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Just bought a home in Aug. 2008. Locked in a 6.5% APR on a standard 30 yr FHA. Can/Should I refi?

  • March 23 2009 - Crestline
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Answers (2)

Becuase you have an FHA mortgage, you can do a "streamline refinance" There are 4 options: no appraisal and no closing costs, appraisal and no closing costs, no appraisal and closing costs, and appraisal and closing costs. You'll want the 'no appraisal' option. If you elect the no closing cost option, your rate will be higher than if you elect the closing cost option.

Under a streamline refinance, there is no income or employment verification, and in most cases there is no credit check. All you have to show is that you've made the last 12 mortgage payments on time. Many lenders are now requiring a credit check and are impising minimum credit score requirements of at least 580 before you can do a streamline refinance. You do not have to use your current lender to refinance - you can refinance with any FHA lender.
  • March 23 2009
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It is definitely something to investigate. It will greatly depend on what your home appraises for now, how much you put down on it and what your financial situation is. I suggest you check the "Zestimate" on Zillow and post a mortgage request by clicking the mortgage tab and then "get custom quotes". The "Zestimate" will give you a rough idea where your property is in value since your purchase and the quotes will let you know what rates are available. Speak to a few people after that and make an informed decision based on actual numbers. The only way to answer your question is with hard data.
  • March 23 2009
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