal/about39746.html#168659

Take a look at it. Hope it helps you.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I currently have a 30 yr. mortgage for $154,000. I have over 28,000 credit card debt plus school loans and hospital bills. I have enough equity to refi FHA and get 25K cash back. BUT then my loan would be $182,500 and I would pay the additional $73/mo for 5 yrs. We are totally cash-strapped!! Paying bills each month is awful. (this debt load is accumulated from the past 25 yrs) we are 55/59 yrs. We have no savings or other $. We do currently both have jobs paying about $35K/yr. ea. Is this smart to do? We have been in our home (smaller) just 4 months. If we did this we would only then have auto, hospital and school loans left to pay. Our scores are high 600's. We have been approved for the FHA. Help!!! Should we do it? I also don't want to risk loosing our home--and think it will slowly continue to appreciate in value.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Will NACA help me me by paying off my reversed mortgage and getting a low interest rate mortgage of $350,000. I took the reversed mortgage to pay off mortgage and other bills but do not want my home in hock for more than $650,000.

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Elaine,

As you are cash strapped and as you've equity in your property, it would be a good option to refinance the mortgage and get a cash out to pay off your credit card debts. However, you should check out whether or not you would be able to pay off the additional amount of $73 each month for 5 years. If you can afford that amount, then you can go ahead with the refinance.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i think my credit is ok. but i'm fully disabled, so on a fixed income. getting divorced, and trying to keep manufactured home where i live. wife is being very uncooperative. will my disability help me get a refi at a good % rate?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi anonymous,

Your disability income may help you in getting a mortgage refinance if you have a good debt to income ratio. Moreover, you need to meet the other required criteria of the lender in order to secure the refinance.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello, My name is John Jackson and I would like to talk to you about refinance my home for a better interest rate. Also try to lower my payments. Thank You..

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi John,

If you've equity in your property, then you would be able to refinance your mortgage. Apart from the equity in your property, you should have excellent credit scores and stable income in order to qualify for a refinance. You can contact your present lender or you can even speak to the other lenders of your locality to refinance the home loan.

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netherton's picture
netherton | Joined: June 17, 2010 10:56 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi John,

What state are you located in? What is your home worth and what do you owe on it?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am going through a very nasty divorce. My soon-to-be-ex and I bought the house for 280,600 but put down 132,000 on it and now just owe 121,000 on a 25 year loan. I am trying to find a way to continue to live in it and afford the payments which are around $1800. I have poor credit - is there any way I could obtain a loan or refinance it (co-signer? or ?). Our house is valued at 360,000. If things go my way and I get custody and the house, my child support would be around $750/mos. added to my monthly income of $3040 (after taxes and insurance).

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sljmoon,

As you've equity in the property, you will be able to qualify for a refinance with the help of a co-signer. You can request any of your friends or relatives to cosign for you. However, that person needs to have a good credit score.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I have ever taken cash out of my house and I have 2 loans, can I do a rate and term refinance to do a loan......i'm not in TX by the way!!!

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rowdy,

Though you've taken cash out loan, if you've equity in your property, then you'll be able to get a refinance. Apart from this, you need to satisfy the credit score and income requirements of the lender.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Are prices for houses returning to normal in your area?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i signed a qweek clame to my ex wife, how i can forse her to remove my name from the loan

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tn,

You cannot force your ex-wife to remove your name from the mortgage. You need to negotiate with her and convince her to refinance the loan so that your name is removed from the mortgage.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am 5 years into my current mortgage, so more of my monthly payment is going towards principal not interest and paying off loan amount, if I refinance will more of my payments be applied to intrest rather than principal?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you go for an interest only loan, then most of your payment would go towards paying off the mortgage interest and not the principal amount.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have 7 years left on a 15yr mortgage loan. I owe about 70000 on a 110000 loan....my current interest rate is 5 and 7/8 and they are now down to 4plus %....could take payment down but my thought is that right now most of my payment each month is on principal and not interest....so is it worth it

