Should I Refinance My Mortgage? [Infographic]
Over the last couple of years with interest rates at a 40-year low, many people refinanced their mortgages. Even though rates have crept up over the last couple of months, refinancing may make sense for you. Use our refinance calculator to analyze your situation today!
SHOULD I REFINANCE MY MORTGAGE?
Mortgage Rates are still at historical lows. Many homeowners who purchased their homes a few years ago at mortgage rates in the mid 4.0% can benefit huge savings by refinancing their mortgage loans because mortgage rates are below 4.0% depending on your credit profile as well as your loan to value. Many home buyers who purchased their homes a few years back have seen double digit annual appreciation of their homes where they some homeowners, especially in many areas of California and Florida, have more than 20% increase in value. For homeowners who are fortunate to have their homes appreciated over 20% in value and purchased their homes with a FHA Loan, they should consider refinancing their FHA Loans to a Conventional Loan where they can eliminate paying any mortgage insurance premium. You can purchase house also with no money down payment in California for example. Check buy a home with no money down.
Refinancing FHA Loan To Conventional Loan
All 30 year fixed rate FHA Loan programs require mandatory annual FHA mortgage insurance premium for the life of their 30 year FHA Loan no matter what the loan to value is. Homeowners, especially California homeowners, who purchase their homes a few years ago have seen appreciation of their home of more than 20%. California home values are almost double than the national average and the average California mortgage loan amount is $400,000. FHA mortgage insurance premium can be very expensive and California homeowners who have at least 20% or more equity should consider refinancing their FHA Loans to a Conventional Loan and totally eliminate their FHA mortgage insurance premium.
HomePath Renovation Mortgage
Fannie Mae has discontinued the HomePath Renovation Mortgage. The HomePath Renovation Mortgage was Fannie Mae’s version of the FHA 203k Rehab Loan where home buyers of Fannie Mae owned properties could get financing of an acquisition and construction loan all in one loan program similar to the FHA Rehab Loan Program with a small down payment. Home buyers can still purchase HomePath Properties because Fannie Mae has not discontinued the HomePath Homes. Fannie Mae still has consistent inventory of foreclosed homes in their inventory and is listed on Fannie Mae Renovation homepath website.