Should i refinance my mortgage and how to find lender?

Question

we bought a house borrowing 99,000 2 yrs ago. FHA loan, 6.875%, 30 yrs.

MAN...30 yrs is still hard to get over

anyway, i have no idea about refinancing or when to do it but people are sending me mail about it, so i'm hoping for some more opinions?

thanks very much

L

Answer 1

your rate of 6.875 is a little bit high but considering the average rate now is only 6.250 -6.50 your in good shape.!

the mail you get is just junk mail it is not in your best interest to refinance at the current interest rates.   you will pay several thousand dollars to save maybe 50 dollars a month. If you are in a fixed rate mortgage leave it alone!  

believe me as a mortgage banker the grass in not greener anywhere else!  you have a good and stable, loan stick with what you got!!!

Answer 2

Right now you are having 6.875% It can be reduced to 6.25% and can shorten the length of payment period. Through refinancing you can also remove the prepayment penalties if you are paying on the loan you got before. And thus complete your loan in few years.

Answer 3

.    No reason to refinance.  The offers are for you to lower your rate if your loan is 10%.   Or for you to pull cash out if you refinance for $150,000 and want a check for $51,000.