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Should I refinance

I was just offered a no money down refinance loan to bring my 4.75 to a 4.25 interest . I'm 3 years I to my loan owe about 170k it's another federal housing stream line loan offered by intercontinental capitol group . Are there any dangers doing this ? by Hymlick007111 from New Braunfels, Texas. 27 days ago Reply


Mary Papageorge (MaryPapageorge)
#97 ranked lender in Texas - 48 contributions

If you are only saving .50% on your rate - I personally don't believe that's enough of a savings unless you plan on shortening the term of your loan. You should at the very least save 1.00% or more to make it worth while.If you know of anyone looking to buy or refinance - I love referrals. I'm one of the more honest lenders who will tell the truth and not take advantage of people. Mary

27 days ago
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,044 contributions

You need to look at the overall picture very closely.. Is it worth going to conventional and dropping mortgage insurance? how much are you saving monthly vs. how much are the closing costs.. Example: based on your info, PI payment is about $50 lower.. if your adding $3000 to the loan, then divide $3000 by $50 = 60.. it will take 60 months to break even.. This is not advisable.. Lenders have "net tangible benefit" (NTB) guidelines they must follow. but FHA is the most liberal.. they say you have to save at least 5% of your current payment.. but they don't take into account the closing costs that are paid to meet that requirement.. Lenders used to have a 48 month maximum NTB... but our in house guideline is 36 months NTB, so for us.. the payback period is too long.. I'm only working with limited info here, so i'm not saying you are getting a bad deal.. I cannot comment on that without looking at the complete loan details, but my advise is to look deeper.. and be sure the added $$ to your loan are not out of whack when compared to your monthly savings. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

27 days ago
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