Possible to re-finance NFCU 100% Financed Mortgage?

[XxRaVeNxX1]

Navy Federal Credit Union's 100% financing is sitting at around 5% APR, if I was to apply.

Is it possible to re-finance this a few years down the road?

Are there some limitations or guidelines when re-financing mortgages.

[CreditInspired]

I don't know the answer to your specific question, but keep in mind that there's a possibility that the interest could be higher than 5% in a few years.

[pipeguy]

You can always refi a home mortgage or car loan for that matter. However, given the dog and pony show one has to go through to get a mortgage today, you'd be looking at points, app fees, closing costs and various other costs such as inspection, etc. Add to that if the value of the house is not 20% over the mortgage amount, you'd need to pay PMI. Now if you are talking about refi with the same lender....probably, but you'd have to ask them because if they are holding the paper (mortgage) in house I suspect there may be an issue - it the paper was sold which is common, probaly no big deal. The value of a set rate is even if rates go to 8% you are at 5% and if they go to 3% you can refi, but it's not "free". 

While 5% seems high now, keep in mind that rates are going up and will probably be in the 5% area by the end of 2017 - considering its a 100% mortgage, that seems like a reasonable rate assuming it includes PMI.  

[XxRaVeNxX1]

Thanks yet there is no PMI, with Navy Federal 100% finance program.

​ I'm just hoping that I can lower this 5% five years down the road, and following through with it doesn't bite me in the foot, instead of taking a mortage with 3% APR.

[ejm201]

Such a great point! My wife used to be an Accountant and is now a SAHM but still follows the financial markets and what not. She always tells me,"Hun, there used be a time when 16% was considered a great rate and they'd be as high as 18-20%." I think buyers should keep things in perspective. In the grand scheme of things, even 7% is good by historical standards. Best to jump in before the non-govt feds start raising them which WILL happen within the next 6-12 months for sure.

[StartingOver10]

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@XxRaVeNxX1 wrote:

Thanks yet there is no PMI, with Navy Federal 100% finance program.

​ I'm just hoping that I can lower this 5% five years down the road, and following through with it doesn't bite me in the foot, instead of taking a mortage with 3% APR.

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Yes, that's one of the reasons your rate is 5% because the lender has "self insured" the loan rather than having a 3rd party PMI.  On those 100% loans the risk is higher to the lender so they bump the rate. It's not that you aren't paying PMI, it's that the PMI is rolled into the interest rate for the life of the loan.