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When can I refinance?

I have owned this home for 30+ years. I still owe 161000. Zillow states my house has a value of 178461. However, I owe 8000 in back property taxes. My current mortgage is at 8% & I owe an additional 14000 in deferred interest ( whatever that means). Can you give me any advise as to when I should apply for a refinance? My mortgage has been current. Thank you
  • October 19 2013 - West Hartford
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Answers (12)

Sorry Ham mad ...weird spell check glitch
  • October 21 2013
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I can totally appreciate that you work hard and respect that you tend to the grand kids. You should be proud of yourself for your commitment to your family.

Besides the back taxes, a significant concern is that your mortgage balance is going backwards... Your Mortgage company does not give you the option to pay interest and/or principle on your loan?

As far as Mr.. Hammond goes, sorry my impression is that his post was like a blank coloring book...maybe he has gotten out the crayons off line?

  • October 21 2013
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Profile picture for dportiz4
yes Paul, I am making the minimum payment of 1423. plus 500.00 a month in taxes besides all the other bills I have to pay. My mtg co only gives me the option of the one payment. Obviously, If I could, I would pay more down each month.
Considering I am doing all this on my own while helping to take care of my grandchildren and not being late on anything except my prop taxes, I think I am doing quite well. That's why I work 7 days a week. As far as Daniel Hamad's ( not Hammond) post, I feel he was being kind & considerate. What he said was correct & I value his opinion.
  • October 21 2013
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Profile picture for RealEstateCrew
Go sit down with a local lender and go over everything, the taxes may need to be caught up to complete the refi. 
  • October 21 2013
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14000 in deferred interest ( whatever that means).

DP - Does your mortgage payment coupon have a choice of four different payments and are you consistently making the minimum one? 

Daniel Hammond,  If your post was put up by a 12th grader, it would be ignorant and reckless...   8% means nothing if they are not paying the fully amortized payment. 
And regardless of what you or anyone else say a zestimate, while not a full appraisal, is a good place to start in determining a home's value. Many appraisers - than will admit - reference them.
Putting the zestimate aside, local homes sold and listed are a least a layman's hint in terms of estimated value.
Is your intention to hype or to help?
You are correct in saying it is not legal advice...such nonsense coming from a legal pro, is more like 'illegal' advice.

It is best to let it rest as such.
  • October 21 2013
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I would be happy to help you, as a broker we have many mor eoptions than a direct lender.
  • October 21 2013
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Thank you Sam. I have spoken to a few lenders, Peoples Bank, a credit union. They all tell me the same thing, try again when my balance decreases. If you have any further advice, It would be greatly appreciated.
  • October 19 2013
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I am not sure if you can qualify but you should talk to a lender ASAP If you would like assistance please feel free to contact me through my profile
  • October 19 2013
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Dear Homeowner:

Zillow only provides an estimate based on recent sales that they have access to.  However, if you would like a current estimate of your home's value contact a local real estate agent for an informal CMA (Comparative Market Analysis) or for a fee, an appraiser can provide a more formal value.  
   I work closely with a lender who can give you refinancing options and rates are currently very low.  Douglas Anderson through Primary Residential Mortgage [Removed by Zillow moderator]
Best of Luck. 
Jen Proulx
[Contact information removed by Zillow moderator. Please see our Good Neighbor Policy for information.]
  • October 19 2013
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At 8% you are, as you point out, throwing money away.  There are two basic questions that follow from that (and from what you've said):

1. Will you be able to borrow enough to pay off your old loan + the deferred interest + back taxes?  All of that will have to be addressed when you refinance.  If the property isn't worth enough, could you bring cash to the table?

2. You bring up your DTI ratio.  Underwriting requirements have become very strict with regards to DTI.  This is where cash comes into play again... if you can't qualify based on DTI, do you have cash you can use to pay down debts?

You should talk to a lender in CT - with your issues, I probably wouldn't want to go to someone that's just over the internet/phone, as this isn't going to be easy, based on what you've said.  Is your current mortgage held by a local bank or by something big?

To answer your basic question - you can refi at any time if you can qualify.

Also - don't rely on Zillow Zestimates... they can be wildly inaccurate.

--
This is not legal advice and is not intended to create an attorney-client relationship.  The post is only an opinion.  You should speak to an attorney for further information.  The poster is licensed only in CT & NY.    If this post is useful to you, please remember to upvote it.
  • October 19 2013
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Thank you Nora. It's just frustrating as I am always current on my mortgage. It's just the "debt to ratio" that always seems to come into play negatively. It just seems at 8% interest, I am throwing money away.
  • October 19 2013
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Typically, you can refinance at any time, however, there are a lot of factors that are reviewed.  If you have an debts that are affecting the title of your property (such as back property taxes) you would need to address those items at the time of your refinance. 

I would recommend considering how much debt would need to be paid with the refinance (ie. back taxes, deferred interest, current mortgage balance) and then consider your property value and consult with a lender in your area to determine what options are available to you.

  • October 19 2013
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