Should I refinance on my home if it is currently valued at less than the original selling price?

u did not indicate why, only if you could. YOU CAN do lots of things

that you should not.

Whether your home lost value or not should not matter so much as how much you still owe on the home... You should look at the LOAN AMOUNT divided by the HOUSE VALUE. This is called the LTV... or Loan-to-value ratio. This ratio is what determines whether you can refinance or not.

National average mortgage interest rates can be estimated at www.mortgagenewsdaily.com

Most people say that refinancing 1% or more is worth it (because you save a lot of money over the life of the loan).

If you have an FHA loan, you can refinance into a lower rate and payment based on what the LTV is, upsidedown or not (it's called the FHA streamline program).

If you have a conventional loan, you may be able to refinance if that ratio is 80%.... 96.5% if you refinance into an FHA loan.

I hope that answers your question, if not, I'd be glad to share more info.

This is a question many homeowners may have when they are considering re-financing their home. Unfortunately the answer to this question is a rather complex one and the answer is not always the same. There are some standard situations where a homeowner might investigate the possibility of re-financing. These situations include when interest rates drop, when the homeowner’s credit score improves and when the homeowner has a significant change in their financial situation. While a re-finance may not necessarily be warranted in all of these situations, it is certainly worth at least investigating.

Drops in the Interest Rate

Drops in interest rates often send homeowners scrambling to re-finance. However the homeowner should carefully consider the rate drop before making the decision to re-finance. It is important to note that a homeowner pays closing costs each time they re-finance. These closings costs may include application fees, origination fees, appraisal fees and a variety of other costs and may add up quite quickly. Due to this fee, each homeowner should carefully evaluate their financial situation to determine whether or not the re-financing will be worthwhile. In general the closing fees should not exceed the overall savings and the amount of time the homeowner is required to retain the property to recoup these costs should not be longer than the homeowner plans to retain the property.

Credit Score Improvements

When the homeowner’s credit scores improve, considering re-financing is warranted. Lenders are in the business of making money and are more likely to offer favorable rates to those with good credit than they are to offer these rates to those with poor credit. As a result those with poor credit are likely to be offered terms such as high interest rates or adjustable rate mortgages. Homeowners who are dealing with these circumstances may investigate re-financing as their credit improves. The good thing about credit scores is mistakes and blemishes are eventually erased from the record. As a result, homeowners who make an honest effort to repair their credit by making payments in a timely fashion may find themselves in a position of improved credit in the future.

When credit scores are higher, lenders are willing to offer lower interest rates. For this reason homeowners should consider the option or re-financing when their credit score begins to show marked improvement. During this process the homeowner can determine whether or not re-financing under these conditions is worthwhile.

you will desire to stay someplace, so staying in the home is in all probability the perfect wager. as far as refinancing or a house fairness own loan, that relies upon on some different aspects. in the adventure that your modern own loan is at a greater physically powerful value, that's clever to refinance and take some money out. in the adventure that your modern own loan is at an extremely affordable, basically take out a house fairness own loan (HEL). as far by using fact the secure practices of a HEL, that relies upon on what you mean. you're removing the fairness on your place, so in case you do no longer pay this invoice, your place is on the line. in case you're worried in regards to the expenses, a HEL would have a hard and fast value, so there is not any subject of it expanding. a house fairness Line Of credit (HELOC) on the different hand will adjust any time the Fed's substitute the expenses. i think of they have been develop lots over the previous few years, so the increasing would desire to decelerate or stop at this factor. of path in the adventure that your credit is basically too undesirable to qualify for any own loan, you will desire to in all probability sell, take the money and pay off all your debt, lease for six-3 hundred and sixty 5 days, enable your credit to upward thrust and then purchase back at greater useful expenses. Peace, Greg S.

If you are just barely above or under water on your current mortgage, it is unlikely that you will be able to refinance without coming up with additional cash.

Only if you can reduce your interest by 2 points or more.