Refinancing options?? Need suggestions

[Anonymous]

I own a single family home for past 2.5 years.  It's current value is 293k accoridng to zillow. Mortgage balance is 295k. My intial loan was 305k at 6.25% 30 yr. conventional with PMI. Since the rates are very low now, I would like to refinance. My current EQ credit score is 704 as of May 13. I do not know why there is no update on it yet. I am subscribed to credit score monitoring form Myfico. I also have equisfax membership from DCU. It say myc redit score is 717 as of June 25. I have

25k in stocks,

30k in 401k,

18k in CC,

salary in 90k,

7k in car loan,

3 years of employment history at current employer ,

no late payments in past 3  years. What rate can I get for 30 yr fixed, 5/1 ARM. Can I get 5/1 ARM? What do you suggest? I cannot pay off credit cards right now cause my money is stuck in stocks.

[Anonymous]

I would not suggest an ARM becuase rates are almost certain to go up in the fairly near future.  With rates at historical lows, you should try to get into a fixed rate loan if at all possible and lock in the lower rate for the life of the loan.  One issue will be the equity (or lack of it).  I know there is or was a government program to refi homes that were underwater by reasonable amounts.  It was an FHA loan so you would be limited to local FHA loan limit restrictions.  Hopefully someone else will chime in.

[Anonymous]

Also, do not be too fooled by Zillow numbers.  They are more accurate than they were last year, but I know my home shows about 20K more on zillow than I could really try to list it for.

[Anonymous]

It was not an FHA loan. It was from countrywide and now BOA. Last year when I contacted BOA,  they said my loan will not be considered for Home affordable Refinance program because I have loan with PMI. They said another law will be coming in few months for guys like me. This was in August last year.

[ShanetheMortgageMan]

I'd give BOA another call, as you said there were some changes (for the better) on that program but it will require your current PMI provider to play ball with them.  With the Making Home Affordable program (that is Fannie Mae's Refi+ and Freddie Mac's Open Access) loans with PMI on them have generally only been able to refinance with the existing lender.

For the Making Home Affordable refinance programs the rates are dependent on your loan-to-value & FICO score... at 105% loan-to-value with a 700-719 FICO score you could expect rates around 5.25 to 5.5%.

You could also utilize some of your funds to bring in money on the refinance and refinance at a 95% loan-to-value, with a 700-719 FICO score you could expect an interest rate about 4.75%.

Do you still keep in touch with your real estate agent?  If so, ask them to do a "Comparative Market Analysis" on your home which will give you a much better idea on your value than Zillow.com does.