Refi or not

[mrfixit290]

Got my first mortgage in July of this year for 150,233.00 @ 6 % apr.

with the rates dropping this week my realtor called me and said I should think about a refi to a lower rate.

 

My question is is it to early to think of a refi also if I did could I take some money out for repairs.

Fha loan my scores are all in 710'S wifes are in 680's ?

[jtoast]

The answer to whether or not you can do a cash out refi depends on your LTV (loan to value) Most lenders in my area are only doing cash out up to 70-80% depending on the property. If you don't have at least 30% equity you may have a hard time.

 

As to a refi in general, the question is, how long will it take for the savings in payment to pay for the closing costs on the new loan.

 

If the answer to that question is "less time than I expect to own this house" then it may be worth considering.

Edited November 20, 2009 by jtoast

[Brian B The Loan Professor]

If you put the minimum down then no cash out

You wont have the seasoning needed to use a new appraised value even if you have an appraisal that shows enough equity

at 6 months you can do a streamline refi and get a better rate.

 

B