Financing in 93720>Question Details

Allie, Home Buyer in 93722

I bought a house for 350k in 07/06 with loan @80/10/10 @5.875 on 1st and 7.0% on 2nd,value has decreased

Asked by Allie, 93722 Wed Feb 27, 2008

about 60k,should I payoff 2nd to try to Refi or wait?

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Hello Allie,

Bob's calculation is correct.

However the question to refinance should be based on your answer to this question? "How long are you planning to stay in the home? If you have long term plans or if you have no plans to sell, you should consider refinancing. Anyway the decision is yours. Rates and home values go up and down keep that in mind!!!
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0 votes Thank Flag Link Wed Jul 1, 2009
good afternoon allie.....i would stick with what you have, unless the second is on a short amortization..if you are contemplating paying off a $35,000 second mortgage, also consider the recapture time to get your money back plus the costs to close.......the cost per-thousand is important, not just interest rate....add both payments you are making now together and compare it to the new payment.....sorry, but i must disagree with the below listed comment about what your blend rate really is, it is not is 5.999%......i would be glad to show you the math if you like....very best regards.bob mcclure- successs mortgage partners- plymouth, michigan.....
0 votes Thank Flag Link Wed Jul 1, 2009
Did you refinance?

If not this would be a good time to refinance into one loan with PMI or LPMI.

You may be able to get an appromixate idea of the value of your property at:
Web Reference:
0 votes Thank Flag Link Wed Jul 1, 2009
Is your 1st loan a fixed rate or is it an adjustable rate mortgage (ARM)? If it is a fixed rate, then you need to weigh the terms and costs of a refi along with any payoffs needed to see if it is beneficial to refi at this time. You have a good rate currently on your 1st.

If the 1st loan is an ARM, then you need to see when the interest rate changes and by how much to determine if you should refi now. If the rate changes soon, then doing a refi now could be of benefit while rates are low.

If you would like more information I would be glad to discuss it with you. I can be reached at 559-325-3650.
0 votes Thank Flag Link Fri Feb 29, 2008
Allie, your blended rate is 6.448% between your first and second mortgages. Depending on what your appraisal comes in at it may be a better option to refi. If you can put down enough money for 95% LTV then you can do an FHA loan no problem.
0 votes Thank Flag Link Thu Feb 28, 2008
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