Home Equity Loan

Using my equity to refinance from an ARM to a fixed rate?

I bought my small southern california home for $760K. I had my agent pull comps that has my home value at $810K. Zillow.com (which I know is just a best guess) has my home listed at $805. I am 1.5 years into my 5/1 interest only ARM 100% financing and want to refi to a fixed rate loan asap. I owe $760K on the home. My credit score is 910 (Excellent). I want to put 5% ($38K) down on the home when I refinance. Can I roll my existing equity into the new fixed loan? (current market value $810K - $760K purchase price = $50K equity in home)

Public Comments

1. You must be referring to your transunion score because both equifax and experian on have credit ranges up to about 850. No matter what that is excellent. I'm a bit confused, in order to refinance such a large loan amount you will probably need to keep at least 10% equity in the property meaning that hte max loan amount you could take out would be $729,000, in order to refinance you'd have to at least pay an additional $31,000 out of pocket. lender are very tight now especially with jumbo loans because values can decrease very significantly they require equity left in the property.
2. Yes, most lenders like to see 10% equity to approve a refinance. Right now, you're at about 94% loan to value, so you would probably have to put more into the house first. Also remember the closing costs you will incur. You might be able to get around this with a "favorable appraisal", but lenders are less flexible right now. Also, what would your debt to income be? Remember that with a fixed rate mortgage, you'll also be paying principal, so your monthly payment will probably increase (since you're only paying interest now).
3. The short answer is, yes. The lender will consider the difference between the loan amount and the appraised value (which the lender will obtain before issuing the loan) as your equity and, hence, your down payment. Though the limits have been raised on what constitutes a "jumbo mortgage," you are still above the threshold of $417,000, so expect to pay a higher rate than mortgages for a lesser amount. In addition, because of the low percentage of equity, you may have to pay a higher rate, though your excellent credit score should mitigate that. Matt
4. Hi, I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://d6b0.easyurl.net