Angie P.
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We did a refi on our home after only one year, but that was because we had two mortgages and neither the taxes nor the insurance was included in the payments. I don't think there are any true and hard rules regarding the time limits for refinancing.
Good luck! |
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veronica_nhc
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You have a pretty standard interest rate. Be careful on what "quotes" you get. Be sure to make sure that their monthly number includes the taxes, insurance, PMI, interest, and principal amount that you will pay with each monthly payment. You don't want to buy into their quote of $xxx / month principal only...
Alot of times, they quote you the principal amount payment. Of course that will be low, but you probably have an escrow account currently, and that escrow takes money from your monthly payments and puts it in a "holding cell" until certain things need to be paid, such as your Home owners insurance and taxes...
Only refinance if the INTEREST RATE will be better for you. You will need more than one percent for it to really be worth it after one year. But also take into account if you have good credit at this time as well. You might want to wait another year, unless the interest rates you are getting quoted now are just too good to pass up. Then, talk to a loan officer with a reputable company, such as CountryWide or something. |
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Heather
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This all depends on what type of loan you got- some allow you o refinance anytime, others hit you for refinancing too soon by making you pay the interest they're losing out on. Before you make the plan to refinance you should first find out if your lender will penalize you for doing so, then see about your options. |
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?
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That's a pretty good interest rate. I would leave it be if I were you. It wouldn't be worth all your trouble. |
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otherworldtrader@yahoo.com
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At 6.625 fixe dyou had better stay where you are. Your best options is to pay it off earlier if possible. If not that than consider paying so much a month on the principal.(200, 100 a month or even 50 ) . This would add up over the years.
I know a guy who owed about the same amount. He had paid off a car note and decided to keep the car. He barrow 35 grand and applied it to the principle and finance it 5 years as if he was paying a car note. Even with a higher interest rate he came out ahead. But fixed 30 year at 6.25 is good as it comes righ now. |
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10 pts for me?
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I agree with Veronica and also want to add that you may want to look into an Adjustable Rate Mortgage (ARM). The interest rates are lower than a 30 year fixed. I only suggest this because you mentioned that you will be in your home for about 5 years. The adjustable rate mortgage is fixed for a certain period of time like 5 years then adjusts ever year after that, typically no more and no less than 2 points. It's better to sell or refinance when the fixed period is over (unless rates drop again).
From my experience Lending Tree is ok but I would go to someone locally (mortgage broker not a bank) so that they can explain everything to you face to face. Mortgage brokers work with many lending institutions and a bank only has their institution. A mortgage broker's job is to find the best rate for your situation. Also, it's typically not worth refinancing if the interest rate is not at least a point lower. 6.625% is a great rate for a 30 year fixed but do look into the ARM's if you are interested. |
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helpme1
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Go for it! Call around and see what you can get for an interest rate! It should be a bit lower than that for what you owe and time you have left on the loan. There are no rules saying you can't refiance after only 1 year. I did it. Then did it again and again... till I got the interest rate I wanted. |
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SunFun
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The 6.625 rate is really not all that bad. You could probably not beat that rate in todays market by the time you paid the fees for obtaining a refinance. Also most loans have some sort of a prepayment penalty if you pay them off within the first couple of years. So check your loan documents and see if you have a prepayment penalty. Your original loan probably has some private mortgage insurance either built into that rate or you pay it extra because it sounds like you have a less than 80% loan to value ratio. And if the value of your place is only $89,000 any new financing would have to have private mortgage insurance too. Sometimes lenders will advertise no PMI but it is really built in then in the form of a higher interest rate if you do not have at least 20% equity interest. Speaking of your higher payments, most likely you have an impound account for taxes and inurance and when lenders quote payments they might not necessarily be including taxes and insurance in their initial quote. |
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yums
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read tips and articles on loans and mortgages on this site |
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Gary B.
