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Do I have enough equity to refinance a fannie mae loan?

Using the zestimate of  $192500.00 and a balance of $140000.00, is the LTV enough to get  a 3.25 10 year loan?
  • August 14 2011 - Apple Valley
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Answers (9)

Clay had some great advice. Unfortunately not everyone will be able to deliver the rebate at that rate. It sounds like Clay is very competitive on the 10 year loan so I would give him a call. 
  • August 16 2011
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It is the opposite of buying the rate down. Every rate has a price, either a cost or a premium. It is rare to see a true "par " rate, where the price is 0, it either pays something or costs something. 10 Yr at 3.25% with a price of 101.00 means you will get a credit of 1% of the loan amount, in your case $1400. 3.375% paying 101.75 means a credit of $2450. Sometimes you will see it is better to take the 3.375% rate with the higher credit because you will finance with a lower loan amt and get a lower payment than the 3.25% rate.  
  • August 16 2011
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Clay, could you expound on the rebate?  Is this an industry standard, and how do I request it?  Thanks in advance
  • August 16 2011
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I will speak for myself, I am saying if your LTV is 60%, 70%, 80%, 90%, you should be seeing the same rate/price on a 10 or 15 Yr fixed. LTV will affect rate/price on a 20, 25, or 30 Yr. Just a note on the 10 Yr at 3.25%, that should pay you about 1% in a rebate so if you go with the CU again, be sure to get that, it's $1400. 
  • August 14 2011
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Are you folks saying the interest rate has nothing to do with LTV?
  • August 14 2011
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Two years ago, I refinanced $165000.00 for an advertised interest rate of
4.50 with my credit union.  Appraisal came in at $250000.00, but was given an interest rate of 4.75 because I was told my LTV (per fannie mae) wasn't good enough. In 2010 I made a $5400.00 principle payment and intended to continue this payment to bring my 15 year loan down to 10 years. My credit union is now advertising a 3.25 10 year loan, which by my calculations would up my payment by $84 a month, but I would not have to make the $5400.00 principle payment to pay off the house in 10 years.  This would save me nearly $400 a month to achieve the same thing.  My problem is, if my house has depreciated another 50 or 60 thousand and
i've only paid down loan to $140000.00 can I expect a higher interest rate by fannie mae guidelines.  Like bait and switch?
  • August 14 2011
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If FNMA owns your loan currently, you can refinance for up to 125% of your home's value with many lenders.
  • August 14 2011
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You could get that rate with an appraised value of $155K, the difference would be having to pay MI.
  • August 14 2011
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Yes, it is enough, but you had to contact with a lender to do the roughly home value estimate, just for sure.
  • August 14 2011
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