Should I Refinance My Home

Question: Should i refinance my home?

(Posted by: Nick Name on 2010-02-19 15:04:58)

So I have a current FHA ARM Loan at 4.25 percent, which I have had for two years now. The original Loan was for 400, 000 with 20000 down. I have saved enough to put down 20 % and get rid of my PMI. What would be the disadvantage to refinancing to a conforming loan 30yr fixed at 5.125 %, having only had my FHA for two years.

Posted by: kyle on 2010-02-19, 15:17:32

Double check with a mortgage broker but you could incur some fees by refinancing an FHA loan after 2 years because those types of loans have some different structure where they roll certain things in and amortize it over the first several years of the loan. I would definitely do this because when the ARM resets it could leave some uncertainty in your life. Since you started the loan 2 years ago right now your interest rate should not adjust higher because all of the indexes that the rates would be tied to have gone down in that time period. Try to get a 15 year fixed if possible but other than that good job and go for it.