“Myrna” writes:
My question is should refinance my mortgage now? I currently have a 30 year fixed at 6% and I also have a fixed home equity loan. My main goal is to have lower monthly payments and no pmi. I would like to know if I should wait until the end of the week and see if the rates go down again like they say they will. I know the houses in my area are going for below the market price and I don’t know if it is worth me refinancing now. We have been in our house for 3 years and we plan on staying for 10 more. I have an FHA loan now and would like to know if I do refinance which lender you recommend and when to do it.
Answer: You have a great fixed rate, and a slightly lower one may not save you enough money to be worth it in the long run…but you won’t know until you run the numbers.
I would recommend you get your three bureau FICO scores, then use that information to run a search on Lender Rate Match. That way your search results will be accurate. When you search you will be connected with one loan officer who can review your search results with you, and determine which loan programs are available.
Ask the loan officer to run a “break even” analysis for you. This will tell you how long it will take you to break even on the costs of the refinance versus the savings from a lower rate (if one is available).
I would also recommend you find out the same about refinancing into another FHA loan. If your loan officer does not offer FHA loans, you will find more information here.
As for timing rates, that’s a tough call. The market changes frequently and often unpredictably these days. Talk with your loan officer for insight, but understand he or she can’t see into the future.
If you learn you cannot refinance and are worried about being able to stay in your home due to your payments, call the Hope Now Alliance at 1.888.995.HOPE. The consultation is free and confidential.
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