My mortgage is 7% – should I refinance?
Carl G asked:
I have a 30y fixed with PMI…100% loan, at 7% fixed with Country Wide. I have been in it a year. My original Mortgage broker called me today and is going to look at my refinancing options…I got the 7% because my score was 650 and I had a Bankruptcy from 5 years ago. Anyway – I know my LTV is going to be around 90-100% …with rates close to %5 what do you think? I plan on stying in my house for more than 10 years. Anything I should look out for as far as my Broker is concerned? – should I counter offer his Rate when he gives it to me?..he stated no points would be involved? Thanks for any info
ROGER
I have a 30y fixed with PMI…100% loan, at 7% fixed with Country Wide. I have been in it a year. My original Mortgage broker called me today and is going to look at my refinancing options…I got the 7% because my score was 650 and I had a Bankruptcy from 5 years ago. Anyway – I know my LTV is going to be around 90-100% …with rates close to %5 what do you think? I plan on stying in my house for more than 10 years. Anything I should look out for as far as my Broker is concerned? – should I counter offer his Rate when he gives it to me?..he stated no points would be involved? Thanks for any info
ROGER
RANDOLPH
No,Country wide is offering a loan modification to rate lower than you would expect.Also alot cheaper than a refi.
RORY
hey, if you can get approved then go for it. 2% difference in rate is not chump change. whatever you do, play the field a bit. don’t just go off of the broker who got you in to that 7% loan — if he cared so much about your rate in the first place, he would have waved the yield point spread (his EXTRA commission from the bank that issued the loan based on how much higher above the bank’s wholesale loan rate he got you into) and just stuck with the already generous 1% origination fee that all brokers charge. Ever wonder why the fed rate is so low and yet mortgage rates are still above 5%? …
ROY
I would say definitely refinance if you can qualify! Even if they come back at you for 6%, that will save you a ton over the next 10 years! And, if they don’t charge you any points, all the better! You may not get the lowest rate (5% or lower) because of the bankruptcy and it hasn’t been long since you took out this mortgage, so your credit hasn’t probably changed drastically, but it may have changed or improved enough that you will definitely get something better than 7%.! Good luck!
EMORY
Carl, the bottom line here is the appraisal. If you have only owned this property for a year, chances are the market is still declining and an appraisal MAY come in short. These loan officers are mighty hungry these days, I would make sure to get everything he says in writing.