Would it be too early to refinance my mortgage? See details.?
by Mortgage Rates on Thursday, November 11th, 2010 | 6 Comments
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Well, if you are already at 6 something%, why would you want to refi, especially i fthey are offering 9%. With a credit score of 597, anything in the 6-7% range is great. Keep that existing loan.
The second mortgage at 11% is good for that score.
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Shopping around is always fair enough, but with a somewhat low credit score might be tough to find a good rate.
If your paperwork from two years ago specifically states they’ll refinance the two into one at a lower rate, then you should talk to them again and point that out. But what exactly does it say – a lower rate than WHAT?
If there were any conditions in it like having excellent credit, you might not have much of a chance here. But why did you sign to refinance the 6% loan at 9%? If you were behind in payments or something, they might have had you over a barrel – but otherwise, why did you allow that? Was it an ARM where they have the right to change the rate, or fixed? Try to get a fixed rate, especially if you’re planning to keep the home for a long time.
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It is stated in original papers that both would be refinanced into one mortgage and to a lower rate
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I would suggest speaking with an attorney since they have violated the written agreement.
Your score of 597 is below average and the interest rates you have are great for your score.
If you want to shop around and get 1 mortgage make sure that your 1st and 2nd do not exceed 80% loan to value (LTV) of the fair market value of the home. If it does then you will be required to pay primary mortgage insurance (PMI).
Then contact a broker who will search up to 120 banks to see who will offer you a better deal.
Quote 1:
After about 2 years, both mortgages were to be refinanced into one with a lower rate.
Quote 2:
Recently, my mortgage company only refinanced my largest mortgage that was at around 6% and changed the rate to about 9%. The 2nd one was not included in the refinancing.
If the Quote 1 was true than there would not have been two mortgages at the time of the second refinancing. I find it difficult to believe that any company would promise in writing to refinance anything at a lower rate.
That said, if you can find a better offer, its never too soon to refinance.Just make sure you recover any costs of refinancing in a reasonable amount of time.