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Help: should I refinance


thejohn-texas
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:confused:Hello please offer some advise, here is my situation, I owe 32,000 on my home

it is an FHA loan @8 3/4% home is valued at about 90,000

have never refinanced my lowest credit score is 761 Experian.

I have 0 negative entries on all three CRA's

17 year good payment history.

If I am right all interest is now "paid" and am now working on the principle, loan balance beginning to drop.

I would like to refinance and build an addition on to our home and remodel the kitchen and bathroom. at around 50,000 for addition and remodel

Grossed 113,000 in 2008, as stable as employment can get in this econmy

0 credit card debt

will never have more than 1 car loan at a time (currently 365.00 a month)

Both myself and my wife are tight with money and VERY vigilant on our credit scores

Just looking for some advise and dont want to be ripped off, have not shopped for a mortgage in 17 years.......

ANY ADVISE AND\OR TIPS ARE WELCOMED

Thanks..... John M. :confused:

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No offense intended.....but all I could think at first when I read your post was, "this guy has got to be kidding!" We should all have your problem!

I think just about any bank would do this for you.....at ~ 5.0%. Start looking around....and I would begin with your current bank.

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You should have seen my scores before I started repair, and owe it all to this site, with what I read here, I took it all in and got to work, we had massive medical bills that had ruined our credit. and a couple of credit cards maxed out with bills for tests.........

Scores that were in the low to mid 400's, its a good thing we already had the house, no bank or finance company would even touch us, we worked hard to keep our payments current.

It has taken 2.5 years to get to this point, and now I am like a crackhead..............I cant stop, I want an 800 score !!!!!

P.S. But still nervous about going into more debt with this economy, have had SO much good advise and support from this site, I just thought to try it again, so once again, any idea's anyone :confused:

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You should have no problem refinancing. The question is, do you really want to "start over" on another new mortgage since essentially yours is closer to being paid off?

What about doing an FHA Streamline refinance? You could basically roll your current FHA loan into a lower rate one, maybe a lower term than 30 years. Although that doesnt give you immediate access to $50k in funds needed to do repairs, you can take your monthly savings that you would normally pay and stash it away. That way, your term doesnt go up much (if at all) and your not essentially incurring any more debt.

Just a thought. ;)

In any case, you should really have no problem qualifying with your present standings.

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My 2@ worth

If your goal is to lower your interest rate, I would do nothing. The $ spent (even if "rolled into the loan") will exceed the benefit. You would have to save 200 or so per month to make sense, and not possible with a loan balance of 32K.

If your goal is to build an addition on to your home, you are "maxed out" for a cash out loan in Texas, to 80% of the value of your home. So, before closing costs you could get 40K from the refinance. If you could do the remodeling/addition you want for that amount of $, this is an awesome time to do that kind of loan. You will never see these rates again.

Charles

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  • 5 weeks later...

I just happened to come across this forum and have a refi question myself. I owe 100,000 on my home, I was able to get 4.5 apr refi cashing out, however, now i am thinking if i should just sell since the house next door just sold for 325,000. My property has even more upgrades than next door.

confused

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