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi ekazor,

How long are you planning to stay in the property? If you want to stay in the property for around 8-10 years, then it would be a good option to refinance the loan. This will help you in offsetting the closing costs that you pay while you refinance the loan.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I bought the house before marriage and now want to refinance. Does it require adding my wife to the title and mortgage? I want to keep this property before marriage as separate since the house was purchased with the help other people not associated with my wife.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Jessica, Would I have any chance of refinancing? My first loan is $142,000, at 7.25%, and a bad second loan of $36,000 at 13.1%. My house is worth about $150,000, and I have never missed a payment. I know rates are much lower, and if I can make high payments, would an institute give me a chance at lower payments? Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a fixed rate mortgage in the amount of 480,000 @ 5.375 on a home valued @ 750,000. I am considering refinancing into a 1st of 417,000 @ 4.625 and a 2nd @ 5.125 my credit is excellent and I will have not trouble qualifying for a refinance. Is this a good idea?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi anonymous,

If you have the required credit score and equity and meet the other requirements of the lender, then you'll be able to refinance the loan alone. It is not mandatory for you to add your wife to the property as well as the mortgage.

Hi Tommie,

As you don't have equity in your property, it won't be possible for you to refinance the loan. You can contact your lender and go for the option of "cash in refinancing" where you need to put extra money towards the loan in order to build equity in your property and then get a loan at a lower interest rate.

Hi k,

You will be liable for paying two mortgages after you refinance the loan. If you can afford the payments, then you can go ahead with the deal. As you have equity in your property and your credit is excellent, you won't face any issues in getting a refinance.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Greetings:
Is it worth my while to refinace an existing morgage balance of $38,000 at 7%fixed with 8 years left on the morgage to a 4%fixed for 10 years on the same balance?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi gardenbug,

Compared to 7% interest rate that you're paying now, 4% is quite a low rate. Thus, it would be a good option to refinance the loan though the term of the loan will get increased by 2 years. However, you should note that while you refinance the loan, you'll be liable for paying the closing costs. Thus, you'll be able to offset the closing costs only if you plan to stay in the property for a long period of time.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

a couple years ago we took out a moderate [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url]. Interest rates are now enough to consider refinancing our existing mortgage which has less than 10 years left on it. Does it make sense to merge the 2 loans back together and refinance? If not, what are the drawbacks?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It will be a good option to merge both the loans into one single loan. This will make you liable for paying a single monthly mortgage payment. However, you should refinance the loans only if you're planning to stay in the property for a longer period of time. This will help you in offsetting the closing costs that you pay while refinancing the loan.

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jenny.smith's picture
jenny.smith | Joined: July 20, 2010 05:56 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

When you refinance, you can replace the existing mortgage, which is more favorable rates and terms that allow you to cope better with the monthly payments without a fight. Your house is used as collateral, and that this amount may not exceed the current balance you have.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, I would like to refinance my mortgage from a 30 to 15 year. Straight Refi, with no additional cash out. Where is the best place to start? My current lienholder? A mortgage broker? or somewhere else. Thanks, Lisa

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I already have a 6% mortgage loan rate, would I benifit if I refinanced at a rate of 4.75% ?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Private mortgage insurance, often referred to as PMI, is insurance that lenders require borrowers to pay for when they get a mortgage

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been trying to assume the loan from the lender for my property in an effort to remove my ex-husbands name from the loan and the deed. Because the intresest rate is high (6.5%), i am out of the debt to income bracket by about 2%. The lender will not budge on this. I have been told that the two of us together can apply for a streamline refinance to lower the interest rate, after which i could then immediately apply for the assumption once again with the lower interest rate/lower payments since i would then be within the debt to income bracket requirements. Is there any period of time that i would have to wait in between transactions?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as I know, you cannot immediately refinance a loan. You need to wait for 10-12 months in order to refinance the loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a second home in Las Vegas in which my son and daughter live and pay the mortgage but the house is in my name. I have never collected any rent on this home. I would like to refinance the loan on this house so as to reduce the monthly payments. I currently have a 30 year fixed loan at 6.5%. I have excellent credit. Should I refinance now? Are interest rates on a second home higher?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rabin,

Do you have equity in your property? Unless you've equity in your property, it won't be possible for you to refinance the loan though you've excellent credit. If you meet the required criteria of the lender, you can go ahead and refinance the loan. As far as I know, the mortgage interest rates for second homes are similar to that of primary homes.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello: I am in the process of looking around for a refinance option. I currently have a 30 yr FHA loan originated in 06/2007. I do not have any late payments. I want to know if there are opportuinities to refinance my loan to a lower rate/lower term without an appraisal?
cheers

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi ram!

