Our current mortgage is a 30 year mortgage, due in 15 (it was converted from a construction loan). We're 1 year in, so we need to refinance within the next 14 years. Our current rate is 4.25.
Dumb question 1: When they're asking for % down on a refinance, they're really asking how much equity you have in your home, right? Not additional money to put down.
Seeing into the future question: how long would you wait to refinance? I've been watching the rates and haven't seen anything below 3.875. Anyone think they'll go lower?
1) I assume they want equity in your house plus any $$ you want to put down in addition. I've always seen it ask how much is your house worth and then current balance on mortgage and any cash you want to get out (if you are cashing out equity).
2) I doubt it. We got a 3.875% about 2 years ago so that's great they are back down! Really, even if they drop a smidge, it would only change the payment (likely) a few bucks. Anything less than 4% is amazing and you should jump on that!
Post by FishChicks on Oct 22, 2014 11:24:01 GMT -5
Most of the applications i've seen want you to indicate down payment and existing balance. I would treat your equity and any actual down payment as the down payment figure, and then use the loan balance amount you want to finance. 3.875 seems great for a 30 year term. I've only seen lower rates for shorter terms recently.