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Wondering If You Can Refinance?

Four Ways To Know

Dr. Peter Robbins

Here’s a look at possible scenarios:

You can consider refinancing if ...

1. You have a fixed or adjustable mortgage with an interest rate over 6 percent

With rates on 30-year fixed loans below 6 percent; many homeowners want to lower monthly payments or move from an adjustable to a fixed mortgage. You’ll need to run numbers to see if closing costs justify the new rate’s monthly payment savings, but many lenders say that if you can save 50 basis points (0.5 percent), or even 25 basis points with no closing costs, it might be worthwhile.

2. Your credit score is over 650

To get a good rate on a non-government loan, your score needs to be at least 650 - maybe 680, depending on the lender and market. It’s worth pulling scores before approaching lenders, as scores help determine your rates.

3. You live in an expensive urban market and have a mortgage over $417,000

Government-set maximum limits on conforming mortgages, previously capped at $417,000 in most markets will rise starting in March to $729,750 in California and other pricier markets. If your loan exceeds $417,000, you could refinance from a “non-conforming” to a more desirable “conforming” loan.

Dick Lepre, senior loan officer at Residential Pacific Mortgage in San Francisco, says he expects more than 50 percent of mortgage loans in California have balances that fall in the new, higher range, and thus his state will see what he called “a massive refinancing boom.” Dave Zitting, Chief Executive of Primary Residential Mortgage in Salt Lake City, agrees, saying: “It’s going to fend off a recession.”

4. You’re eligible to refinance to an FHA loan

 Loans offered by Federal Housing Administration, typically targeted at first-time or smaller-budgeted buyers, are usually offered to people buying a property priced below a local market’s median price. New rules going into effect in March are lifting FHA lending limits to 125 percent of median prices in a local market (up to $729,750 in some markets) and will help many borrowers, says Bob Walters, Chief Economist for Quicken Loans.

If you would like to discuss if you’re a candidate for refinancing, give us a call at 800-893-8502 or visit us at our website: www.TurningPointMortgage.com.

 

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We do, however, speak a message of wisdom among the mature, but not the wisdom of this age or of the rulers of this age, who are coming to nothing. 7 No, we speak of God's secret wisdom, a wisdom that has been hidden and that God destined for our glory before time began.
I Corinthians 2:6

 

It is written: "I believed; therefore I have spoken." With that same spirit of faith we also believe and therefore speak
II Corinthians 4:13

 

On the contrary, we speak as men approved by God to be entrusted with the gospel. We are not trying to please men but God, who tests our hearts.
I Thessalonians 2:4

 

Jonathan, David's uncle, was a counselor, a man of insight and a scribe.
I Chronicles 27:32

 

Ahithophel was the king's (David's) counselor.
I Chronicles 27:33

 

"To God belong wisdom and power; counsel and understanding are his.
Job 12:13

 

And I will ask the Father, and he will give you another Counselor to be with you forever - the Spirit of truth.
John 14:16-17