Refinancing Question

Started by cc3duke99

about 15 years ago

Posts: 10

Member since: Jan 2008

Discussion about

I'm a first-time homeowner and purchased my Manhattan apartment for $690K in 2008 with a 5.625% 5/1 ARM. Given that the mortgage rates are considerably lower, I'm thinking of refinancing, but am unsure as to how to determine whether it makes sense. I think that the appraisal for my apartment may come down to $650K and if that's the case, not sure if the refinance at a lower interest rate (even if it's in the low 4% range) will make it worth it? Also, can anyone recommend a good local mortgage broker?

Response by crg5377

about 15 years ago

Posts: 20

Member since: Aug 2010

What is your loan to value at this point? To get the best rates a lot of lenders will want 25% equity or more.

If you are planning on staying past the time when ARM expires, it would make sense to lock in, though you would probably be in mid-upper 4%'s now

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Response by shong

about 15 years ago

Posts: 616

Member since: Apr 2008

Hi ccrduke99 - ill be glad to help answer any questions and see whether it makes sense for you to refinance. You have to compare cost to refi vs what your monthly savings will be and then see how many years it will take for you recoup the closing costs with your savings. Is this a condo or coop? Thanks. Sunny.hong@bankofamerica.com

Refinancing Question

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