Posted on: 16th Dec, 2010 09:15 am
i own a condo in which the original loan was for $162,500 with an arm at 6%. the amt now owed is $156,900. we had a previous appraisal which devalued our condo to $158,000. with avg interest rates being in the mid-upper 4% would it be wise to refinance even if the appraised value is less than our original purchase price?
30 year fixed rates today are probably more like 5.25% neck of the woods.
If value is less than the mortgage, only way to refinance is if your current loan is owned by Fannie Mae or Freddie Mac. Is it? Call your lender and ask.
If it is, the decision to refinance is based pretty much on how much you want a fixed rate mortgage at lower than your current rate before taking the chance that when the ARM rate starts adjusting, it will at some point be higher than 6%
If value is less than the mortgage, only way to refinance is if your current loan is owned by Fannie Mae or Freddie Mac. Is it? Call your lender and ask.
If it is, the decision to refinance is based pretty much on how much you want a fixed rate mortgage at lower than your current rate before taking the chance that when the ARM rate starts adjusting, it will at some point be higher than 6%