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Refinancing Still Allowed with Flexable Refi Options


July 7, 2010
Refinancing Still Allowed with Declining Home Values

With rates being much lower now it gives opportunities for people to pay off their current mortgage with another lower rate loan-refinance. However, many people are concerned about lower values and how this will impact options. On average, we have been seeing values ranging between 10 and 15% lower than the apex of the real estate market in 2007. However, I have recently seen some pockets in the St. Louis area increase over the past year!

The good news in regard to refinancing is that there have been a couple of programs implemented to reward the borrower’s that have maintained a good mortgage payment history over the past 12 months. CapGrow has options that will allow for up to 105% of the home’s value to be mortgage. Also, if you don’t have private mortgage insurance on the old mortgage, then you will not be required to have pmi on the new mortgage. Loan options depend on credit scores and the timing of the previous mortgage closing. In addition, there are also options if a borrower has had pmi before to keep it at the earlier, lower premium, versus taking the more expensive pmi rates now.

To help minimize the value surprise, CapGrow will review your area sales to help in assessing your estimated value before the appraiser goes out to inspect your home. This helps to minimize wasting $300 for an appraisal.

On clients that have closed in the past couple of years, we are seeing monthly savings of over $150 a month!

Contact me to see if you qualify for these flexible options.

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