Skip to main content

Need direction on refinancing my mortgage

I took an 30-year FHA home mortgage 5 years and 2 months ago on a 208,000 home, at the time I just paid for the closing cost and had 0% down payment (not something im proud of), also my credit score wasn't great at all, so imagine that, to put it in perspective, I'm paying 1466 a month for it and now I know my interest rate is 7.57% on the loan.

All this time I just made sure I pay on time and never miss on payment, which I'm good here, suddently I started getting letters upon letters from different banks about refinancing my home. I grew curious so I started to investigate more. I found out that the average interest rate is somewhere between 2 to 5.5% for the home, whichs puts my interest WAY but WAY too high.

5 years later, I have paid 11% of this loan and I'm thinking about saving money. Now I bought this home 5 years and 2 months ago at 208k, the home value today is around 260-265k give or take. I'm not sure how real state works here.

11% paid of this house is $20,000 give or take, so I have 20,000 equity...? right? Now my house value went up to by $52,000, is this also equity or what happens to the 52,000 that the home value went up by. Is this own by the bank or is it my money?

This is the real state number I don't understand.

EDIT: my current credit score is 751, which transunion and equifax rate as "Excellent"

EDIT2: I want to change to a 15-year refinancing, based on credit karma calculator, I will be paying 1,276 a month with a 2.621% APR - not sure this is correct

submitted by /u/Fame_Monster
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/l8e5tv/need_direction_on_refinancing_my_mortgage/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more