With these qualifications, can I successfully refinance?

Q: I am interested in refinancing. I have a $318,000, 7-year ARM at 5.25%, and have had the loan for about three years. My credit score is in the 700s. The current value of my home is approximately $350,000 to $360,000, and my loan isn't owned by Fannie Mae or Freddie Mac. What would be the most successful and least expensive way to get a new loan?

A: If you have at least a 10% equity stake in your property, and you appear to, you should be able to find a lender who will write your refinance. Of course, today's mortgage rates for a new 30-year FRM aren't that much below the rate on your ARM, so don't expect tremendous savings, but do expect to have to pay closing costs, usually 2% or so of the loan amount.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: How many times can I use my VA home loan?
OCT 31, 2019

There are three ways you can restore your VA eligibility so that you can take advantage of it more than once.

Read More
Q: Can my lender ask me why I'm buying a specific home?
NOV 06, 2018

Lenders can ask you why you are buying a specific home because there are different lending rules for different types of properties.

Read More
Q: Does the VA allow "asset depletion" mortgages?
SEP 20, 2018

Can you use private-sector retirement income and savings to help qualify for a VA-backed mortgage?

Read More