 REFINANCE Options in NCTuesday, August 3, 2010 - Article by: Eleanor Thorne -
If you have a conventional loan with a rate of more than 5.625% today- you should likely refinance. We are not seeing a tremendous problem with folks who are having appraisal problems - although a few people in North Carolina are being a little unrealistic about what they think their home is worth. Many of the folks we are talking to are NOT getting a 30 year mortgage as part of their refinance. Many of the people we are talking to are getting a 20 year mortgage, and it's only costing them $25 more a month- but it could be saving them $166,000 in interest! (for more on mortgage rates under 4.25% click here). If you have a FHA mortgage of 5.25% or less - it's a toss up of weather a refinance is going to help you right now. Part of the reason for this is the new Mortgage Insurance (MIP) requirements. It's almost impossible to get an Underwriter to approve a fixed rate mortgage to a 3 year ARM, although the payment difference is significant. A Veteran, with a VA mortgage rate of 5.25% or more, or if you have a USDA Home Loan over 5.25%... it could be time to refinance. USDA and VA mortgage loans have Guarantee Fees associated with them - but they are generally less than when you purchased, and for VA Home Loans, there is a streamlined process. If you are considering a refinance of your mortgage loan in NC - please call Steve and Eleanor Thorne, Professional Mortgage Planners, River Community Bank in Cary NC 919-649-5058 |
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