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Yes you can refinance now but there is a better way. If you are able to, you can send extra money to the main branch of your loan, but send it towards principal and you will pay it off quicker.If you can send one everfy couple months but just two extra payment towards principal a year will pay your loan in half the time. |
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renzo06
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yeah why not check some banks like shopping around on good rates go to www.penfed.org they have a great deals on mortgages, good luck |
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flowerspirit2000
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THE LOAN OFFICER NUMBER ...CALL IT.....BUT CHECK AROUND BECAUSE REFINANCING HAS A LARGE CHARGE. UP FRONT ..USUALLY IF ITS A GOOD DEAL THE NEW INTEREST RATE SAVINGS WILL WIPE OUT THE COSTS |
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italian_princess
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You should check first if you have a prepayment penalty first. That is usually a term during which you will be charged by the lender if you payoff your loan sooner than agreed on. If there is no prepayment penalty, then go for it. It cannot hurt to refinance and if your house went up in value, then you could pull that equity out. If you are planning on living there for five more years, it is a good idea to have the smallest possible monthly payment. Don't worry about the interest rate. Good luck. |
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Mambers
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u might have to put some work into the house to make it worth more. |
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♫♪♫ PINKY ♫♪♫
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Yes but you cold possibly pay pre payment penalties..... depends on your initial buyers agreement and how it ws worded.... |
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lasalle_1986
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you can but it is not advisable. wait one more year. the rates will be better if you wait two years to refinance. also your rate right now is actually really low. be very careful. rates are going up, and it might not be a good thing. |
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corkybusangel
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i dont see how you got swindled? you have a great interest rate, you bought your home for less that the market value, you got me ! i think you can refinance but i dought you are going to get much lower on the interest rate. |
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answerman288
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I just did it with bank of america and they said it can be every 6 months |
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amosunknown
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You're probably at a pretty damn good rate where you are now, since rates are going back up, and most big loan companies like lending tree (when it comes down to actually putting the loan together) will pull out on loan amounts under 110k before they are finalized.
But, if you are able to find a lower fixed rate loan, or if you are certain you are going to sell your home in the next 5 years, you can try a balloon loan, which start out with really low rates (sometimes as low as 4%) but increase every year. Its up to you, yes you have owned it long enough to refinance, although if there is some sort of stipulation in your current loan you may not be able to, but that is uncommon and highly unlikely.
Have you added any equity to the home since you've bought it? Simple things like landscaping, paint and carpet, new kitchen cabinets, these things can add thousands to the value. Not to mention that the values of homes goes up just due to growth in the area, so I would go ahead and have it appraised again, taking out a loan for under the value of the home (although companies will try to get you to take out a full equity loan) can result in very nice interest rates.
If it were me, which it is not, i would watch the market closely over the past three years, and read up on furture predictions.
From what i have gathered theyre expecting prices to drop, and rates to increase. Its either a good time to sit still, or to jump on a better offer. |
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texas_aggie95
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That's not a bad rate, I would not mess with ARMs, Interest Only or Variables at this stage.
If you plan to sell in 5 years you are not going to get much back if you use a Real Estate Agent. Standard agent rates are 6% (3% seller/ 3% buyer) of what the home sells for, plus pro-rated taxes and closing costs are usually 5%.
If you sell it for $89,000 - $5,340 (agent) - $4,450 (closing) = $79, 210. You have to make sure you have paid your house down to that amount in order for you not to "PAY" to sell your house.
So, don't waste your money in a re-finance.
