I recently ran a comparison for a prospect that had a 1st and a 2nd mortgage they wanted to refinance to help them make an informed decision. Their expected home value was around $465K and their present mortgages added up to around $430K. I told them if they chose not to resubordinate their existing 2nd mortgage then they would have PMI with one new loan since their expected LTV would be around 90%.
Since they have been in their current mortgages for 4.5 yrs, their remaining term was 25.5 yrs and that was an important consideration in the saving calculations. Another factor that impacted this borrower was the loan amount which was pushing the conforming limit of $417K. This meant that they would have to bring money to close to keep the loan amount under the conforming limit so we would not have LTV limitations or possible rate hits.
If you know anyone that needs help making a good decision about refinancing, tell them to call me and I'll run a comparsion for them too. I am licensed in NC and SC.
Here's a sample analysis:
Posted by Sam Thompson
Senior Loan Officer
Southern Trust Mortgage - 910-852-9415
Helping you GROW your business!
www.activerain.com./luckydog1 - SC
www.activerain.com/luckydog2 - NC
http://www.southerntrust.com/thompson
http://www.southernpineshomemortgage.com
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