i needed my home to assess at 370k in order to refinance my current mortgage. I have 25 years remaining on?

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my loan at 4.875 %. i was hoping to refinance down to a 20 year at 4 %. my assessment came in below – around 335k. the balance on my loan is 295k.
do i have any other options for refinancing or am i stuck with my current loan? – not a terrible loan rate but was hoping to do better.
are there any federal options available or something to push the loan through or a similar loan like a 15 year? are those dependent on my income – my income is around 160k-180k so maybe it is too high to qualify? what are my options? i have perfect credit.

  1. Reply
    February 22, 2011 at 1:04 pm

    Money Magazine had an article on this.
    Do not refi unless you can get 1.93% lower interest rate.
    Remember – CLOSING COSTS – they are Monster – up to 6% of the amount borrowed.
    That is money you will be throwing away – and never seeing again.
    That’s $ 20,000 – Gone !
    The article said you are better putting this money into your principal.
    This way you save money in interest in the long run.

  2. Reply
    February 22, 2011 at 1:35 pm

    No, you can only refi to 80% of the value, and you have less then the required 20% equity. Your income is fine, the house just doens’t have enough equity.

  3. Reply
    Expert Realtor
    February 22, 2011 at 2:04 pm

    What idiot loan officer convinced you of that?

    It will take you 3 TO 4 YEARS to recoop your losses, possibly longer.


    Better alternative: Just make extra payments twice a year, equal to your current mortgage payment, TOWARD THE PRINCIPAL…NO REFINANCE IS NECESSARY.

    As a former mortgage broker, no way would I have sold you that option…it’s a total rip-off.

  4. Reply
    February 22, 2011 at 2:16 pm

    Your loan rate is very acceptable.
    Based on Y!A mortgage calculator, your current payment is $ 1703.12
    With a 4% rate, for 20y, your monthly payment would be $ 1787.64

    If it was me, I think I would keep the current loan and pay an extra 2-4 payments per year (if possible). If you are able to do the 4 per year, that cuts about 6 years off of your loan and it basically makes the extra interest more or less “disappear” because you your payoff would be around 18y vs 20y.

    If you don’t plan on keeping the home for at least 8y, I would just keep with the current loan and hope the market is better when it’s time to sell.

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