I've been having trouble finding any clear answers to this situation regarding refinancing my home mortgage online, so thought I'd turn to Reddit before speaking to any lenders (who will end up hounding me...lol)
My wife and I bought our home at a discounted price from a family member. The home evaluated for ~$240,000 at the time (this was 3-4 years ago now), we settled for $180,000. After our $20k down payment, we have a mortgage on the home for $160,000 that we've been paying down slowly (we still owe ~$154,000 of principal).
With the increasing home values in my area (very in demand location even pre-pandemic housing demand), as well as significant improvements to the home, the house is likely valued around ~$270,000 now.
Would anyone here be able to tell me how the change between the lower mortgage price we're paying and the higher home appraisal would influence refinancing considerations?
I should add - our current mortgage has a 4.5% interest rate. Current interest rates on loans I've been looking at would reduce this to around 2.6% (could even go a little lower if we refinanced into a 15/yr vs. a 30/yr).
Wife and I also have very good credit (both over 800 scores), and have additional funds if we'd need to consider a larger down payment towards a new mortgage (if it made sense). We are also planning to still be in this home ourselves for at least the next few years.
Submitted July 11, 2021 at 06:38AM by intotheunreal https://ift.tt/3k5QQCX
