refinancing questions (payment, interest, 5%, house)

[vpcats]

Question. Should I refinance? Will rates drop much lower to make a difference, considering any closing costs?

I bought my house exactly 5 years ago. Have 30 yr fixed traditional at 5.625%. Would it make any sense for me to try to refinance, maybe even to get some cash out? Right now, I have about $60K equity, even if bank would use purchase price from 5 yrs ago.

[renriq02]

what would be the point? you have a good rate.

nowadays you cant just refinance...you have to show that it's going to benefit the customer.

most lenders now require a 'benefits statement'

Originally Posted by vpcats

Question. Should I refinance? Will rates drop much lower to make a difference, considering any closing costs?

I bought my house exactly 5 years ago. Have 30 yr fixed traditional at 5.625%. Would it make any sense for me to try to refinance, maybe even to get some cash out? Right now, I have about $60K equity, even if bank would use purchase price from 5 yrs ago.

[vpcats]

Originally Posted by banker0679

what would be the point? you have a good rate.

nowadays you cant just refinance...you have to show that it's going to benefit the customer.

most lenders now require a 'benefits statement'

Well, that's my point. Is there a point? I'd love to have a much lower interest rate and wouldn't that give me (the customer) a benefit?

[renriq02]

if you get a 30yr fixed...you will get no lower than 5.5% w/out paying points.
There is no benefit in that....and ifyou take out cash...there maybe price hits which can take you to 5.75-5.875

Originally Posted by vpcats

Well, that's my point. Is there a point? I'd love to have a much lower interest rate and wouldn't that give me (the customer) a benefit?

[kmurali70]

Originally Posted by TimtheGuy

The market value of your house therefore is $280k not $345k and that is what the lenders will use.

Tim,
so what if i do a new appraisal and they say the value of the home is 350k, will i be able to refinance the home at 80% of 350k and take the cash out.
or
am i going to be stuck with 280k for the rest of my life as a baseline to refi my home.
what is this 1 year waiting period to refin. Do I have to wait for 1 year before i can refi or have a new appraisal ?
thx

[renriq02]

6months for some lenders
1yr for most lenders.

that is the time frame

Originally Posted by kmurali70

Tim,
so what if i do a new appraisal and they say the value of the home is 350k, will i be able to refinance the home at 80% of 350k and take the cash out.
or
am i going to be stuck with 280k for the rest of my life as a baseline to refi my home.
what is this 1 year waiting period to refin. Do I have to wait for 1 year before i can refi or have a new appraisal ?
thx

[TimtheGuy]

Originally Posted by kmurali70

Tim,
so what if i do a new appraisal and they say the value of the home is 350k, will i be able to refinance the home at 80% of 350k and take the cash out. No.
or
am i going to be stuck with 280k for the rest of my life as a baseline to refi my home. No.
what is this 1 year waiting period to refin. Do I have to wait for 1 year before i can refi or have a new appraisal ?
thx

It is not a 1 yr. wait to refinance, it is a 1 yr. wait before the lender will allow you to use a value higher than the purchase price.

If your house just sold for $280k there is virtually no way it is now worth $350k. Basically the lender is "not buying it". If it just sold for $280k then the value must be $280k.

[pfw]

Another question on refi...my house is currently for sale and while I'd rather sell the house I'm not entirely opposed to refinancing and staying. We've been told by multiple lenders that the house will need to be off the market for anywhere from 30-90 days before trying to refinance. Another guy has said that it doesn't matter if the house is on the market that he can get it done. Does anyone know if this 30-90 rule is true across the board or only with certain lenders?

Oh yeah - in case it matters this is for a house in TX.

[TimtheGuy]

Originally Posted by pfw

Another question on refi...my house is currently for sale and while I'd rather sell the house I'm not entirely opposed to refinancing and staying. We've been told by multiple lenders that the house will need to be off the market for anywhere from 30-90 days before trying to refinance. Another guy has said that it doesn't matter if the house is on the market that he can get it done. Does anyone know if this 30-90 rule is true across the board or only with certain lenders?

Oh yeah - in case it matters this is for a house in TX.

Across the board, but there may be some obscure option(s). I for example would not have an option for you.

[renriq02]

Hard money loans may not require to be off the market but it will be an interest rate over 10%

You can take it off the market, and refinance with a broker who uses Homecomings. They require only 1 day off the market. Rates aren't the best either.