Posted on: 28th Nov, 2009 12:59 am
hello everyone,
i purchased a home two years ago with a 30 year fixed rate mortgage at 6.5% for $275k. given the fact that interest rates have fallen to about 5%, my family and i have been trying to determine if this is a good time to refinance.
we currently owe $212k on the mortgage plus $30k on the home equity loan. the home's value, according to zillow.com and chase's home valuation tool has reduced in value to $254k. if the mortgage plus home equity are added together, we owe a total of $242k. so while we are not under water, we are close. we also have excellent credit.
do you think we will be able to find a company to refinance our home? we will either be looking for a 20 or 25 year mortgage through the refinancing. your thoughts are sincerely appreciated. please feel free to ask follow up questions.
i purchased a home two years ago with a 30 year fixed rate mortgage at 6.5% for $275k. given the fact that interest rates have fallen to about 5%, my family and i have been trying to determine if this is a good time to refinance.
we currently owe $212k on the mortgage plus $30k on the home equity loan. the home's value, according to zillow.com and chase's home valuation tool has reduced in value to $254k. if the mortgage plus home equity are added together, we owe a total of $242k. so while we are not under water, we are close. we also have excellent credit.
do you think we will be able to find a company to refinance our home? we will either be looking for a 20 or 25 year mortgage through the refinancing. your thoughts are sincerely appreciated. please feel free to ask follow up questions.
>>Do you think we will be able to find a company to refinance our home?
Yes - with excellent credit you should be able to do an FHA rate and term refinance.
Yes - with excellent credit you should be able to do an FHA rate and term refinance.
Raymond, thank you for the response. With a FHA refinance, we will be required to get PMI, correct? Wouldn't that negate the value of refinancing due to this added cost?
>>we will be required to get PMI
Yes. FHA may or may not make sense for you, but it's a potential solution and you should be reviewing all solutions. Your interest rate will go down, saving you money but you'll have PMI, costing you money. Find a Loan Officer that knows how to use "Mortgage Coach". That's a software program that'll compare mortgage programs side-by-side, so you'll be able to make an informed decision.
Yes. FHA may or may not make sense for you, but it's a potential solution and you should be reviewing all solutions. Your interest rate will go down, saving you money but you'll have PMI, costing you money. Find a Loan Officer that knows how to use "Mortgage Coach". That's a software program that'll compare mortgage programs side-by-side, so you'll be able to make an informed decision.
Yeah FHA may not make sense for him due to the LTV level. However, he should explore all options..
"http://www.dreamhomefinancing.com/FHA.aspx"
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"http://www.dreamhomefinancing.com/FHA.aspx"
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