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Answers (7)
- anju_2
- Contributions:4
Hi, First of all Thank you for your valuable info. Yesterday I locked at 4.125 with out any costs on me. My loan is 410K on a 500k newly built home(last year apprised price/purchase price). Now with this down word market, the appraisal could be tough to get the same amount, Which could be a bottleneck to avoid PMI even if I put 10K down. -Thx
- James Peters, "JamesRPetersSr"
- Contributions:98
Well it depends on how much you save. If we can do a no cost loan saving you over a 100 dollars a month and skipping two mortgage payments then absolutely it makes sense. How big is your loan amount?
- T.C. Whiting, "TC_at_PNC_Bank"
- Contributions:332
To drop a quarter with no/lender paid closing costs only a year in is going to be worth it most of the time (and more is of course better). And not worth it at all with standard closing costs.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Make sure that all the closing costs are being covered by the lender. Not just the lender fees and no by rolling them into the loan amount. Depending on the loan amount and your credit score, that is a very agressive offer.
- William K. Halick, "Aceltis Mortgage"
- Contributions:9
Anju,
Like stated before you need to look at your break even period and how long you plan to be in the property. If the actual closing costs (not new escrows, or new per diem interest etc.) can be offset within the time frame you plan to be in the house, the faster the better, then refinancing would be worth it. So, if you plan to be in the house 10 years and it takes 2 years to break even then you'd have yourself a deal worth looking at. On the contrary, if the deal takes 3 years to offset and you're moving in 2 years, then obviously it's a no go. Also, there are programs offered from Fannie Mae and Freddie Mac that will allow your LTV to go over 80% without having MI - but these only apply to certain loans and there are special requirements (the loan has to already be owned by one of these GSE's, I can check for you if you need or your broker should be able to do it as well). Hope that helps, good luck out there!
Like stated before you need to look at your break even period and how long you plan to be in the property. If the actual closing costs (not new escrows, or new per diem interest etc.) can be offset within the time frame you plan to be in the house, the faster the better, then refinancing would be worth it. So, if you plan to be in the house 10 years and it takes 2 years to break even then you'd have yourself a deal worth looking at. On the contrary, if the deal takes 3 years to offset and you're moving in 2 years, then obviously it's a no go. Also, there are programs offered from Fannie Mae and Freddie Mac that will allow your LTV to go over 80% without having MI - but these only apply to certain loans and there are special requirements (the loan has to already be owned by one of these GSE's, I can check for you if you need or your broker should be able to do it as well). Hope that helps, good luck out there!
- Michael Winter, "Hillside Properties"
- Contributions:31
This is mostly a math problem. Simply compare the current payments against your new payments and figure out how long it will take you to get in the black.
Torrey's advice to make sure that your home will appraise at the appropriate value cannot be understated - this is quite important.
Torrey's advice to make sure that your home will appraise at the appropriate value cannot be understated - this is quite important.
- Torrey Merriel, "Torrey Merriel"
- Contributions:5
I would refi. You will get rid of the MI, as long as your place appraises. I would do a comp check with a local Realtor to see what the most recent sales comparisons are just to make sure.
Good luck
Good luck
Shold I refinance a one year old Mortgage loan
Should I bite the bullet or wait for some time?
Your input is greatly appreciated.
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