Should we refinance or not?
We bought our primary house 2014 the price of house was 116000 now house value is 190000. When we bought house, my husband’s credit score was 640.
Now his credit score has been increased to 800.
And APR was 4.25.
Our remaining mortgage is 99000.
What would you do refinance or not?
Only my husband works, we don’t have extra money to spend.
- Beverly SLv 76 months agoFavorite Answer
You should talk to a mortgage lender about maybe going to a lower term.. Rates for 15 years are in the 3's right now & if your current loan was an FHA and has mortgage insurance on it, if you refi to conventional (which you now have the equity to do) it would get rid of the PMI payment. If you are on an FHA loan & need/want to have a 30 year loan you will still get a lower rate & drop PMI by going to conventional. Have someone pre-qualify you & see if you will save money.Source(s): Mortgage lender 33 years.
- 6 months ago
How can any house be that cheap?
- SheilaKLv 46 months ago
If you refinance you loose all equity in your house.
- SlumlordLv 76 months ago
If you are refinancing to lower your interest rate and save money down the road then its probably not worth it (unless you are in the house are really long time - 10 years plus). Your new interest rate won't be that much lower and it will take many years to recoup your closing costs.
if you are refinancing to take money out of the house then go ahead if you have a really good use for the money.
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- 6 months ago
Depends on if you could
- 6 months ago
Whether or not to refi depends on the monthly savings, what you need, do you want to take money out, etc.
- NeverLv 76 months ago
The chances of anyone's credit going from 640 to 800 in 5 years are low. Are you comparing apples to oranges?
A few odd credit scores have a high of 1000, where most have a max of 850.
But, talk to a few places and see what they say. I have no idea how much rates are higher now. The closing costs involved will probably eat up any savings.
Whatever you do, don't get another 30 year. Get a 25 at most.
- babyboomer1001Lv 76 months ago
Maybe. You have to compare your current interest rate with the going rate now, and interest rates have gone up so you may not get a better rate. If you can get a better rate and the fees to refinance do not go over what you will save with the better interest rate, over the term of the loan, go for it.Source(s): Have refinanced to a much lower interest rate - when it's worth it, it IS worth it.
- Wayne ZLv 76 months ago
4.25% is a pretty decent rate.
According to Wells Fargo, their top rate on a 30 fixed is 3.875%. On a 15 year loan, its 3.25% but your payment would go up.
If you refinanced to a 30 year loan again and got the best rate, you would probably pay about $100 less each month but you would add those 5 years on to the back end of the loan again. You would also have to come up with probably $2000 for closing costs on the loan.
- OnlookerLv 76 months ago
I'd do a search for 'refinance no closing costs' and talk with a lender. Basically, you want to find out if you can reduce your monthly payments with no fees or closing costs.