Paul Volpe, vice president of Nova Home Loans in Tucson, said there is a lot of refinancing going on in Tucson, with Nova's refinancings doubling in the last couple of months.
"We're seeing rates in the high 3-percent to low 4-percent range for 30-year fixed mortgages, and in the low 3-percent to 3.25-percent for 15-year fixed mortgages," he
talks with a client about refinancing, he
first is interested in the client's current mortgage term and what their long-term goals are for the property.
then analyzes whether a refinance would be beneficial.
"If a client has an FHA loan, the FHA will allow a streamline loan if there is five percent savings between the old mortgage payment and the new one," Volpe
"An appraisal isn't required for the FHA streamline.
Likewise with a VA loan, as long as it is on time and meets the VA streamline requirements."
Those types of situations are the easiest to decipher as to whether Volpe
can show a direct savings for the client.
"If the client has a conventional loan, things get a little more complex," Volpe
"It depends where the client is on the value of the property and whether it is backed by Fannie Mae
or Freddie Mac
In some cases, they may qualify for a HARP loan."
But, if a loan isn't backed by the big four - FHA, VA, Fannie or Freddie - then things can get very complicated, Volpe
"Let's say it's a portfolio loan," he