Posted on: 06th Apr, 2009 11:09 am
what am i eligible to do - a remodification or refinance my current home mortgage?...i bought my house in march, 2008 for $104,000 with about 3% down. because of next to nothing to put down, i had to go fha and thus pay pmi of $42.10/month. my current interest rate is 6.375% with a 30 yr fixed loan. my current balance due is $102,000. with the interest rates so good right now, i want to keep the 30-year fixed loan, but try to get a lower interest rate to lower my payments. i contact my lender (jp morgan chase), who told me that i wasn't eligible for a modification, and that a refinance would not be beneficial at this point because i haven't owned the home for more that 12 months, it is an fha loan, based on the surrounding areas housing prices and since i don't have 20% equity in the house. is this true or should i be able to modify to a lower rate and would refinancing benefit me?
What would be the interest rate you would refinance at?
Between 4.875 and 5.25
Do you know what your closing cost would be to re-finance.? You need to run the numbers to see how much you would be saving.
Hi jwbird,
You will be able to refinance the mortgage only if you own the property for a year. Moreover, as you do not have 20% equity in the property, you won't be able to refinance the loan.
As far as loan modification is concerned, you will be able to take the advantage of it only if you are delinquent in your payments. You should also note that, though rates will be lowered while modification, it can increase your loan term.
You will be able to refinance the mortgage only if you own the property for a year. Moreover, as you do not have 20% equity in the property, you won't be able to refinance the loan.
As far as loan modification is concerned, you will be able to take the advantage of it only if you are delinquent in your payments. You should also note that, though rates will be lowered while modification, it can increase your loan term.
I did a loan modification in 2008 I had to put $1000 up front, my intrest rate stayed the same my monthly payment dropped $20.00 and 15 more yrs added on.
Hi Arline,
In a loan modification, the lender would give you an alternative repayment plan. In this plan, the lender would reduce your interest rate but increase your loan term in order to cover the dues. You lender has not done anything wrong.
In a loan modification, the lender would give you an alternative repayment plan. In this plan, the lender would reduce your interest rate but increase your loan term in order to cover the dues. You lender has not done anything wrong.