Refinance Question...

skid2964 · #1 (**permalink**) 01-25-2010, 05:39 PM

Bought my home Apirl of '07, have made 32 payments. Original Appraisal was 312k, financed 300k, Balance is 290k. Int rate @ 6.75%

Would it be of any benefit in any way for me to refinance? Are the rates low enough now to bring my payments down enough to be worth the trouble?

I'm after is a lower monthly payment or to grab some equity and keep it the same. (to pay off cc debt).

patrenia · #2 (**permalink**) 03-06-2010, 12:03 AM

Hello Skid,

The general rule of thumb is that if you can't refinance 2% points are more, it's not really worth the trouble. So the refi rate should be about 4.75% to benefit you. If not, it'll cost you more in the end.

Paying off cc debt with the equity? Not really a tactic I would recommend. Seeing this many times over in the mortgage business, there are many that have done it and wish they could undo. I hope this helps

.

sapphirecapital · #3 (**permalink**) 03-06-2010, 05:42 AM

I doubt that you can refi the property, not because you are not good for it but because the value of the house, original evaluation in 2007, thats the height of the market, you are probably upside down and such the bank can not refinance

jmross@lifesmartsites.com · #4 (**permalink**) 05-03-2010, 09:26 PM

Patrenia, I'm also looking to refinance and you mention the rule of thumb is a 2% percent reduction. How does the bank determine your interest rate when applying for refinancing?

sussanesylvia · #5 (**permalink**) 05-25-2010, 06:02 AM

probably you should seek the advice of a professional. Try out several companies and compare what options they are providing.

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