Questions about refinancing...

skid2964 · Joined: 01 Feb 2010 Posts: 1

I currently own a home, purchased April of 2007, financed 300K at 6.75%, house appraised for 312K at the time. I now owe 291K.

Now, I am consider options to either reduce my monthly payment or take some cash and pay debt. The reduced monthly payment seems like a better option for me.

Im not sure where to start to find a place to refinance. Any suggestions? I can go to my local bank but thought maybe i would start by asking aorund here first.

kylenielsen · Joined: 02 Feb 2010 Posts: 6 Location: nyc

first off you will not be able to take any cash out or pay off debt unless you are at 85% or less loan to value ratio
second, you may owe more than your house is worth, the values of houses across america have declined over last 4 years, in some places up to 25%
your first step is to determine what the house is worth
second step is to see what your credit score is
if you dont have good credit it wont be worth it
it is always a good idea to see what your local bank can offer
97.75% is the highest most lenders will go and that has to include your closing costs
good luck