The house was built in 2006 and I am using it as my second residence and I have 20% equity. The property is valued at $256,000 in Rio Rancho, New Mexico if that makes any difference. This is for a refi. Thank you
2007-10-06 08:00:37 · 7 answers · asked by me 2 in Business & Finance ➔ Renting & Real Estate
Lender is charging 1 point and closing looks to be $5034 including point and fees.
2007-10-06 08:15:52 · update #1
I would say it's definately a good interest rate. You have a good credit rating, a decent valued property in a beautiful part of the country. I'd go for it.
2007-10-06 08:14:25 · answer #1 · answered by Barry 6 · 1⤊ 0⤋
A 30 year fixed mortgage will maintain the same interest rate you started at for the life of the loan (the full 30 years) no matter how your credit score changes. By the way, in case you didn't know, you have a great interest rate for a 30 year fixed in California. Currently the interest rate for a 30 year fixed, no points is 6.250%.
2016-04-07 07:38:50 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The rate is good as long as you're not also being charged PMI, which you shouldn't have to with the equity you have in it. Did you get 20% equity because you purchased last year? Remember that you'll be paying closing costs again.
2007-10-06 08:50:52 · answer #3 · answered by Venita Peyton 6 · 1⤊ 0⤋
I would highly recommend doing a 15 year fixed , other wise you will pay more than double the market value , and with property values dropping you may lose your @ss on it ...but on the other hand with consumer debit growing at a record rate In total, consumer credit rose by $12.2 billion to a record $2.469 trillion. The increase was bigger than the $9.5 billion gain analysts had been expecting. During the housing boom, when home sales were hitting records for five consecutive years and prices were soaring, many homeowners tapped the rising value of their homes to finance increased spending by taking out home equity lines of credit.
However, now that home sales are plunging and double-digit increases in housing costs are a thing of the past, home equity lines of credit have become less available. That has pushed consumers back to credit cards to finance their spending.
Analysts are watching closely to see if the steepest slump in housing in 16 years could have a more serious impact on the economy through the wealth effect.
And with democrats possibly taking control of Washington , they are planning a 50 cents per gallon tax increase on Gasoline , and adding a carbon tax to consumer goods , and plans to eliminate the mortgage interest deduction on personal income taxes ...
I say keep spending , go 30 years , and pay over 400 grand for the property , and when the market hits bottom you can sell it for 150 grand ...
2007-10-06 08:32:59 · answer #4 · answered by Insensitively Honest 5 · 0⤊ 4⤋
Given that this is a second home it's a pretty good rate. You might be able to do slightly better if it was a first home and you may still be able to do a bit better if you shop around a bit.
2007-10-06 10:20:38 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It is not a bad rate it might me possible to get a little better though. You can check at bankrate.com but keep in mind that the mortgage broker needs to make money. Check how many points they are charging you.
2007-10-06 08:10:55 · answer #6 · answered by Tiko 3 · 1⤊ 0⤋
yes it is a good rate. Ask around and see if you can get a better rate but it wont improve by much
2007-10-06 08:41:47 · answer #7 · answered by Bob D 6 · 1⤊ 0⤋