I would say it is very unlikely as most, if not all, lenders have a minimum credit score requirement of 620. I cannot remember off the top of my head if USDA has its own credit score minimum but I know the lenders well. Good luck, hope you find someone though.
Like the others said, it is impossible to know without more information. If you have a loan amount of $400K you would saving around $3500 a year in interest, but if you had a $100K loan you would only be saving around $875 a year. I normally tell me customers if they can recapture their closing costs with the amount they are saving in about 2 years, it is a good idea to refinance (assuming they are planning on being in the house longer than that). Closing costs usually run between $2500-$3500 depending on the loan amount (I am not including Prepaids in that estimate, which are the Escrows/Interest as you will mostly be recycling that money. You'll pay for the new escrows at closing but get an escrow refund from your current lender about a month after closing). So, use that information to determine if you think it is a good idea, or just call a good local lender and give them all your specifics so they can give you a better idea. Good luck! Let me know if you have any other questions.
Unfortunately your bank is correct. Everything (for the most part) is based on the appraised value of the home, and with a conventional loan you can only borrow up to 95% (sometimes less depending on the scenario) of that value (and only up to whatever the conventional loan limits are in your area. My area is $417K max, but yours will likely be different). So you are stuck unless home values come up or you want to pay some down. Sorry to be the bearer of bad news. Good luck!
Hi Rebecca, I dont know what information you submitted or how Zillow works in that regard as I am also new to it. But, you will very likely be much better off calling some local mortgage companies (focus on that word "local"). I know that many of the local companies like mine are far better than internet companies or big banks for several reasons. Assuming you get a good one, they have far shorter closing times (such as closing in approximately 3 weeks compared to many of the big banks are taking literally 6-12 weeks to close deals), they have an extreme concentration on customer service (they keep you in the loop the whole time, really sit down and explain everything to you as well as making sure to bring your whole life into the picture and choose the right loan program for you and your short and long term financial goals.).And finally, you are a lot less likely to run into any bait and switching which occurs all the time, even with all the extra precautions the government is trying to take. So look around for some good, local companies, and go from there. Hope this was helpful, feel free to contact me with any more questions.-Drew Brenner