gregorygarver.com

wfhlembo · Joined: 26 Mar 2005 Posts: 4

I bought my first home in Aug of this year. My mortgage is $1300.00 I can afford it with my bf who is not owner of the property. Unfortunately things didn't work out and I'm on my own and have to work 2 jobs. I was wondering more or less when can I refinance and if I do would it be a big difference or to make a difference what interest rate should I be looking at. My interest rate is a fixed rate 7.125 %. Please advice... I am not interested in renting or selling unless its necessary...I am only interested in refinancing to lower my mortgage payments I am not interested in getting money back. Thanks!The property is under my name only.

e8baller00 · Joined: 10 Jun 2004 Posts: 6

Refinancing is expensive. You can do it anytime you want since they just love getting those refi fees from you. The way you word it, your boyfriend is also on your mortgage documents since you say you couldn't afford it without him. He is still responsible for the note if that is true. (you don't have to be an owner to sign a mortgage) Your rate doesn't sound that bad...sounds like you need a roomate!

iNn0c3nt · Joined: 31 Dec 2005 Posts: 6

When you got the mortgage did you get a fixed term with your fixed rate? If you did it would be a case of weighing up the cost of any early redemption penalities you may have to pay for leaving that mortgage provider....when you refinance...Weigh it up..if there are no tie in's/early penalty charges..look around you can get another better rate....try the online money supermarkets....maybe consider whether you want a fixed rate or tracker this time depending on which way you think the economy is going...Good luck...

Sharona · Joined: 28 Nov 2004 Posts: 5

It wouldn't hurt to check with a couple of lenders in your area, but listen carefully, don't let anyone push or prod you into taking out a loan unless you are really fully informed and understand everything! These loan officers are pretty hungry right now and may not make clear all the repercusions of your actions. 7.125% isn't bad, but if you can't save at least $150 a month on your mortgage payment, it may not be worth it. Remember you will have expenses associated with refinancing. You might consider getting a roommate instead for awhile.

godged8100 · Joined: 28 Apr 2007 Posts: 4

you can probably get a 6.25% rate with FHA...but depends on your loan amount, credit score, etc.Not sure if you need a lower rate

kansas_girl_28 · Joined: 08 Jun 2007 Posts: 5

Legally, you can refinance at any time.That said, it's unlikely that refinancing is going to help you very much, if at all.Rates haven't changed much. You still owe the same number of dollars, and your property is unlikely to have appreciated much, so your Loan to Value is going to be the same. Unless your credit score has gone up to the point where you now qualify A paper where you didn't before, you're not going to get a much better rate than you got then. Even in that situation, you'd have to pay a pre-payment penalty to get out of your current subprime loan (they've all got them, unless you're in one of the states that prohibits them). Furthermore, it costs money to refinance.The most central fact, of course, is that you still owe the same number of dollars. There are no magic wands that really make the interest burden that much more affordable. There are loans such as the negative amortization which lower the the payment for a while, but without exception you will pay a higher real interest rate the whole time you have it, with disastrous consequences down the line.If you've got a $1300 payment on 7.125, you owe roughly $193,000, plus or minus. The very best rates available today (on fixed rate loans) are about 6%. If you could refinance to that rate for absolutely ZERO cost (you can't), your payment would be $1157, plus or minus. If you pay a prepayment penalty, and a total of $5000 including the one point It'd take to get that loan in California, you're looking at a loan amount of about $205,000, plus or minus. I get a payment of about $1230, and that's only valid if your loan to value ratio is still below 80%. You would have paid $12000, in order to save $70 per month. Breakeven time for that is over 14 years. I wouldn't do that. Why should you?I like to make money doing loans. But it's good business practice to tell you that it doesn't appear likely to help you.

TiggerBaby · Joined: 12 Dec 2005 Posts: 6

you're not going to get much lower of a rate probably and there will probably be substantial upfront fees for refinancing. Your house may also have gone down in value leaving you with none or negative equity, so you wouldn't be able to refinance anyway. Look for another housemate to help with costs - that's what I did