I bought a house 1 12 years ago should i look at refinancing based on what has happened to the economy?

Devora
I don't think your property has appreciated in value enough for you to refinance at this time. In most areas of the United States houses have depreciated in value.This would make a refinance impossible. You would have to use your own money to make the refinance work. This would not be in your favor financially.If you have friends that work in the mortgage or real estate field you might see if they can help with the value of your home. This will give you some idea as to the value of your home and if there is enough value or equity to refinance.You might try a stream line refinance of some type with your current lender or through a FHA lender. This procedure will refinance your home for a rate and term with no cash out of any sort.You have to consider the cost of the refinance and when you get this cost back. I hope this has been of some use to you, good luck."FIGHT ON"

Chana
Your refinancing decision should be based upon the new interest rate you can get by refinancing compared to the interest rate you are paying now. The basic rule of thumb is: first, whether you plan on selling and moving within a short term time frame (usually stated as say 5 years and under), and second, whether you can lower your interest 1% or more annually. If the answers are no and yes respectively, you are a candidate for refinancing.However, a second question arises - as you pointed out, the economy has seen much turmoil sin eyou purchased your house, not the least of which has been the general decline in housing/real estate values. This brings up the question - are you eligible to re-finance. Over and above the credit worthiness questions typically asked and answered in the loan process, you would have to determine whether the value of your property has declined enough to put you "upside down" or "underwater" meaning you owe more than your real estate is worth. If you owe more than the real estate is worth, you will generally be unable to refinance without a down payment big enough to bring the new loan down below the appraised value.

Ana
The 'economy' has nothing to do with it. You need to analyze the annual rate of interest your are paying on your current mortgage and then determine if you can reasonably lower that rate by refinancing. If you owe, as an example $200K, you can only refinance the amount which your property is currently worth. If appraisals return a current value of $175K, you would need to show up at the closing table with $25K in cash to pay off that difference.If you can do so, you can refinance according to current mortgage rates.

Cesar
In your situation that may be a good thing. What is your current APR? Talk to your bank. They can tell you. Whatever you do, do not refinance for the amount of your house. Refinance the amount of your current mortgage. That equity looks great, and you may be tempted to get some extra cash. But, you will never get ahead. If your situation has improved substantially you may want to ask about a 15 year mortgage. See if your payments will be close to the same and knock off 15 years of payments.

Cole
Rule of thumb. Unless the new interest rate is 2% or more lower, do not bother. Right now rates are very low. If you refinance, here's the catch...the closing costs are around $4, 000. We closed on a house in August. The closing costs were $1, 700. I checked with the same lender and the closing costs are now $3, 500. We would save around $150 a month from a lower rate. That would take two years to offset the up front closing costs with the savings from a lower rate.If you can get a reasonable rate and decent closing costs, I would jump on it if it will save you money. We may not see rates this low for some time again.

Britney
Maybe.If you plan to live in your house and pay on the loan 5 or more years and the interest rate has dropped more than a point, go for it. It costs time and money to refinance, so you need to plan to be in the house for a while to benefit from the lower payments.

Cyndy
possibly but you may be bringing cash to close if you are short equity in the home. Many people think this is easy but if they put little or no cash down they can streamline an fha note but you will need cash to close in most casesI am a mortgage banker in TN & KY

Claretta
Check with your bank. They can look at the present rate you're paying compared to the current rate offered, which has declined significantly in the past year.Hope this Helps

Harriette
Not the economy - but the interest rates.

Carline
contact your lender and ask for loan modification. you might qualify