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Refinancing

i had a 30 yr conventional loan which i refi 2 yrs ago via an fha loan to get my interest rate at 3.85. thats great except that it is an adjustable rate for 5 yrs then after that mtge pyments may increase. was wondering if i should refi after 2 yrs and go with a fix entirely. can someone help. thank you
  • May 09 2011 - Staten Island
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Answers (9)

Best Answer

It all depends on how long you want to live in the house. If you intend to live longer than the next 5years then you should look into doing a streamline refinance to a 30yrs fixed since the rates are still in low to mid 4's.

In case you intend to sell sooner then stay put as the max 1st adjustment in the 6th year on FHA would be +/- 1% from the start rate of 3.85%. Take the savings for another 3yrs.

  • May 09 2011
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Look at your monthly payment breakdown, list the Principal & Interest and the monthly MI payment. A streamline will require a minimum of  5% savings. 
  • February 20 2012
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loan balance is now 370,000 and house is zillow guestimated at 357,000, i feel that maybe its worth refinacing, but in the form of streamline, can you offer any advice thank you in advance.
  • February 20 2012
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Did your plans change from two years ago?  A mortgage advisor can help by asking the right questions and keeping emotions out of the equation.  Why did you do an arm when you refinanced, you were aware at the time that your rate would rise.  What has changed from the time that you closed that transaction and today?

  • May 09 2011
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Don't think there will be a clear cut answer but the other thing to consider is how long you plan on staying in the house. The longer you plan on staying the more I would suggest refinancing to a fixed rate.
  • May 09 2011
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loan is 376k, it's worth according to zillow 382k, wondering what work would be needed to do if i was to refi in order for house to be appraised at higher value. Right now, i'm working on curb appeal......any information is greatly appreciated.
  • May 09 2011
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Check your note.  FHA arm can only go up 1% per year and 5% over the life of the loan.  It may not be worth a refinance at this time.
  • May 09 2011
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Rates are very good right now on fixed rates.  For FHA you can probably get low 4's for a fixed rate.

It would be better now than in 3 more years more than likely.  If you are moving or selling the home before the rate adjusts than don't refinance.

If you do refinance, you can do a streamline without appraisal or income verification.
  • May 09 2011
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 What is the loan balance and estimated home value?
  • May 09 2011
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