When we bought our house over 2 years ago, we financed 100% of our home. The interest rate on the loan is 7.375 and we owe approximately 203,000. The house will probably appraise for between 210,000 and 215,000. We would like to refinance into a lower rate. What are our options?

D. D.
Florence
Alabama

Answer:

The lender can use the full appraised value of your home. Fannie Mae and Freddy Mac will allow you to do up to 95% of your homes appraised value.

FHA will allow you to finance up to 97.75% of your homes appraised value.

Both loans allow you to finance your closing costs into the mortgage. It will be very close. You may be required to bring some cash to closing depending on the appraised value.

Interest Rates are very low right now so you should save a considerable amount on your monthly payment.

Greg Phillips
Assistant Manager 
Fairfield Mortgage Company 
FMC Office: (740) 773-5627
FMC Fax: (740) 775-1473
Toll Free: 1-866-567-5627 
Owner
Business With Greg, LLC

Web: www.businesswithgreg.com