Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for MortgagePeeps

Refinance Suggestions?

I am having a hard time finding a lender that will refinance my current mortgage.  Currently my balance is $59,000.00  Value going on the low end $120,000.00 and rate of 5.00% with it maturing 8/2018 about 6 years remaining. All I want to do is lower my rate and if possible my term as well. My credit is not excellent but its not really ugly. No Foreclosure, No bankruptcy just really old debt 7 plus years ago .. No second mortgages and been current 2 past years on mortgage.  Appreciate any help.  
  • November 09 2011 - Dallas
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (2)

Profile picture for sunnyview
Have you looked into HARP? It might be a way to lower your rate if you qualify with fewer fees and no appraisal, but your loan must be owned by Fannie or Freddie. You can look that part up on the government HARP site in the blue link. There are other conditions too so you can look at those.

Because HARP is a government sponsored program the requirements are a little different than for conventional loan. I would suggest that you talk with a good lender and they can see if what you might qualify for.
  • November 09 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you checked the numbers yet to make sure it would be beneficial for you to refinance?  With only 6 years remaining, a 5% rate currently, and a low balance, it takes a larger difference in rate to make enough savings to offset any closing costs you would incur.  My first inclination would be to tell you to stay with the loan you have because you have a good rate already and it won't cost anything to do so.  If you haven't, check with your current lender and see if they will give you a no cost refinance that is a lower rate than you have now with a similar term or may 10 years (you can pay extra to stay on your projected 6 year pay off).  With other lenders it would be tough to have a no cost loan with a low loan size like this.  The 3rd option which could have some risk to it would be to see about a home equity line of credit that has zero closing costs that the rate is based on prime minus something.  Prime is at 3.25% now and if you have a rate that is lower than that for a little while, continue to pay what you are used to paying and it will pay extra towards the principal to pay it off quicker.  The risk is when will the Fed raise the Federal Funds rate which would raise your line of credit rate but it would have to increase to over 5% to have potential to cost you.  Let me know if you have further questions.  Either way, you are still in a good situation.
  • November 10 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.