Second Weddings

NWR: Anyone take advantage of FHA refinance?

Hi, ladies...I was thinking of doing this, but not really sure if it's worth the hassle...

I bought my house early February; and I got it for $218K. My mortgage payment, at 5.5%, is shy of $1600.  Looking at the FHA refinance programs out there, and at 4%, it looks like my monthly payment will be cut to almost $1K.  Did anyone take advantage of this?  At $600 savings, that's a great deal.  Just not sure if anyone's personally done it, and have had great results.  Thanks!

Re: NWR: Anyone take advantage of FHA refinance?

  • Sue-n-KevinSue-n-Kevin member
    Seventh Anniversary 5000 Comments 25 Love Its First Answer
    edited December 2011
    I didn't refinance with FHA, but I did refinance last year. I had my mortgage with Bank (Skank) of America, always paid on time, and the rates were actually about the same (4.25%) last February. I'd just refinanced several years ago, but went through the process with BofA again.

    I can't say if it will pay for you, but it's always worth it. They will do a re-evaluation of the worth of your home, and luckily in my case because I bought in 1994, during the last "buyer's market", my purchase price was still way below the current value. My old rate was over 6%, so I'm saving about $300 a month, but paid a lot less for mine as our home prices are more moderate.

    If home prices have dropped in your area since you purchased you may not have enough equity in it for a refinance to give you the results you want. At least this was my experience, but I've been in this house for 16 years. 

     
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