Can I refinance?

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Refinancing?

Can I refinance my mortgage after 6 months?

I have two loans.no prepay penalty.

One loan is 6.65 fixed for 30 years
and the other loan is 8.59 for 15 years (with a ballon payment of 54,000 at the end).
I am just trying to get rid of the second loan. i bought the house for 370,000 and i was apraised at 440,000 4 months ago?

7 Comments
  1. Reply
    Carla79andexpecting2nd
    May 2, 2011 at 11:37 pm

    Hi yes you are able too. If the 2nd loan is fixed there will be a penalty for getting out of it early usually.

    Different banks have different rules so speak to your bank about it to be certain.

  2. Reply
    kao1saechao
    May 3, 2011 at 12:26 am

    get a up to date c.m.a or comp on your property. if the difference between what you owe and what the current market value is at or below 80% L.T.V then yes you can refinance the loan into one. otherwise don’t do it because you’ll just end up paying for closing cost and still have two loans (80/10). is it really worth the hassle and cost???

  3. Reply
    KConsults
    May 3, 2011 at 12:41 am

    You should try a couple of things.

    First, contact the holder of your first and see if they will do a no cost refi. Lenders will often do this to increase their portfolio.

    Second, contact your local bank and see if they can help you, especially if you will now be at 80% loan to value.

    You didn’t say if you put any money down. Your best rates and terms will be at 80% loan to value or less.

    You can also contact a few mortgage brokers and see what they say.

    Final thought, contact your previous loan agent (if you had a good experience) and see what he or she can do. They already received a commission on your other loan and may work a deal on fees for your repeat business.

    Congratulations on making what sounds like a smart buy! Has the market improved or declined in the last four months? Appraisals are only good for 30 days…

  4. Reply
    Jeremy Pham
    May 3, 2011 at 1:39 am

    Yes, I’m sure you can. It seems from the numbers your mentioned, that you are at about 80% loan to value. To the lenders, 80% loan to value and below is fairly decent. Obviously, your interest rate reflects the amount of risk that you are. For example, say your home is worth 100,000 and your loan amount is 100,000. That’s 100% loan to value, meaning that if you default on your mortgage, then the lenders probably not going to make any money of the sale of the home. This is why the interest rates are higher at a high loan to value. From where you currently stand it looks like you’ll do fine in trying to combine the two at a lower interest rate as long as you have a decent credit score, and you makea fair amount of money each month in relation to the amount of debt that you pay each month. If you wish, we can work on this together and do all the research to determine if it would be at all beneficial for you to combine the two mortgages. Good luck!

    Jeremy Pham
    Mortgage Lending & Investments
    866-966-4224 ext. 7608

  5. Reply
    ron d
    May 3, 2011 at 2:26 am

    If your credit score are above 620, it may work out for you if you have prime credit.

    The answer to your question is yes.

    http://1stnomoneydown.com

  6. Reply
    Cindy
    May 3, 2011 at 2:46 am

    If you will wait 1-2 more years you can avoid pmi insurance. If you simply do not want to wait, you will have pmi insurance until your loan balance dips below 80% of the value of your home. There are several questions that have to be answered, but you may qualify right now. I don’t understand why you re-financed your home 6 months ago and didn’t take care of it then.

  7. Reply
    geotom
    May 3, 2011 at 3:20 am

    IF YOUR CREDIT IS GOOD IT SHOULD BE NO PROBLEM TO REFINANCE WITH 70,000 IN EQUITY, MOST LENDERS WILL DO IT. WITH RATES DOWN YOU SHOULD SAVE A LOT OF MONEY OVER THE TERM OF THE LOAN.

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