I was wondering whether you have any insight into whether it would be a good idea to think about a refinance for my property in Pleasanton. My purchase price was $587k and I took an 80% loan (6.25%) and 10% second (4.75% now, thanks to Fed’s rate cuts).
It appears that it would not be a good time to refinance your home in Pleasanton due to the current lending guidelines. As it stands right now, you have what is called an 80/10/10 loan. That is an 80% 1st mortgage, 10% second mortgage / equity line and 10% down payment. The lending market today has seen virtually all of the secondary financing (home equity lines) disappear. The investors today are hesitant to lend up to a 90% loan to value and to be in second position behind the initial lender who is lending the 80%. Since the secondary mortgages are gone, we are seeing lenders lend up to 90% with one loan and it will need to include the additional expense of PMI. So, based on the fact that you have a good rate of 6.25% on your first and a steal at 4.75% on your second without paying any PMI, you are in good position and should not consider refinancing your Pleasanton home at this time.
Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.
