I keep getting letters in the mail offering to refinance my home. I have 6.0% interest and have owned my home for two years. Currently, my mortgage payment (FHA) is 06.87, which includes per month Mortgage Insurance Premium, real estate taxes, homeowner's insurance, etc. The letters I keep getting claim that I would be able to get "as low as" 5% interest. Assuming I could get 5% (I have brilliant credit and have never been late on my mortgage), would it be worth it to refinance? Is there any way to figure out approx. how much I would be saving without digging up how much I am paying for homeowner's and real estate taxes for calculations?
Btw, our mortgage is a 30 yr. fixed.
I don't really know what my house has done market-wise. Two years ago I bought it for 9k and it appraised at 160k. The city assessment went up the first year I bought it to 4k and stayed the same this year, so… I dunno?
Is it worth it to get my home refinanced?
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One of the most challenging aspects of work in the mortgage these days is the inability of those who deserve help. Today, the mortgage market is very strong.
refinance student loans · Home. Banner. With My Credit Score Can I Get A Mortgage? This is my site Written by admin on March 16, 2010 ? 2:23 am. Are you wondering if you can get a mortgage with your current Credit Score? ...
I purchased my home 2 years ago and didn't have many options for loan products because of credit and financial situation (new small business owner). The variable rate kicks in around June and I have been planning to refinance. ... good credit, & equity in the home. You probably have a pre-payment penalty till your 2 years are up but I would start shopping about April. Banks are harder to get approved at & Countrywide is having some problems with the FBI. ...
Not really – but the amount you have going into escrow reflects the taxes, PMI and insurance. Dig out your last statement, check your payments and see how much goes to principal and interest.
Now, find a mortgage calculator, plug in your balance with 5% interest due over 30 years and calculate the new P&I. Subtract the new P%I from the ancient P&I and that is your monthly savings (and in real life, your savings are a small less than that because part of the difference comes from extending the loan payments out another 2 years).
Now divide the estimated closing costs by the difference in payments – that is your payback period. If you plot on living in the house longer than the payback period, it makes sense to re-fi, if you plot on selling before the payback period, you would lose money by re-fi'ing.
One note, if your house has depreciated and you are now underwater, I doubt anyone will refinance your mortgage.