Can I refinance my mortgage after only two months?
I have an two loans.
One loan is 6.875 for 30 years
and the other loan is 9.87 for 15 years (with a prepayment penalty fee if I pay early-bummer)
2006-11-30 04:05:06 · 4 answers · asked by nyclastof9 1 in Business & Finance ➔ Renting & Real Estate
Yes, but unless you're willing to pay for closing costs out of pocket again, it would make absolutely no sense, not to mention the prepayment penalty fee!
If you just purchased it, and it sounds as if you took an 80% 1st mtg. with a 20% 2nd mtg, you're already at 100% financing, therefore theres no room for you to incorporate the closing cost into the loan so you wouldnt have to come up with the closing cost out of pocket! But like I said, even if you have room, it wouldnt be a very smart thing to do.
I'm not sure as to why you want to refinance, you have good rates on both of your loans! Rates here on 2nd mortgages is at about 11%!
2006-11-30 05:33:11 · answer #1 · answered by ALEGNA 3 · 1⤊ 0⤋
The short answer is yes, you can refinance.
The real question is will it be to your advantage to do so? First, you will have to take into consideration the pre-payment penalty on your 15 year note.
You also need to think about the new origination fees and costs associated with the new loan.
Lastly, you need to see if a new rate is low enough to make a difference in your payments. 30-year fixed rates are at 5.66 and 15-year notes are at 5.43.
If it was just your 30 year note you were going to refi, I would say it would make sense. Without knowing how bad your penalty will be on the 15 year note, I can't give you any advice. You will have to sit down and put a pencil to it.
2006-11-30 12:19:21 · answer #2 · answered by Steve H 5 · 0⤊ 0⤋
Short answer: Yes, you can. Long answer: how did you get in this circumstance? You need to be carefull of over refinancing and affecting your credit rating, much less points. Try to get a lot more information via a neutral site like http://www.refinance-and-loans.com/ and look in the state sections for any info particular to your state. Then try determining your downsides like early payment penalties and closing costs, try some of the "lenders compete" or direct lenders sites and then decide if it really makes sense for you to refinance now.
2006-11-30 19:57:17 · answer #3 · answered by LostAgain? 2 · 0⤊ 0⤋
Yes. You can refinance anytime. The question is whether there is a prepayment penalty on the first mortgage.
Here is some additional info. Hope this helps.
2006-11-30 12:26:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