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Seeking lower rate - When to Refi?

BuildrHcky87
Established Member

Seeking lower rate - When to Refi?

Hey all!  Quick question here and hoping for some advice.  Bought my first home with my wife July of this year (7/2019).  At the time of our home purchase, mortgage was based on my credit, which at the time was about 610 according to our mortgage broker.  That gave us a 4.75% interest rate.  He explained that rates will continue to drop and that he wants to get me into a lower rate and thus suggested refinancing  in maybe about 6 months or so.  So, my question(s) are as follows:

 

  1.Is it common now a days to refinance so quickly?

  2. What should I get my score to in order to get a lower rate?

  3.What are the benefits/drawbacks of refinancing?

 

Thanks all.

Message 1 of 6
5 REPLIES 5
CreditInspired
Super Contributor

Re: Seeking lower rate - When to Refi?


@BuildrHcky87 wrote:

Hey all!  Quick question here and hoping for some advice.  Bought my first home with my wife July of this year (7/2019).  At the time of our home purchase, mortgage was based on my credit, which at the time was about 610 according to our mortgage broker.  That gave us a 4.75% interest rate.  He explained that rates will continue to drop and that he wants to get me into a lower rate and thus suggested refinancing  in maybe about 6 months or so.  So, my question(s) are as follows:

 

  1.Is it common now a days to refinance so quickly?

  2. What should I get my score to in order to get a lower rate?

  3.What are the benefits/drawbacks of refinancing?

 

Thanks all.


Hi and welcome,

 

Is your loan FHA? If yes, you can do an FHA streamline. However, you must have made 6 payments and have you made the last 3 payments on time with a near perfect 12-month payment history. 


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 2 of 6
BuildrHcky87
Established Member

Re: Seeking lower rate - When to Refi?


@CreditInspired wrote:

@BuildrHcky87 wrote:

Hey all!  Quick question here and hoping for some advice.  Bought my first home with my wife July of this year (7/2019).  At the time of our home purchase, mortgage was based on my credit, which at the time was about 610 according to our mortgage broker.  That gave us a 4.75% interest rate.  He explained that rates will continue to drop and that he wants to get me into a lower rate and thus suggested refinancing  in maybe about 6 months or so.  So, my question(s) are as follows:

 

  1.Is it common now a days to refinance so quickly?

  2. What should I get my score to in order to get a lower rate?

  3.What are the benefits/drawbacks of refinancing?

 

Thanks all.


Hi and welcome,

 

Is your loan FHA? If yes, you can do an FHA streamline. However, you must have made 6 payments and have you made the last 3 payments on time with a near perfect 12-month payment history. 


Thanks!  Yes, it is FHA.  Thanks for the info on the 6 payments.  We have made 3 thus far on time, so it looks like I have to get 3 more in.  That won't be a problem.  Thanks!!

Message 3 of 6
NC_Mtg_Loaner
Valued Contributor

Re: Seeking lower rate - When to Refi?

See if you can't work to get your score up to 680+ as that will surely help and then keep your eyes peeled on the US 10 YR Treasury Bond yield.  It is the barometer for mortgage rates and whenever the recession or a slow down materialize, get yourself in a position to pull the trigger. 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 4 of 6
BuildrHcky87
Established Member

Re: Seeking lower rate - When to Refi?


@NC_Mtg_Loaner wrote:

See if you can't work to get your score up to 680+ as that will surely help and then keep your eyes peeled on the US 10 YR Treasury Bond yield.  It is the barometer for mortgage rates and whenever the recession or a slow down materialize, get yourself in a position to pull the trigger. 


Great advice, thank you!!

Message 5 of 6
CreditInspired
Super Contributor

Re: Seeking lower rate - When to Refi?


@BuildrHcky87 wrote:

@CreditInspired wrote:

@BuildrHcky87 wrote:

Hey all!  Quick question here and hoping for some advice.  Bought my first home with my wife July of this year (7/2019).  At the time of our home purchase, mortgage was based on my credit, which at the time was about 610 according to our mortgage broker.  That gave us a 4.75% interest rate.  He explained that rates will continue to drop and that he wants to get me into a lower rate and thus suggested refinancing  in maybe about 6 months or so.  So, my question(s) are as follows:

 

  1.Is it common now a days to refinance so quickly?

  2. What should I get my score to in order to get a lower rate?

  3.What are the benefits/drawbacks of refinancing?

 

Thanks all.


Hi and welcome,

 

Is your loan FHA? If yes, you can do an FHA streamline. However, you must have made 6 payments and have you made the last 3 payments on time with a near perfect 12-month payment history. 


Thanks!  Yes, it is FHA.  Thanks for the info on the 6 payments.  We have made 3 thus far on time, so it looks like I have to get 3 more in.  That won't be a problem.  Thanks!!


You're welcome. Here is a link for some additional info.

https://www.fha.com/fha_article?id=27


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 6 of 6
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