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I have an FHA loan. Should I refinanace

I am at 4.5% / 5.4apr. Its a newly built home. I have been in it for 2 yrs. The value of the home is around 350K. I owe 330K. Would it benifit me to refinance to a lower interest rate. Or is it even possible. Can I refinance with another loan type instead of FHA.
  • November 02 2012 - Tracy
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Answers (4)

The APR from when you obtained your loan is irrelevant. You have a 4.5 Rate now. FHA streamline would be a "sure thing" assuming you make your payments on time and have a reasonable credit score. You could drop your rate considerably however you would face an increase in your monthly mortgage insurance and would need to see how those two changes balance out. The other option would be conventional financing at 95% Loan to Value, the new rate would be higher than on FHA but the mortgage insurance component would be less expensive. If you feel strong that you can appraise at 350000 and have a strong credit score this option would have a better short term impact than FHA.
  • November 06 2012
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Hello,

I would love to get you a comparative market analysis and quote you a rate. Dropping the monthly MI would be huge. If you are interested....my contact info is on my profile.

Look forward to hearing from you.

ivan
  • November 05 2012
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You may qualify for a rate and term conventional refinance. You would just need 5% equity based on  a lender's new apprasial. You would likely need to have good credit, some cash reserves, and debt ratios below 43% of your gross monthly income. Thank you

  • November 02 2012
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Depending on what your FICO is you may be able to refinance into a conventional loan at 4.0%.
  • November 02 2012
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