Financing in Lodi>Question Details

Ken, Home Buyer in Lodi, CA

I PURCHASED MY FIRST HOME SEPT '08. SINCE THE RATES HAVE DROPPED , CAN I REFINANCE IT SO EARLY?

Asked by Ken, Lodi, CA Sat Dec 6, 2008

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Glenn’s answer
You don't need equity for a streamline VA IRRL and the closing costs can be low if you shop around. With many lenders there is no requirement for the loan to be seasoned as long as you are current. Get some quotes you will be happily surprised.
1 vote Thank Flag Link Tue Mar 24, 2009
All,

Looks as if there is a policy change coming possibly mid-December where banks are only going to use the median home price of the homes area x 115% to figure the conforming home loans maximum. Currently, the conforming limit is 417k. They now may reduce the conforming maximum limit figure to the median price of homes in an area time 115%. So figure the median home price for Lodi or Stockton or Tracy or Manteca which all have different median home prices and times that median price time 115%

This will bring the conforming limit down in most area communities and force the home owner to take a first and second (ugly rate) to refinance. For example, So a home of 250k (Lodi maybe) median price x 115% means that the conforming limit on this house is $287,500 max. If you owe 320k then you'd need a second for $33,500 and the rates are in the 8-9% range.

Hope this doesn't happen and can't see where anyone but the banks will be helped. If anyone has additional information on this please pass it on, it would be appreciated.
1 vote Thank Flag Link Mon Dec 8, 2008
If you have an FHA or VA loan you can possibly do a streamline refinance to a lower rate that doesn't require an appraisal or income documentation.

Give me a call or email to discuss.

rob@affinity-financial.com
858-922-7899
1 vote Thank Flag Link Mon Dec 8, 2008
If you cand lower your rate at least 1% its worth looking into. Figure out how much you will save in the next 5-7 years (the average time you will stay in your house, even though you have a 30 year mortgage)
Compare the savings to the cost of the loan, if it makes sense, then go for it!
Web Reference: http://www.myallied.net
1 vote Thank Flag Link Sat Dec 6, 2008
Ken,

Good question. The big question: Do you have equity? You cannot refinance if you owe more than the house is worth.

Example: If you purchase a home for 200k with 10% down and financed 180k, if your home is now worth 150k, no lender will refi the home as it's not worth what you owe.

If you do have equity, it also wouldn't make financial sense unless there was a dramatic rate reduction of say 2%. Remember, when you bought your home there were closing costs which were in addition to the loan amount? To refinance, you would be incuring addtional closing costs with the new loan.

With that said, every case is unique as are the particular reasons the refi may make sense. I work in Stockton at Fowler Mortgage & Real Estate on March Lane and if you'd like to look into this further to see if it does make sense, give me a call or shoot me an email to my private email and we can take a closer look.

We've do home loans - wholesale rates - lower than most lenders/banks as we are a broker. We also represent home buyers to insure they get the best possible deal on their home purchase. If we do both, the buyer gets the best home price and home loan available.

Here is my contact information and with you, or anyone who might read this email string, we iffer this review for free. In the end the numbers must make sense for you. We just give you the numbers free of charge of course. And we're a 16-year member of the Better Business Bureau. Let me know if I can help get you the information you need to make your decision. Thank you for the opportunity.

Respectfully,

George Kininmonth
FOWLER MORTGAGE & REAL ESTATE COMPANY
2529 March Lane, Suite 103
Stockton, CA 95207

Phone: 209-649-8114
Fax: 209-952-0920
Email address: George_Kininmonth@hotmail.com
1 vote Thank Flag Link Sat Dec 6, 2008
There could be a 6 month to 1 year seasoning requirement by new lender, meaning you must have lived in the home..for that period of time, guidelines are changing every day but I ran into this as early as last Summer.
Web Reference: http://www.mattirvin.com
0 votes Thank Flag Link Mon Dec 8, 2008
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