I purchased a 3 bedroom, 1 bathroom condo a year ago. My current mortgage loan rate is a 30 year fixed @ 6%. Should I refinance?

Asked by Angel Maloy, El Cajon, CA Fri Jan 1, 2010

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, ,
Thu Aug 15, 2013
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
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Robert Chome…, , San Diego, CA
Thu Mar 29, 2012
Probably yes. What is your condo worth right now? What is the loan balance? Do you have a fha/va/or conventional loan?
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, ,
Thu Mar 29, 2012
@Michael, I wonder if you noticed that this question was from over two years ago? I am also pretty certain that most mortgage professionals would rarelly counsel a home owner that they should absolutely refinance without knowing the pertinent facts of the transaction. There are a great number of questions that i would have to clarify prior to answering this, or any, consumers questions regarding financing. Ultimately, the answer lies in the borrowers goals (short and long term) and a thorough comparison of the numbers. I can think of a lot of reasons why it may not be a great idea for any homeowner to refinance, as well as many reasons why they should. In every case, however, I let the facts and the borrowers goals make that determination...not a universal battle cry to "Refinance now!!!". Much like the much over used response to the question "Should I buy or sell real estate now"...The answer is all to predictably "YES". I question motive when answers are given prior to knowing the facts. Nothing personal, I just think there is much more insight needed when counseling consumers on mortgage financing.
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Michael Robe, Agent, El Cajon, CA
Mon Mar 26, 2012
You should at least look into the possibility of re-financing. Rates today are under 4%!!! This could be a substantial savings.
Call me when you have time and I will go over the new Obama re-finance program that can even help those underwater on their loans.
If you would like to learn more about what my clients have to say about me and my services, please log onto my web site @ MichaelRobe.com and click on the testimonial section!
Thank you and I look forward to hearing from you.
Michael Robe, Realtor
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, ,
Sat Jan 2, 2010
Hi, Angel

That depends on a number of factors, such as:
1.) What type of mortgage are your currently in? VA? FHA? Conventional?
2.) What type of loan are currently looking to do. Rate and Term Reduction? Cash Out?
3.) How long have you been in your current mortgage? If you are currently in a FHA, this answer could save you money.
4.) What is the current value of your home?
5.) What is your current credit score? This answer could either save or cost you money.
6.) How long do you plan on being in the home. THis answer could svae or cost you money.

If still interested, I would be glad to discuss your position and options further. Please feel free to visit my Trulia profile and corporate website and contact me at your convenience.

Take care and Happy New Year.
0 votes
Keith Sorem, Agent, Glendale, CA
Sat Jan 2, 2010
I would ask a mortgage lender.
Assuming that you and your property qualify, rates are very low right now., but are slated to rise in March with the Treasury Dept. runs out of Stimulus money.

Don't wait, call someone today.
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Bob Georgiou, Agent, Danville, CA
Fri Jan 1, 2010
This is a simple algebra equation. Call your lender to see what terms he can get then compare. How many months will it take you to recover the costs ot performing the refianance? How long do you plan to saty in the home?

For example. Lets say you owe $250,000 making your payment about $1500 per month. YOur lender says you can qualify for a 5% note at a payment of $1350 per month. This is a savings of $150 per month.

So lets look at your closing costs if you do a no cost refi and have $1000 worth of title and escro costs you will recover your costs in a little over 6 months. If you plan on staying in the home for a year. It makes sense to do the refinance. What if, though the closing costs are 1% plus title and escrow for a total cost of $3500 and 24 month recovery period. If you plan on staying in the home more than 30 months, it makes sense.

A point to note is that if the cost recovery period is the SAME as the amount of time you wish to stay in the home the answer should be not to perform the refinance, the same as it would be if the cost recovery period is less than the amount of time you plan to stay.

You also have to consider when you did your last refinance. That discussion I think I will post to my blog...
Web Reference:  http://bob2sell.com
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Jennifer All…, Agent, Mentor, OH
Fri Jan 1, 2010
I am not a lender so I suggest contacting one to discuss all of the guidlelines for your current situation. You can speak with a local real estate agent to help advise about the property values around your home to see if your home has increased, stayed stable or declined. This may help you determine if this will even be possible. Information gathering will help you make the right decision for you. Best wishes!
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, ,
Fri Jan 1, 2010
You can go lower, but without knowing your loan amount it will be hard to advise.

Also it would depend on if you currently have a conventional or FHA loan, the value of your home and if you plan on cashing out.

In addition, your current credit score and employment can affect your situation as well.

Feel free to post more information.
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