Welcome to forums!

As far as I know, the lender will want to appraise the property in order to know whether or not there is equity in it. You won't be able to refinance the loan without a property appraisal.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have heard about the FHA streamline refiance option. This option says it does not need an appraisal....does this mean even with a FHA streamline I will need an appraisal?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Dear Jessica,
I am a veteran and I want refinance my existing conventional loan to use my Va LOAN TO DO A RATE TERM REFINANCAE, BUT THE PROPERTY VALUE IS A LITTLE LESS THAN MY PAYOFF.(ABOUT 2900.00) THE REFINANCE OF CLOSING COST AND ALL IS ABOUT $8500.00 OVER THE APPRAISAED VALUE. WILL MY VA LOAN COVER THAT AMOUNT?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am having trouble deciding whether I should refinance my mortgage. I owe $309,000 and have 25 years left on a 30 year mortgage. My interest rate is 5.25 and I pay PMI. I don't know the value of my house but am guessing anywhere between $320,000-$350,000. I think I could get at least $340,000. My dilemma is should I refinance to a 20 year fixed at 4.125 or 10/1 ARM 3.875, or should i just stay with my current mortgage? I do not have 20% equity because of the depreciation of my home's value. I will be in this house at least another 5 years. Any help would be appreciated. Sorry for the long post.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi RAM,

In certain cases, the lenders can offer a FHA streamline loan without appraisal of the property. However, it would be completely the lender's discretion whether or not he would offer you a loan without appraisal.

Hi MOE,

If you don't have equity in your property, you won't be able to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url] refinance. I don't think a VA loan will cover the closing costs and other fees.

Hi Joe,

Your query has been replied to in the given page:
http://www.mortgagefit.com/refinance/depreciation-homevalue.html

Take a look at it. Hope it helps you.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a low interest 4.375 on my first with a balance of about 106K...15 yr. with about 8yrs. left....also have a second @ 6.875 with a 40K balance and about 10 yrs left....should I refinance? Don't want ANYTHING over 15 yrs. Current payment on first..monthly is about $1580..taxes and everything...the second is about $440.....

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Wildcat!

Welcome to forums!

You can refinance both the loans into one and go for fixed rate 15 year mortgage. If you're planning to live in the property for a long period of time (around 8-10 years), then it would be a good option to get the loan refinanced.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Uessica, I own a home in Idaho and I am wondering if I could finance it to pay off other bills that I need to pay?

Kindest regards,

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can i claim the first time home buyer credit on my 2009 taxes if i only refinanced my mortgage. thank you

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

CAN I GET THE CREDIT IF I REFINANCED MY MORTGAGE

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hey. I have only owned my home for two years. My house appraises for $154000, and I still owe $143000. I got my loan at a 5.875% fixed for 30 years. I see that the national average is now 4.5ish. Would it be worth it for my to try to refinance? I have friends who have already refinanced, and say it was a great idea. However, the research I have been doing doesn't necessarily agree. I see that according to the payment calculators I could save a good bit, but I am unsure of all of the costs of refinancing. I am also unsure if I will qualify for those low rates. I just have no idea what to expect. And I don't know if I can trust my bank.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Unknown,

If you have the required credit score and a stable financial situation, then you would be able to get a mortgage on your free and clear property.

Welcome nickieyes,

You won't be able to get the first time homebuyer's tax credit if you refinance the loan. You won't be considered as a first time homebuyer in this case.

Welcome anonymous,

As there is equity in your property, you'll be able to get a mortgage refinance and take advantage of the lower rates. If you've a very high interest rate, then it's a good option to refinance the loan.

However, if you don't plan to stay in the property for a long time, then you shouldn't go for a refinance. You won't be able to offset the closing costs that you pay if you leave the property within the next 3-4 years.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have 7 years left on my mortgage. i'm currently two months behind. my credit is poor and so is my income. what do you suggest?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

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