Question by : How do I go about refinancing my mortgage?
I have a condo with a 40 year mortgage at 7.125%. Loan amount of $ 89,600. I’ve had it for 2 1/2 years now. I’d like to refinance to take advantage of some of the better rates. I have an ok credit rating of just under 700. I do have a lien on the property though for about $ 15,000 from the regime (long story but basically I was lied to about upcoming regime assessments when I purchased the property.)
The loan is with Bank of America. I plan on keeping the property for at least 4-5 years, maybe more. I don’t know much about refinancing. Somebody said I could call BofA and ask for a better rate. Is that true? If not, do I refinance with them? Try my credit union?
Thanks for your help.
Answer by RT
Yes talk to B of A, yes talk to your credit union, yes talk to a mortgage broker
However, you will probably have to get a loan for $ 89,600+$ 15,000 = $ 104,600
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Try a mortgage broker instead of the big banks. They work harder and will give you better rates. As long as your FICO score is above 620 and you have at least 20% equity with no major credit blemishes, you should have little trouble refinancing.
I went with CashCall Mortgage, but they have have a mixed and sordid past. I have also used eTrade, which I liked a lot; however, eTrade no longer writes mortgages. You should get a rate around 4.75 to 5% plus closing costs.