mcs328

Ugh. I can get my interest rate down from 5.375% to 4.75% for 30 year fixed from Wells Fargo if my condo is worth $225. My loan amount is $170K but they didn't even ask about my income. I can afford the payments now and the new interest rate would save me about $113/month and the closing cost and app fee of $6000 is included in the calculation of the new payment when it's added to the new load amount of $176K.

Damn these foreclosures. Ugh. My assessed value of my condo according to the state is $240K but they're not gonna for that amount. I'm going to go look for a loan officer to see if I can get a better deal. Last time when I refinanced for 0.5% less and broke even a year I thought.

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InfiniteNothing

Have you looked into Obama's new mortgage plan. If you haven't missed your payments and you're not too far upside down you should qualify. You basically have to ask you lender if they have implemented the plan yet.

http://www.makinghomeaffordable.gov/?p=Homepath&s=Resources&t=President's+Homeowner+Affordability+and+Stability+Plan

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brainsmile

mcs... email me. I may be able to help you

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mcs328

Thanks for the link. Freddie Mac owns or guarantees my mortgage. I'll go with the website suggestion and mention the Home Affordable Refinance application.

Thanks BS for the offer. I'll send you a pm if I hit a road block.

zippyjuan

Your condo is worth $225k and your new loan would be $176k? That is still (barely) under the mark for having 20% equity which many lenders (used to- still do?) want you to have. I hope you can work something out- you should be able to. Don't know how long rates will stay at this level.

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renovation

i was talking to a friend just tonight and he was saying that your mortgage can't be more then 1/3 of your gross anymore including home exspences.not sure if this is correct or not. he was saying taxs and the true mortgage payment.

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Daedalus

Thank goodness. 1/3 was the limit for many decades of the post-war economy. Actually 28% was the most common limit I think. It lasted that long because it worked. Drastic increases in debt ratios over the last 10 years is a big reason why things have gone to crap and we're in the mess we're in.

Mcs, from a financial perspective you're not saving all that much. You're looking at a payment that's $113 less per month, but you're also looking at a new 30-year schedule. If my math is right you've got 25 years to go on the current loan. For a true apples-to-apples comparison, using your current payment schedule, you would only be saving about $30/month. Granted it's very cheap money. Paying off the other $83/month you start saving now with payments 25 years from now is a good thing if you can make that money work harder than 4.75%. It sounds like you have some opportunities.