Should I Refinance My Home

Question: Should i refinance my home loan? i bought a twnhse in riverside, ca in oct. 2007 for 317k. i owe 300k .more?

(Posted by: WESLEY V on 2008-01-25 18:52:14)

..on the loan. I don't want my value to drop below what I owe on the loan, but I also don't want to waste a bunch of money on a refi if I don't need to. I'm in a 30 yr interest only. It's fixed at 6.75 % for 7 years then it's a LIBOR ARM.The payment's $1, 888 a month. I'd like to get into a 30yr fixed P &I. Now that the rate's have dropped considerably is a refi worth it? Thanks for the ADVICE.

Posted by: saeed q on 2008-01-26, 10:35:45

You might want to first check out and see what your homes value is right now as of today. Due to the steep drop in home values many lenders and banks are considering your neck of the woods as a DECLINING MARKET, which means that they are now reducing the amount that they will loan to you by 5% or more. It could be that you might have to dish out some out of pocket cash in order to be able to do anything at all (may not be cost affective). Don’t take my word on it, but make sure to inquire with a few of your Local banks or mortgage brokers, or even call the lender that you have your loan with now. Make sure to price out your loan with your LOCAL banks and mortgage brokers only. A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO. Remember Buddha's advice: "Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense. " You are the only "expert " you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling " you something (its not advice, its advertising). Don't buy "it. "

Posted by: shiprepairwoman on 2008-01-25, 18:57:46

I would wait rates are really down yet and you don't have much equity. Hold out a couple of years until your home is worth more you you pay off part of your mortgage.

Posted by: mlmar625 on 2008-01-25, 18:57:52

Look at it this way - if you can get a mortgage at 6% and it is fixed, you are getting a better deal than 6.75% and the closing costs will be made up before the 7 years. At 7 years the ARM will go up - they always do - and there is no telling what interest rates are going to be in 7 years - they might be higher but it is unlikely they will be lower than 6%. So, if you plan on staying put, refinance soon. If you think you will sell the house within two or three years, then no need to bother.

Posted by: Big Deal Maker on 2008-01-25, 19:51:45

The real question is can you afford to make the payments on a 30 year fixed. If you can then go get a fixed rate and the amount you will be paying for that refi will take about 24 months to payoff. If you are on a libor today the market is great but wait till next year. That libor will come back to bite you.

Posted by: TPM on 2008-01-25, 20:44:54

Yes you need to refi out of that ASAP. WeFixRates.Com