I'm a US citizen living abroad and I would like to refinance my US mortgage, but every time I try it seems that it's never worth my while, even though my current rate is 5.875% and I'm seeing current rates at like 2% points lower. The fact that I'm renting my house while I'm abroad seems to mean the current rates don't apply to me as my property is considered an investment property and therefore the rate goes up, negating any financial benefit to me of going through the refi. I've currently got around 15 years of a 30 year fixed mortgage to go, and I'm wondering if there is any no-nonsense way I can go about taking advantage of the current low rates to make it worth my while to refi?

Hello Frank,The 2% rate you are referring to was more than likely an Arm. 15 year fixed rates are ranging from 3.5% - 3.75% depending on your personal situation, (credit score, debt ratio, loan to value, etc...)If you still consider your house your primary residence and you are abroad temporarily (3-6 months or less than 1 year) you should be ok with doing an owner occupied rate and term refi. If you have a formal rental/lease contract on your house and it is over a year and the rental income is reported on your tax returns then it would definitely be considered an investment property.You still can refinance the property and should expect that the rate be anywhere from a 1/2% - .3/4% higher.If your current loan is an FHA loan and you had been getting rate quotes on a new FHA loan the reason it may have not seem worth while doing is because the new FHA pmi rates are double of what they were 1-2 years ago.Feel free to call so we can go over all the details and also explore all possible loan options to help you out.Regards,Jeff Cost 513-403-6260

The short answer is you need to refinance this as an investment property. Interest rates are still below 4% for a 15 year fixed rate, and assuming you're going to keep the property for a few years, then it will make sense for you to refinance. We're based in Providence, RI. Please contact me at 401 301 0130, or bankyourloan.com/gdevine