Financing in Cocoa>Question Details

Living In The…, Other/Just Looking in Cocoa, FL

We're considered doing a refinance on our home. We are two years into a fixed 6.5% 30 year mortgage. Unfortunately the mortgage company offering

Asked by Living In The Sunshine State, Cocoa, FL Mon Oct 5, 2009

us a .5% or slightly lower fixed rate will want no more than 5-6K in closing costs. The 6K that we've managed to pay off in principal will go back into the loan for closing cost and it's like we're starting all over again. The bottom line is that I may be laid off in a year and if I do lower my monthly payments by $160.00 a month I may be able to survive on a job that pays quite a bit less! Worst case scenario I may have to leave the State to find decent employment elsewhere. Since our house has depreciated and probably owe 40 - 50 K more than we paid for it does it make matters any worse to refinance and add another 6 K to what we owe to accept lower monthly payments? If I get laid off in a year I may end up having to walk away from the home anyway to find work.

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Okay Living In The Sunshine in Cocoa,
I see al the answers from out of state realtors, except for on on the other side of the state. So lets do this, If your mortgage is only 2 years old the p[roblem is how much equity diod you build at this point? It is not going to be much. As for an answer of being upside down already, I would say NO. Things are moving up and do not put that in mind set until you know for sure. The only way id of we do a Comp[arative Research Analysis pretty close to an appraiser . But it may be some what off. If you have money to get it apparaised again, do it. If you know the original appraiser you had from the bank, contact them and ask for th exact appraiser who id it. Ask him/her what they think now about its worth.
Secondly if you can pay the closiing costs it will be to your benefit. If yu have an FHA then se what it would be now. It should only be about 31/2 percent and if you do it with the same bank, they should give you a big break on all costs that they would normally charge. what I would do is sit down with them and see what they are going to offer for incentives to you do refianance. DO NOT TAKE ANY MONEY OUT JUST REFINANCE, PERIOD.
Now you can make a decision that will fit your needs and so forth. If you look for work out of State, are you selling or is some one going t stay in the home? What you could do is rent it out to cover your costs of the payments and try and get an aditional $100 to $200 in your pocket. But it will dpened on the rental market in your area. If you need any help at all feel free to call me. My Realty has seven Offcies and one near you to help. We can also manage the property for you and keep an eye on it, prequalify all applicants and then you have the final say of yesy or no. What we do is make sure a renter makes 3 times in salary of the rent. Ex. If rent is $1000 a month they must make no less than $3000 for the month.

I will be glad to come and speak with you just give me a call. Sorry if some spelling is a little off.

Pete Dolci, Realtor
ERA Showcase

My Cell (321) 480-2544
1 vote Thank Flag Link Tue Oct 6, 2009
I completely understand your concern. Although the broker below was short in his answer he is correct. You need to know what scenarios could happen and what position will you be in.

How much do you owe now and how much is your house worth now? Will the 5-6 k really make a difference? What I am trying to say is, if you are already over equity or close to it, wouldn't it be best to take the lowest payment you can for the time being?

Have you looked at the Fannie Mae and Freddie Mac relief refinance mortgages?

If you like, I would be glad to discuss this with you. I am here in Clearwater and am very familiar with this market and the options that you will have.

I hope to hear from you.

Andrew Kashella
1 vote Thank Flag Link Tue Oct 6, 2009
Let's work backwards on your question. If you walk away from the house, this question is moot. If you do a short sale (sell for less than owed) don't refinance because you'll be eating up your equity. If you rent it out or stay put, then you should consider refinancing. Rates today are in the low 5's for FHA as well as Conventional. So, you may be able to save even more money than you think. Closing costs should be around 2-3% depending on the size of the loan. What if's are hard to dictate, but here are the choices: Refinance if you think you will stay or rent, don't refinance if you think you will walk away or sell. I am licensed in FL to help you out. 770-255-3831. Just ask for Bill
1 vote Thank Flag Link Tue Oct 6, 2009
$6,000 closing costs divided by $160 per month savings equals 37.5 months before you break even. It is your call
1 vote Thank Flag Link Tue Oct 6, 2009
You have a lot of unknowns going on here. One thing you do know is that you can lower your monthly payments. Will lowering the monthly payments put you in a better position financially now and if something happens in the future what position will you be in? It's really a matter that only you can decide.
1 vote Thank Flag Link Mon Oct 5, 2009
What kind of financing do you have on your home now? please reach out to me via Profile.

We have options where you will pay no closing cost what so ever on a Refinance. Also in some cases no Appraisal needed as well.
0 votes Thank Flag Link Fri Jun 12, 2015
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