If I were you I would keep it as a rental when you decide to move to your new house. Everyone should have at least one rental property. It's a good investment to let someone else pay down your house while taking advantage of tax breaks and making some money. |
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wncan47
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if your only living there for 5 years you would be wasting your money to refinance. i would check around for lower interest rates. they are out there just look. if you can afford a larger payment i suggest cutting that 30 year to a 15 fixed.when you decide to sell you will get more cash by paying more.add 50 or 75 bucks to each monthly payment. this will lower your mortgage amount significately over the course of 5 years. also i suppose you have pmi and when you get 20% or more off your balance you can drop it leaving that to go to your outstanding balance. your interest rate is rather high but i would look at other mortgage companies to get at least a percent or more drop.never refinance when your only getting 1/2 or 3/4 percent reduction.would be better if you could get at least 1 1/2 percent or more. |
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tdwiditz
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I work for a loan company and read your question. If you only plan on living in the area or your home for a few years you should look for a interest only loan. Basically the loan speaks for itself you only pay the interest and then after 4 or 5 years the principle is added on. Look into it ,it may be a great option for you. Good Luck |
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monger187
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It doesn't sound like your rate is that high, and it's fixed. Fixed rates are generally higher than ARMs, because there is no risk that the rate will go up when the interest rate changes (make no mistake, ARMs are designed to go up when they adjust, not down). Don't believe everything you see on TV and the Internet, the rates you see will not likely be good for the duration of the loan, sometimes they are only good for a few months. And the payments they quote may cover only the interest, and will therefore spike in a big way when the interest only period expires. From what you say, there is nothing that leads me to believe you got swindled in any way. As for whether or not you can refinance, you can technically refinance any time you want. But you will have to pay some fees and probably closing costs to do so. Plus, it's possible that your current loan has a prepayment penalty, meaning that you pay a fee if you pay off the loan before a set period of time, usually 1-3 years. You're probably best off just sitting tight. |
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oklatom
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As others have told you, you have a good rate, and it will cost you to refinance. For just 5 years, it wouldn't be worthwhile to do. Remember anytime you consider a refinance to make sure you are comparing apples to apples. You can get a very low monthly payment if you choose to do an interest only loan, but it will never be paid off. Be careful. |
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zef_66
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overall that is a pretty good rate. But if you only plan on living there for 5 years, it is probably not worth the re-financing fees it costs to get a lower rate. Just stick it out for now. |
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blueeyes
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It is possible but you are going to have to check with the different banking institutions as to how much you will be able to lend and what your repayments will be, Don't sell now wait until the prices soar and then sell, then you can make a killing and maybe get double or even triple what you paid |
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?
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I'd wait on refi or don't do it at all. Even though jbw suggested ARM, adjustable rates are NOT the way to go. It can change sooner than the time frame given; there's a clause about it in the paperwork that they don't bother telling you about. Why pay 6.9% for 2 years & have to pay 8.7% after that? Guess what? It goes UP, not down. You'll soon be paying as much as you would a deliquent credit card. Once it's over 15%, then you'd want to refi to bring it back down. By then, you've spent more money on the payments than your home will EVER be worth.
Be glad you don't live in California, where I do. The housing boom has hit a slump & homes that are for sale are not selling. I've seen several signs with Reduced Price or Price Reduction on them. In the mobile home park where I live, there are 15 homes for sale. Going to the store or just out & about, I see 2-3 homes for sale on every block. |
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Kraftee
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Yes, you can, but you need to do your homework to help you decide if refinancing is wise now, or at all. I like this advice from the state of Massachusetts which helps the potential mortgage refinancer decide if it is a wise decision. Scroll down to the bottom for a worksheet that will help you analyze your situation and make an informed decision. Getting a lower rate is only one possible motivation for refinancing. Others are getting a shorter loan period (and thus saving on the total interest paid over the life of the loan) or consolidating your debt. It also points out that refinancing involves another loan app., another credit check, etc. etc. similar to your original loan application and these can add to the cost of refinancing. |
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Joe
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A Realtor could probably answer your question in a couple of minutes. I would advise you to ask a real world Realtor rather than asking amateurs on the Internet.
I'm not a Realtor, and I'm not familiar with your contract but it's my understanding that a mortgage can be refinanced at any time. Essentially, you'll be buying your house from yourself! You will be taking out a new loan to pay off the old one early. If the fees involved are small and there is no prepayment penalty, it could make sense to do so.
But, again, check with a licensed professional Realtor. A Realtor probably wouldn't charge you for a short consultation. Be sure to take your mortgage contract with you. |
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Sarah
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NO |
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preachingmissy
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You can refinance, but it would cost you more in the long run. It's better to wait until you have more equitity built up in your home. |
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