Should I refinance my mortgage even if home value has decreased?
We have been in our home for 3 years under a 30year Fixed mortgage. Our current rate is 6.75% and we had put just over 20% when it was initially bought for $264K. Our current principal balance is at $204,604 which is what I assume is the amount that the new mortgage is based off of. If our home value went down due to the market and that it was bought when the market was high, should we look at refinancing if the rate we can get is around 5.25-5.5%?
The new Obama plan allows for refinancing a primary residence up to 105% of the home value. Many homeowners are having trouble refinancing for various reasons … inadequate documentation, low credit scores, and tightened lending guidelines being among them.
For those who cannot refi, a loan modification may be a solution.
If you plan to remain in the home, then refinancing is worthwhile.
There are a lot of Hampton Roads homeowners who are considering whether or not they should be refinancing their home. If you would like a recommendation on who to refinance your mortgage with, visit http://www.iloanshop.com/ If you fall into these categories, you should give it serious consideration.
Good Luck……..!