topic Re: Refinance? in Mortgage Loans

Refinance?

eddymvp — Wed, 16 May 2012 20:37:14 GMT

I purchased my house on May 2009 on a FHA loan at a 5% interest rate. Is it a good idea to re-finance to get a lower interest rate and lower my monthly payment?

Re: Refinance?

IOBA — Thu, 17 May 2012 23:38:05 GMT

IMO - NO!!!

But I don't know all the facts either. Are you dropping 2% off of the interest rate? Do you have more than 20% in equity in the home? How did you finance it to begin with - with FHA? Are you currently paying PMI? Do you have a pre-payment penalty? (They still have those on some loans.)

Re: Refinance?

gpeach — Fri, 18 May 2012 01:51:27 GMT

What bank holds your mortgage? There are some banks that will do a refinance at little or no cost. Our motgage holder would do the refinance with no appraisial and we would have gotten 4.25%. But we ended up going with a broker. We were at 5% and got 4.25%. We could have got 3.75 but by going with 4.25 we got a credit that paid all our costs and we even got some extra back. So worth looking into if you are staying. If planning on moving in next few years may not be worth it.

Re: Refinance?

eddymvp — Fri, 18 May 2012 17:24:08 GMT

This is a FHA loan and I'm paying PMI, I was told that after June 11, 2012 the RATE for PMI will go down. My loan is with Wellsfargo and they have that program that I don't have to pay for appraisal and to get a 3.xx rate I have to put 1 point, if I don't buy a point the rate will be 4.xx.