Demetrius Dew Posted April 7, 2009 Share Posted April 7, 2009 Looking to refinance my home, interest rate is to high, does anyone have any tips that they could share? :huh: Quote Link to comment Share on other sites More sharing options...
aerosmith67 Posted April 7, 2009 Share Posted April 7, 2009 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. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 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: Quote Link to comment Share on other sites More sharing options...
eatcorn Posted April 7, 2009 Share Posted April 7, 2009 If this is the case can you back out of the refinance opting to keep your old mortgage? :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. Quote Link to comment Share on other sites More sharing options...
FalconFanSince1970 Posted April 7, 2009 Share Posted April 7, 2009 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. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 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. Quote Link to comment Share on other sites More sharing options...
Cism ™© Posted April 7, 2009 Share Posted April 7, 2009 only on ABF will you see a Baseball thread followed by a refinancing your house thread followed by a hot or not threadABF>>> Quote Link to comment Share on other sites More sharing options...
FalconFanSince1970 Posted April 7, 2009 Share Posted April 7, 2009 It is neither it is a VA Home Loan.Can you get another VA loan? If so, try that. You should be able to get better terms and interest rate than a conventional loan. Check conventionals too. Shop around is my advice on anything over $300. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 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 RateCurrent 6%New 4.75%Mortgage Savings Over $100.00Closing 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. Quote Link to comment Share on other sites More sharing options...
FalconFanSince1970 Posted April 7, 2009 Share Posted April 7, 2009 From my current mortgage company,Interest RateCurrent 6%New 4.75%Mortgage Savings Over $100.00Closing 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. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 Yes fixed traditional 30 year mortgage. Quote Link to comment Share on other sites More sharing options...
FalconFanSince1970 Posted April 7, 2009 Share Posted April 7, 2009 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? Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 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. Quote Link to comment Share on other sites More sharing options...
Bullitt Posted April 7, 2009 Share Posted April 7, 2009 Yes fixed traditional 30 year mortgage.How long have you been paying your current mortgage? If you have been paying for 4 years, for instance, you probably don't want to refi back to a 30 year mortgage. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 How long have you been paying your current mortgage? If you have been paying for 4 years, for instance, you probably don't want to refi back to a 30 year mortgage.2 Years exactly, and that was one of my concerns, although not long it is still starting over. Quote Link to comment Share on other sites More sharing options...
eatcorn Posted April 7, 2009 Share Posted April 7, 2009 If you will be spending $6500.00 to save $100 per month, then you will need to be in the house for over 5 years to regain the value of the refi. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 If you will be spending $6500.00 to save $100 per month, then you will need to be in the house for over 5 years to regain the value of the refi.This is why I am still shopping around and have not jump all over this option. ;) Quote Link to comment Share on other sites More sharing options...
Bullitt Posted April 7, 2009 Share Posted April 7, 2009 This is why I am still shopping around and have not jump all over this option. The closing costs seem pretty high... Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 The closing costs seem pretty high...I ask about that and she showed me a break down of were all the money goes, please know she is getting her cut. <_< Quote Link to comment Share on other sites More sharing options...
Bullitt Posted April 7, 2009 Share Posted April 7, 2009 I ask about that and she showed me a break down of were all the money goes, please know she is getting her cut. - Yeah, you just have to shop around. Don't forget to look online, too. Good luck. Quote Link to comment Share on other sites More sharing options...
kicker23 Posted April 7, 2009 Share Posted April 7, 2009 Those closing costs seem high. I'm guessing there are points involved. What is your current mortgage amount? Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 - Yeah, you just have to shop around. Don't forget to look online, too. Good luck.I have but most companies want like between $300 - $500 upfront as a retainer/ appraisal fee. Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 Those closing costs seem high. I'm guessing there are points involved. What is your current mortgage amount?No points bought, $1170.00. Quote Link to comment Share on other sites More sharing options...
kicker23 Posted April 7, 2009 Share Posted April 7, 2009 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... Quote Link to comment Share on other sites More sharing options...
Demetrius Dew Posted April 7, 2009 Author Share Posted April 7, 2009 $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: $215,000 are you asking or is that what you paid? :huh: Quote Link to comment Share on other sites More sharing options...
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