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I use this forum to help purchase my mortgage in June 2008. Now I want to know if I can refinance for a lower interest rate. Here are the details:
Loan Date: June 2008
Original loan amount: 157,7533.00
Principal balance: 152,973.51
30 year fixed interest rate: 6.125%
2010 Appraised Value: 161,860
My credit score is good. My only loan debt is student loan and mortgage. Please let me know if more information is needed to determine if I can refinance for a lower interest rate.
I use this forum to help purchase my mortgage in June 2008. Now I want to know if I can refinance for a lower interest rate. Here are the details:
Loan Date: June 2008
Original loan amount: 157,7533.00
Principal balance: 152,973.51
30 year fixed interest rate: 6.125%
2010 Appraised Value: 161,860
My credit score is good. My only loan debt is student loan and mortgage. Please let me know if more information is needed to determine if I can refinance for a lower interest rate.
Thanks in advance.
If you plan on being in the house for a long time then yes.
Call your CURRENT mortgage holder and talk to them about it and see what deal they will give you.
I did one a number of years ago and they gave me a "no fee" refinance with minimal paperwork for a slightly higher interest rate than I could get with other mortgage providers.
If you can get say....4.25% on a 30 fixed your mortgage will drop by $175/mo but if you are itemizing on your taxes you will lose about $50 worth of tax dedcutions.
So, if it costs you $3,000 to refinance it will take you 3000/125 = 2 years to break even.
If you plan on being in the house for a long time then yes.
Call your CURRENT mortgage holder and talk to them about it and see what deal they will give you.
I did one a number of years ago and they gave me a "no fee" refinance with minimal paperwork for a slightly higher interest rate than I could get with other mortgage providers.
If you can get say....4.25% on a 30 fixed your mortgage will drop by $175/mo but if you are itemizing on your taxes you will lose about $50 worth of tax dedcutions.
So, if it costs you $3,000 to refinance it will take you 3000/125 = 2 years to break even.
Thanks for that input. yes, i plan on staying the house for a long time.
I wanted the lender to roll the cost of refiance into the loan if thats possible. I didnt want to pay any upfront cost.
Thanks for that input. yes, i plan on staying the house for a long time.
I wanted the lender to roll the cost of refiance into the loan if thats possible. I didnt want to pay any upfront cost.
I wasn't talking about rolling the refi cost into the loan, I was talking about seeing if you can get some sort of express refi where there are few if any costs but *maybe* pay a little higher interest rate.
They might not even be offering such a thing but thought it worth mentioning.
Ultimately you will get your available options and then sort through which ones make the most sense.
Might want to consider a 20yr. mortgage too which would keep your payment about the same (perhaps) and get you done with the loan faster.
Thanks. The 2010 Appraised Value: $161,860. I have a FHA loan.
Again,thanks
I was asking what was the reason for the appraisal this year. Seems odd you got an appraisal, as most homeowners just don't go out spending $300-400 on an appraisal, and equally as odd is the appraised value of $161,860... most appraised values are rounded to the nearest $1k, or $500.
Are you sure this wasn't a tax assessment? Tax assessments are not appraisals, and may not even be truly indicative of your home's value, as they can lag by 12-24 months. Just an FYI.
However since you have an FHA loan, even if you owe more than what your home is worth, you would still have the option of doing a streamline refinance without using the current value (no appraisal streamline refinance). If you get an appraisal, you can include the new loans closing costs into the new mortgage amount (up to 97.15% of the appraised value)... but with the no appraisal option you have to pay your closing costs out of pocket.
There are "no cost" refinances but the lower your loan amount, the higher the rate will be, because the costs are covered by generating extra profit, and larger loan amounts make more profit, so the rate doesn't have to increase as much as if it were a smaller loan amount. $150k is typically around the cutoff most lenders have for being able to do a no cost refinance.
I was asking what was the reason for the appraisal this year. Seems odd you got an appraisal, as most homeowners just don't go out spending $300-400 on an appraisal, and equally as odd is the appraised value of $161,860... most appraised values are rounded to the nearest $1k, or $500.
Are you sure this wasn't a tax assessment? Tax assessments are not appraisals, and may not even be truly indicative of your home's value, as they can lag by 12-24 months. Just an FYI.
However since you have an FHA loan, even if you owe more than what your home is worth, you would still have the option of doing a streamline refinance without using the current value (no appraisal streamline refinance). If you get an appraisal, you can include the new loans closing costs into the new mortgage amount (up to 97.15% of the appraised value)... but with the no appraisal option you have to pay your closing costs out of pocket.
There are "no cost" refinances but the lower your loan amount, the higher the rate will be, because the costs are covered by generating extra profit, and larger loan amounts make more profit, so the rate doesn't have to increase as much as if it were a smaller loan amount. $150k is typically around the cutoff most lenders have for being able to do a no cost refinance.
Thanks Shane. I got the appraisal value from the 2010 Tax Statment. Where do I find the appraisal value from? Is there a website?
I will call my mortage loan bank (Chase) and ask what refinance options do I have. I wasnt sure if I was able to refinance due to I only been in the house for 2.6 years.
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