Question by gabyrig: Refinancing MassHousing/FHA Mortgage?
I think it’s very annoying that people who do things right get ripped off and people who don’t rip the benefits. I don’t know the specifics of this new “bail out” plan but I think that I should get some benefit.
I bought my condo in September in Boston and financed with MassHousing (they give out FHA mortgages).
Purchased Price: $ 201,000
Net Financed amount: $ 190,950
Interest: 6.5%
Appraised: $ 205,000
Assessed: $ 237,300
A month after I got my rate, their interest rate fell. The broker told me that (even though my rate wasn’t locked), I had to keep the 6.5% rate. I ended up having to go with their rate. Five months later, their rate is 5.1% and I wrote to them asking for an interest change but they tell me that I am not in “hardship” so they can’t do anything.
I think this is bull! The people out there who made poor decision are in hardship but if I’m trying to save $ 200/month I’m not. That’s 2 months of mortgage a year!
Anyway… any chance that I can refinance this new mortgage with someone else that will give me a lower rate? How do I go about it and when can I do that?
Best answer:
Answer by golferwhoworks
yes that is bull as you can streamline an fha note at any time but less than 1 year pay history has some additional hoops you must jump through
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Start shopping around while rates are low. You should be able to get a rate around 4.875 to 5%. You’ll probably need a new appraisal and if housing values have continued to drop where you are, you may not come up with enough equity. But it can’t hurt to shop around for a better rate – theoretically, lenders are supposed to be loosening the limits they have placed on mortgages.
Be glad you have your house.. We’ve been going through hell trying to get ours. Looks like the people that follow the rules lose.
Why do the losers win in the real world???