it is only 35,000 and refinancing cost would eat up most savings. so i can just pay ahead (principal only) but i would like to get the interest rate (11.5)down. i have a decent credit rating like 680-700.
2007-03-05 15:14:07 · 9 answers · asked by greg b 2 in Business & Finance ➔ Renting & Real Estate
No, banks won't lower your interest rate just by asking them to lower it. You'd need to refinance it.
2007-03-07 20:06:27 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
Well, if you think about what you are asking you will answer your own question. The bank is there for one reason, to make money for the bank. So, are they willing, for no good reason, to just tell you, okay, we won't charge you as much interest. Highly unlikely. They have no incentive to give you a freebie.
With that said, 11.5% is quite high. You should go to the bank and discuss a simple equity line on the property. I am assuming that the property is valued at more than the $35000. With that said, you could take out an equity "line", which typically has a variable rate, then use it to pay off the mortgage. It would still be secured by the property, but would be an open line of credit, funded to the tune of $35000, but potentially for the full amount of the value of the property.
You get a break on the interest rate the greater the value of the property and the value of the line.
Now, if the property is say only valued at $50000 and this is simply a small mortgage then it could be that is the best you will get. Smaller mortgages, typically done in the branch of the bank itself, and involve considerably less paperwork and cost upfront, will be charged a higher interest rate.
Anyway, equity lines, even though most are variable rates, will have a better interest rate and the interest is still deductible in most cases.
Hope this helps.
2007-03-05 15:34:30 · answer #2 · answered by GK 3 · 0⤊ 0⤋
Refinancing is in your best interest. The points and fees will not eat up any savings you will have in refinancing your mortgage.
Unless you have other credit challenges that you have not told us here you should have a very low rate at least you should be at least 4-5 interest points below what you have now. Even a 15 year loan with a lower interest rate would save you lots of money in the long run and a shorter period of time to pay it off.
The points and fees you pay for a refinance over the life of the loan. Check with your tax consultant for tax advice.
You should call a local mortgage broker out of your telephone book and check out your options.
This mortgage broker will want to complete a loan application and run a credit check to verify that your credit score is what you think it is.
After getting your credit score he will be able to tell you what loan program you are qualified for as well as your interest rate.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-05 18:31:19 · answer #3 · answered by Skip 6 · 0⤊ 0⤋
What I'm not sure of is why your interest rate is so high to begin with. With a credit score of 680 your interest shouldn't be so high, but that is besides the point. A lender will not lower your interest rate without refinancing. I understand it seems silly to refinance such a low amount. HOWEVER you may be able to get a better rate and a better term with refinancing. Some lenders, like the one I work for, offer 15 year mortgages with low interest rates. If you would like you can send me an e-mail and I will see if I am licensed in your state and if I would be able to help you.
2007-03-05 15:21:25 · answer #4 · answered by Amber J 2 · 0⤊ 0⤋
With a loan that small, most banks will offer an equity loan with no closing costs. Scores like that, even a 100% loan to value 2nd mortgage can be found in the 7.5-8.00% range, and the bank pays your closing costs. if this is your first mortgage, and you're under 80% loan to value, you should be able to get around 6%.
Start making some calls to banks in your area.
2007-03-05 17:04:30 · answer #5 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
This must be a second mortgage, if it was a first and you had good credit, there is no way it would be that high.
To answer your question, no. You have to rewrite the loan. The note you have the documents for dictate the note rate.
2007-03-05 15:24:26 · answer #6 · answered by 1235 4 · 0⤊ 0⤋
You should be able to refinance at about 6.5% and the closing cost can be rolled into your loan. You should not have to pay a dime out of pocket E-mail me if you have any questions or need some help to refinance.
2007-03-05 15:30:25 · answer #7 · answered by Paul 2 · 0⤊ 0⤋
jointly with your low value i might say do not refi. you're at present wearing a cost below 5% it extremely is hard sufficient to discover as is. The upload you're conversing approximately feels like an activity basically own loan, an ARM or a 50yr own loan. as quickly as I used to underwrite loans, i might touch debtors like your self to tell them to stay remote from what they have been doing because of their low costs. Many listened, some did not and that they stumbled on themselves attempting to get out of a variable value 2 years later. in spite of the actuality that for the time of asserting that, your fee looks somewhat severe for that value at that quantity, i anticipate you're jointly with your guy or woman loan coverage and or taxes. in case you owe 80% or much less on your guy or woman loan one extra thank you to maintain money may be to have your guy or woman loan coverage cancelled. desire that helps.
2016-10-17 09:09:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋
There is a website you should try for refinancing. They offer various options, provide you with advice for free and guide you through the whole process. http://mortgage.yeyeyup.com
2007-03-05 15:26:41 · answer #9 · answered by Anonymous · 0⤊ 0⤋