Can she refinance? (loans, credit card, mortgage rates, equity)

[Happy2222]

Originally Posted by coolricks

I have a similar question about refi:

I bought a home and closed on Nov/13/07, with $0 down, but builder paid closing cost and they put down 3% for down payment, interest at 6.375 fixed 30 years (FHA).

I keep hearing about interest going down so my question is : would it be wise to do a refi now? if not how long to wait? it is a new house and cost 299,960, monthly payment of 2280 with P&I and PMI and taxes included.

Thanks!

So you have a 290+ K mortgage. I hope you are making good money. Upwards of 100K a year. I cannot think of paying those amounts every month.

Good luck.

Refi now? Not gonna happen, you will need closing costs and quite frankly the value of your home maybe even LESS than what you owe RIGHT NOW!

[renriq02]

You may obtain a rate of 5.875% or lower BUT you will need to bring cash to closing.

They will use the previous appraisal....and you can only refinance up to 97.75% of the value. (Rate/Term) In your case it will be a streamline refinance, but you will need to wait about 6months to use a new appraised value.

Originally Posted by coolricks

I have a similar question about refi:

I bought a home and closed on Nov/13/07, with $0 down, but builder paid closing cost and they put down 3% for down payment, interest at 6.375 fixed 30 years (FHA).

I keep hearing about interest going down so my question is : would it be wise to do a refi now? if not how long to wait? it is a new house and cost 299,960, monthly payment of 2280 with P&I and PMI and taxes included.

Thanks!

[Happy2222]

Originally Posted by banker0679

You may obtain a rate of 5.875% or lower BUT you will need to bring cash to closing.

They will use the previous appraisal....and you can only refinance up to 97.75% of the value. (Rate/Term) In your case it will be a streamline refinance, but you will need to wait about 6months to use a new appraised value.

6 months from now it could appraise at less than what they owe in this market.

You buy now you stay put. Hope you can afford the payments.

[renriq02]

Depends on the market....Charlotte has been having good appreciation with homes

Originally Posted by Happy2222

6 months from now it could appraise at less than what they owe in this market.

You buy now you stay put. Hope you can afford the payments.

[Happy2222]

Originally Posted by banker0679

Depends on the market....Charlotte has been having good appreciation with homes

?????

I am in the Raleigh area and its real slow, we have a fantastic new place and it wouldn't sell for what I paid for it today. Nope maybe 15K less. Bought in july 06 334K I have homes on the street listed at 329 and 15 NEW homes in the neighborhood all under 330K

I wish I had your happy response.

[renriq02]

Also, every neighborhood is different.

My BIL owns a house there, and bought it for 190k. Home is worth 250k, and he's almost done selling it for that price. (time range 1.5yrs)

One thing is to never buy a new home with ALL of the options. Those options may not have been chosen by your neighbors, and usually are a lot more expensive if done by the builder.

Originally Posted by Happy2222

?????

I am in the Raleigh area and its real slow, we have a fantastic new place and it wouldn't sell for what I paid for it today. Nope maybe 15K less. Bought in july 06 334K I have homes on the street listed at 329 and 15 NEW homes in the neighborhood all under 330K

I wish I had your happy response.

[AnthonyB]

Originally Posted by jco

I was talking to a friend who purchased a home this year with nothing down. She has a 7.5% rate, interest only for TEN YEARS (never heard of this before) and then her payment goes way up. She doesn't have any money to put down on closing costs, but she has good credit. Do you think she can refinance a lower rate without anything down? I don't know what to advise her to do, but her payment right now is too high.

What are these lenders thinking??? Isn't this why we have so many foreclosures?

I have to ask the question - What was your Friend thinking?

If interest only is already budget busting and she has no cash, what happens if she suffers some kind of crisis? What happens if she wants to move, she has no equity? Is she just hoping that she will have an income explosion?

[coolricks]

Originally Posted by Happy2222

So you have a 290+ K mortgage. I hope you are making good money. Upwards of 100K a year. I cannot think of paying those amounts every month.

I'm making a bit less than that, the reason is to get a better interest rate, thats all. The House was appraised at 300,000 (but comparables are at 340+) builder put 3% down so the loan with PMI came down at 294960.

Just wanted to know if a refi was worth it, If I need to bring cash how much is required and how low should I be looking at? credit at 691,678,650.

Thanks.

[renriq02]

5.75%-5.875% for today. rates are starting to go up.

Depends on the state you're in....but I would say btwn 2.5-3.5%

Originally Posted by coolricks

I'm making a bit less than that, the reason is to get a better interest rate, thats all. The House was appraised at 300,000 (but comparables are at 340+) builder put 3% down so the loan with PMI came down at 294960.

Just wanted to know if a refi was worth it, If I need to bring cash how much is required and how low should I be looking at? credit at 691,678,650.

Thanks.

[ayannaaaliyah]

Originally Posted by Happy2222

?????

I am in the Raleigh area and its real slow, we have a fantastic new place and it wouldn't sell for what I paid for it today. Nope maybe 15K less. Bought in july 06 334K I have homes on the street listed at 329 and 15 NEW homes in the neighborhood all under 330K

I wish I had your happy response.

That's the problem with buying into underdeveloped communities. I think a lot of people are in that situation where they're in homes with a mortgage that exceeds what all the other newer properties are selling for. That sucks!