Profile picture for adholmes42

sell or refi?

I own a home, I have a fha loan I have about $120k in equity, my income has been reduced and it is a struggle to make the payments. should I refinance for a conventional loan which would reduce my monthly (insurances would not be impounded) and i would not have to pay mortgage insurance. my payment is $1600 total monthly however without impounds my P&I is $985 I owe $219k (zillow est value $337k) or sell the home and re-purchase a home and invest and save the money?  please advise if you can.
  • November 12 2013 - Natomas Park
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Answers (4)

I'm sorry you are having a hard time making payments. I would suggest speaking with a lender about refinancing to see if that makes sense. Then determine what is your best option.
  • December 02 2013
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Hi Adholmes42

if you can qualify you should refinance your house , 


good luck


Omar Khamisa
  • November 21 2013
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Profile picture for JesseCoffey
Sorry you are struggling with your payments. With equity you do have options which puts you in a great position. If you like your home I suggest speaking to a lender about your refinance options first before you consider selling. With your equity position you can always sell if needed as a last resort.

Thank you,


Jesse Coffey
Keller Williams Realty - Roseville
  • November 12 2013
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As a homeowner, former mortgage lender & current Realtor I can relate to your dilemma.  How long have your had the FHA loan?  Reason asking is that FHA loans now have mortgage insurance for the life of the loan, unlike previously.   Also will you be keeping the home next 2-3 yrs ? Depending on the loan and amount of closing costs, most CC take about 2-3 yrs to pay off on your mortgage before you start making a payment towards your actual principle.  That being said the avg closing costs on a 100K loan is about 2K if its a refi.  You may be able to get a bit of a higher interest rate than par to absorb these costs.  Be aware of some lenders that will try to "save you money" by rolling in your current debt to your equity in your home.  (Ex Car Loan & Credit card debt)  Also known as a debt consolidation.
It sounds like you want a Rate and Term refi w/ NO CASH OUT.  I would check w/ your current lien holder. (whom you make your mortgage payments to) Many times if you have a current and favorable history you can save quite a bit on your closing costs.  Also they already have all of your personal information which makes the process much quicker and less stress/paperwork.

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Thank You,
Kevin  - Realtor
  • November 12 2013
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