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Replies (29)
Depending on the actual appraisal, you shouldn't have a problem either way. A lot of people may push FHA on you, mostly because the rate looks better, but keep in mind FHA loans are fairly costly... To answer your question though, based on the info you stated, you shouldn't have any issues refinancing... What is your pre-payment penalty, if any?
- basur
- Contributions:4
TX - no pre-payment penalty. How costly is an FHA loan? Apologize- don't even know enough about all this to be dangerous - - trying to learn.
You are not dreaming. I see you are in Illinois. The PrivateBank has many locations near you. Give me a call and we can discuss your situation.
Pat Andre
314-301-2228.
- ELender
- Contributions:1479
Either way you go, into a conventional loan or a FHA you are going to be much better than your current loan. I would sit down with a lender and have a look at the estimates of both loans. By my calculations you should save approximately $350-400 per month to switch to a 30 year fixed.. Do you think you would want to shorten your loan term possibly dropping to a 20 or 15 year term? You would still be able to keep your payments under what you are paying now.
- Lindsey M. Bishop
- Contributions:379
Basur,
You should have a smooth transaction based on the information provided above. I agree with the above comment about doing a shorter loan term, especially if the payments are close to or lower than what you now.
Most mortgages allow you the bi-weekly payment option too which is nice to shred some interst off your loan is your are not comfy going to a 20 or 15 year term. Also you can pay extra principle to your mortgage monthly to pay down the balance more quickly.
Good Luck!
Lindsey :-)
- Martin Wareing, "Martin Wareing"
- Contributions:3772
basur,
Congratulations on your hard work. You are one of the few "digging out" of this crap and should be commended. Soon you will have made it to the "better if not best" financing and will hopefully continue to "deleverage" and live a better life with less stress. Keep you eyes on the prize and you will get there. Keep rockin'.
- Lindsey M. Bishop
- Contributions:379
Basur,
Also I read above that you may do FHA. Here are two good sites to get information about FHA loans.
http://portal.hud.gov/portal/page?_pageid=33,717514&_dad=portal&_schema=PORTAL
Lindsey :-)
basur- FHA just has heavy upfront fees, as well as monthly mortgage insurance. Post a quote request, and you will see what I mean. The rates look better, so many loan officers push those.
Regardless, you are all set :) Good luck, and keep heading in the right direction.
- Bud Bruening, "budbruening"
- Contributions:4
Basur - Congratulations on getting your score up and keeping your credit clean. Based on your figures you shouldn't have a problem getting a good loan. There are many great people on here that can help you out and have offered honest advice. Make sure you give them a shot when you check into refinancing.
Basur.
I would take the FHA. Here is the deal with FHA vs fannie freddie.
FHA you have to pay 1.5 points in a funding fee to FHA . But then your PMI is noticably lower.
So you have to figure out how long it will be until your condo has 20% equity in it so you can refi out and dump the PMI.
With a fannie /freddie, there is no 1.5point premium, but you get a higher PMI monthly payment.
And FHA has slightly better rates than conforming. With a 650 FICO, fannie /freddie will bump your rate on their new tiered system.
Get a quote from someone who does FHA and someone who does straight conforming and weigh your options.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Why is everyone suggesting FHA. Doesn't she already have 20% equity in the place????
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Hard tellin Joe...
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Nic,
That seems to be the answer to every question these days: FHA is also the answer to the following issues:
Ending the Iraq War; Ridding the US of Toxic Tomatoes; Male impotence (Takes the place of Cialis); Depression; Oil Crisis; and finally World Hunger. Keep rockin'.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Ya MW----I like FHA as much as the next guy but these bozos pushing it for a 70% deal should be takin out to the woodshed.
BTW how do ya like to Tigers chances in the series?
- Martin Wareing, "Martin Wareing"
- Contributions:3772
They are probably the hottest and luckiest team in the hunt, so it is about momentum in these formats. If you can dig into the college pens... it looks like an elementary school charitable softball scoreboard. I like how they battled back. keep rockin'.
- basur
- Contributions:4
Thanks for the encouragement, everyone. I did a quote request, received a lot of replies and numbers all over the place. Was not able to tell from the quotes which might be for FHA and which were conforming - the front end costs really ran the gamut. I chose a local company and have contacted them. The equity is a big question for us, too. We are just hoping that our place appraises at or near the same as it did in 2006; hopefully, that's not too unrealistic.
I really appreciate the help!
B-AS-U-R
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Glad to hear, good luck to you and keep rockin'.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
LOL.... is that a Kenny Chesney acronym?
- basur
- Contributions:4
Good catch, CL. We are VI fanatics, although not necessarily big KC fans. St. John has not been the same since he started singing about it - lol.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Nic,
Stop with all of the acronyms!!! I'm old and feel like I'm a contestant on Car Hearts trying to read vanity license plates.... Just teasin'. KR
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Be as you are..... A Kenny Chesney song, he's big out here.
Stay away from the maters down there MW
- Wayne.T_ .....Colo.
- Contributions:1003
Way to go Martin .... "KR" no, I prefer the full deal instead of the acronym. :)
- Nic Netherton, "Colorado Lender"
- Contributions:7219
Who are you looking at for that Pueblo quote Wayne? Just out of curiosity......Ya got me stumped!
- Wayne.T_ .....Colo.
- Contributions:1003
Secrets CL, secrets! :)
and an ouch on reprice for the others today. So much for early morning quoting.
- Wayne.T_ .....Colo.
- Contributions:1003
ok CL, you made me do a double take anyway to make sure I hadn't missed a keystroke. Only on the 1st coffee at that time of day. I see two other dance partners are on the floor since then at about the same pace. its all good, or was at the time.
- marc_wvmb
- Contributions:186
FHA compared to Agency is no more expensive than most. Consider the new pricing adjustments for credit scores at 650. With regards to some of the other comments...yes FHA is a viable product offering for many, but as an old kid (FHA) back on the block, everyone is touting it as the save all product...It is still just an option that should be weighed carefully...it is not for all situations. In your case however, a convential route would probably be the better offering even with the 1.75 price hit for credit score...Avg rate for an individual in your situation is around 6.625-6.75 30 yr Fixed with no cash-out. One important consideration is also the findings by Fannie Mae or Freddie Mac...we have seen some tightning as of late, and I have had some clients that recieved EA level responses (your mortgage professional can tell you what this means). In these cases, my clients did not recieve the favorable rates, and FHA became a clearer option.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Way 2 bring it marc!!! First time I did not hear that FHA was also the cure for cancer and modestly and fairly displayed as it should be. Welcome aboard. Keep rockin'.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
You must have some damn good secrets Wayne! More power to ya
Refi possible?
Currently in 3/1 ARM, 9.875, bal $166,000, payment $1458, resetting in fall 2009. Was in dismal credit situation when we did that loan, scores in low 500's. Been working on the credit, scores slowly recovering, midscores now at 650, no lates on mortgage or any other account since refi. Townhome appraised at $224,000 in '06, zip 60187. Income: W2, $82,600. Still working on approx $5,000 in cc debt, have a car lease at $400 mo. Here comes the "am I dreaming question" - - Am I dreaming to think we could get out of ths loadn and into a 30 year fixed and also lower the payment?
Thanks for everyone's time!
BASUR
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