Posted on: 24th Feb, 2009 10:57 am
hi , here is my case: i bought an apartment as an investment property almost 5 years ago, and i was looking to refinance the property to a fixed rate (currently i have a 5year arm). i am unable to find a good deal or a good answer. some of the lenders are asking for 30% of the property value in order to refinance other are asking for 10% rate. my current lender told that they don’t do mortgage/refinance anymore.
here are the details:
- current loan balance is 94000
- current estimated value 110000 (from zillow.com)
- property is located in il 60061
- i currently have a 5 year arm that will expire next year in january
- my credit score should be over 750 (did not check in the last 6 month or so)
what are my options to refinance for a fixed rate for 15 or 20 years.
do i really need to have 30% down payment from the value of the house?
any advise or help will be good.
thanks.
here are the details:
- current loan balance is 94000
- current estimated value 110000 (from zillow.com)
- property is located in il 60061
- i currently have a 5 year arm that will expire next year in january
- my credit score should be over 750 (did not check in the last 6 month or so)
what are my options to refinance for a fixed rate for 15 or 20 years.
do i really need to have 30% down payment from the value of the house?
any advise or help will be good.
thanks.
Welcome cass,
It would be good if you could appraise your property from a property appraiser who will help you in estimating the correct value of the property. A proper appraisal of the property will help you in getting a better refinance options.
Did the lender give you any reason as to why they are asking for a 30% down? As far as I know, borrowers are required to pay 20% down while taking a mortgage.
You can speak to the lenders of this community and seek a no obligation free consultation from this. This will help you in knowing the kind of rates you can receive.
It would be good if you could appraise your property from a property appraiser who will help you in estimating the correct value of the property. A proper appraisal of the property will help you in getting a better refinance options.
Did the lender give you any reason as to why they are asking for a 30% down? As far as I know, borrowers are required to pay 20% down while taking a mortgage.
You can speak to the lenders of this community and seek a no obligation free consultation from this. This will help you in knowing the kind of rates you can receive.
Most lenders are maxing NOO properties at 75% LTV.
Cass
I am interested in finding out what your current rate is and what are the details of your rate adjustment after the fifth year?
I would tread cautiously when it comes to refinancing that loan. Based upon your scenario, your new rate on a refinance potentially could be higher than your current rate. In addition, your rate after the fifth year could also decline....especially if this economy continues to struggle.
I am interested in finding out what your current rate is and what are the details of your rate adjustment after the fifth year?
I would tread cautiously when it comes to refinancing that loan. Based upon your scenario, your new rate on a refinance potentially could be higher than your current rate. In addition, your rate after the fifth year could also decline....especially if this economy continues to struggle.
