Jump to content

Home Refinance Tips?


Recommended Posts

Do your research and see how much your home will appraise for before attempting to refinance, I had a neighbor get bit big time because the house appraised for less than his original loan was for. Most home values are down to some degree right now which you have to be cautious about.

Link to comment
Share on other sites

Do your research and see how much your home will appraise for before attempting to refinance, I had a neighbor get bit big time because the house appraised for less than his original loan was for. Most home values are down to some degree right now which you have to be cautious about.

If this is the case can you back out of the refinance opting to keep your old mortgage? :huh: :huh:

Link to comment
Share on other sites

If this is the case can you back out of the refinance opting to keep your old mortgage? :huh: :huh:
Yes, you can.

Generally speaking, if your rate is above 6.3% or so, you should look into it. Any broker you talk to should be able to pull recent ales for comparable homes ('comps') in your area to give you a general idea of what they think your home might appraise for.

Aside from that, just get an estimate of the total closing costs and see how long it would take you to pay them off using the money you saved on your mortgage and see if you plan on being in the house that long.

If closing costs are $4K and you save $100 per month on your mortgage, then it would take you 40 months to pay for the cost of the refi. If you plan on being in the house much longer than 40 months, then it's a good idea. If not, it's not.

Link to comment
Share on other sites

Find out if your loan is Fannie or Freddie. 90% of the loans are one or the other. They both have 800 numbers for these calls. If it is, you're elgible for some of that Obama money. You don't even need the house to appraise at loan value. Interest rates are below 5% right now. Do it.

As far as closing costs you might be able to roll that into the loan which could be good if you don't plan on staying in the house very long.

Link to comment
Share on other sites

Find out if your loan is Fannie or Freddie. 90% of the loans are one or the other. They both have 800 numbers for these calls. If it is, you're elgible for some of that Obama money. You don't even need the house to appraise at loan value. Interest rates are below 5% right now. Do it.

It is neither it is a VA Home Loan.

Link to comment
Share on other sites

Yes, you can.

Generally speaking, if your rate is above 6.3% or so, you should look into it. Any broker you talk to should be able to pull recent ales for comparable homes ('comps') in your area to give you a general idea of what they think your home might appraise for.

Aside from that, just get an estimate of the total closing costs and see how long it would take you to pay them off using the money you saved on your mortgage and see if you plan on being in the house that long.

If closing costs are $4K and you save $100 per month on your mortgage, then it would take you 40 months to pay for the cost of the refi. If you plan on being in the house much longer than 40 months, then it's a good idea. If not, it's not.

From my current mortgage company,

Interest Rate

Current 6%

New 4.75%

Mortgage Savings

Over $100.00

Closing Cost

About $6,500.00 rolled into the new mortgage.

Not sure about this one my option are still open. My mortgage lady told me this is not a traditional refinance so an appraisal would not be necessary.

Link to comment
Share on other sites

From my current mortgage company,

Interest Rate

Current 6%

New 4.75%

Mortgage Savings

Over $100.00

Closing Cost

About $6,500.00 rolled into the new mortgage.

Not sure about this one my option are still open. My mortgage lady told me this is not a traditional refinance so an appraisal would not be necessary.

If it's fixed I'd say jump on it.
Link to comment
Share on other sites

Yes fixed traditional 30 year mortgage.
An analyst would probably say weigh the cost of rolling the closing costs into the loan over 30 years and compare the savings. If you can invest the mortgage savings in something not too risky I'd say it's a no brainer. If you can't it could be risky if you plan to be there for a long time. Any analysts out there?
Link to comment
Share on other sites

An analyst would probably say weigh the cost of rolling the closing costs into the loan over 30 years and compare the savings. If you can invest the mortgage savings in something not too risky I'd say it's a no brainer. If you can't it could be risky if you plan to be there for a long time. Any analysts out there?

I am looking for a better deal but this may be the best I can get.

Link to comment
Share on other sites

No points bought, $1170.00.

$215,000 mortgage, give or take a few thousand? The closing costs just seem absurd. I refinanced with BofA in March last year, and our closing costs were less than $2000. Our interest rate dropped a full $1.25% and we recouped the savings in less than a year. Talk about a no brainer...

Link to comment
Share on other sites

$215,000 mortgage, give or take a few thousand? The closing costs just seem absurd. I refinanced with BofA in March last year, and our closing costs were less than $2000. Our interest rate dropped a full $1.25% and we recouped the savings in less than a year. Talk about a no brainer...

****, $2000, I may need to re look at those closing cost. :huh: :huh: $215,000 are you asking or is that what you paid? :huh: :huh:

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...