Wednesday, October 14, 2015

I want to refinance

It dawned on me the other day that now that we have equity back in our home we may be able to refinance our mortgage and home equity loan to get a much lower rate. Our mortgage (re-fi done is 2007) is at 6.25% and our HELOC is at a whopping 8.75%. With the current rates so much lower we could be saving quite a bit each month - like $900 a month! I'd like to find a 15 year mortgage, but keep making the same payments we currently are making. The refi costs would pay for itself in 2-3 months and every month after that would get us closer to the equity we need in this house to be able to sell it.

So, I filled out an online form with our current bank who holds our mortgage. I have always been with them - but they called back and said they aren't financing mobile/mfg  homes right now. Sigh.....so now I have a message into the bank that has our HELOC loan to see if they do.  If not, I don't even know where to begin looking to find a lender that does manufactured homes with land. Ugh! I googled it, and some lenders come up, but of course I have never heard of any of them and how do I know they are reputable? Bleh...

But, we really do need to try to refinance, so I'll figure it out. I also don't know if we will run into any problems because of our bankruptcy 5 years ago. My credit is getting rebuilt (currently at about 700 fico score), my annual income is almost 100k, no other debt, and we're looking to refi a $169k loan on a home worth $250k, so well under the 80% threshold.


5 comments:

  1. Try a credit union in your state. Even though you aren't a member most just make you open a checking account with $25 to become one. They will have similar interest rates and are more likely to refinance for you.

    ReplyDelete
    Replies
    1. Kay, there is a large credit union in our area and that is next on my list to check with, if the bank holding our HELOC isn't an option

      Delete
  2. Also try chatting with a mortgage broker. We bought at the end of 2011 with a 30 year, 4.25% loan, then refinanced 10 months later into a 15 year, 2.75% mortgage and have never looked back. We were afraid of getting a 15 year when we did our initial purchase, but for the refi the numbers made perfect sense for our budget.

    ReplyDelete
    Replies
    1. I'm assuming mortgage brokers have many different lenders they have access to? that's a great idea.....now to figure out how to find a good one of those :)

      Delete
    2. Yes, the guy we used was actually out of Southern California (we're in Nor Cal) and the entire process was by phone, email, and then a mobile notary who came to our home to sign/notarize documents. At the time we went through this rates seemed to be dropping daily and we had proposals from a few different sources.

      Delete