Please help: Should I refinance? (loan, interest rate, credit, rate)

[oneone10]

Hi All,

I am hoping I can get some advice from the board. So here is my situation:

Purchase Date Dec 26, 2007 Loan Type
80/20 Interest Rate 7.000% Type 30 year ARM (15 yr fixed)



I don't plan on being in the place for longer than 7 yrs hence why I did the 30 ARM with 15yrs fixed. I am 23 yrs old & my credit is good. So what do you advice...should I keep what I have or refinance & capture possible lower rates with the market condition? TIA

[renriq02]

If you're at 100LTV then it would be hard to finance this home.

You will need to pay out of pocket closing costs.
Most lenders will use the purchase price as the appraised value if you owned the home less than 6months. You will not be able to roll in the closing costs since you're at 100LTV.

FHA allows up to 97.75% rate/term refinancing.
MyCommunity allows up to 100% rate/term refinancing but the rates are a lot higher than FHA

Originally Posted by oneone10

Hi All,

I am hoping I can get some advice from the board. So here is my situation:

Purchase Date Dec 26, 2007 Loan Type
80/20 Interest Rate 7.000% Type 30 year ARM (15 yr fixed)



I don't plan on being in the place for longer than 7 yrs hence why I did the 30 ARM with 15yrs fixed. I am 23 yrs old & my credit is good. So what do you advice...should I keep what I have or refinance & capture possible lower rates with the market condition? TIA

[Daddys///M3]

Originally Posted by oneone10

Hi All,

I am hoping I can get some advice from the board. So here is my situation:

Purchase Date Dec 26, 2007 Loan Type
80/20 Interest Rate 7.000% Type 30 year ARM (15 yr fixed)



I don't plan on being in the place for longer than 7 yrs hence why I did the 30 ARM with 15yrs fixed. I am 23 yrs old & my credit is good. So what do you advice...should I keep what I have or refinance & capture possible lower rates with the market condition? TIA

Not gonna happen. You purchased at 100% combined loan to value less than 4 months ago, so equity is non-existant. You were given 7% at the time, rates have not gotten that much better than 12/07, which leads me to believe that it has more to do with your credit, your doc type, and your high CLTV. I can't imagine your credit has gotten much better in 4 months either.

Also, there is no such thing as a 30 yr ARM. Maybe you meant a 30 yr fixed w/ a 15 yr interest only option? Do yourself a favor and educate yourself on what kind of loan you have, so you don't run into any surprises down the road. Read your closing package, all the info you need is in there.