Is this a good mortgage? Understanding loan estimates

[HB2HSV]

Originally Posted by karen_in_nh_2012

It's easy because of course the current loan is for WAY less than the original loan. Original loan $240,825 10-year ARM (amortized over 30 years of course) with a beginning rate of 3.125%. New loan $155,000 15-year fixed rate at 2.5%. (No cash out -- I just want to get into a fixed-rate loan before the ARM adjusts.) Current payment = $1,660-something, new payment will be $1,670-something. (I escrow taxes and homeowners' insurance so those numbers include those things.)

Of course, if I had refinanced and taken some of my equity out as cash, my payment would be higher, but I don't need the cash.

Yeah. I'd be darned. That math checks out!

In fact, your $1,660-something included Homeowner Insurance and Property taxes, otherwise if it's just P&I, it would only be $1,033-something.

Congratulation. I know what a peace of mind a good refi can bring. Now you can enjoy your garden!

[karen_in_nh_2012]

Originally Posted by HB2HSV

Yeah. I'd be darned. That math checks out!

In fact, your $1,660-something included Homeowner Insurance and Property taxes, otherwise if it's just P&I, it would only be $1,033-something.

Yep. (Of course I needed to make LOTS of extra payments to get the balance down to where a 15-year loan costs so little, but it wasn't THAT hard and I plan -- hope!! -- to continue to do the same.) LOVE where I live, but it's the land of high property taxes. (Still better for my situation than paying income and sales tax PLUS a [somewhat lower] property tax -- but I do wince when I see a $1,033 mortgage become $1,670-something.)

Originally Posted by HB2HSV

Congratulation. I know what a peace of mind a good refi can bring. Now you can enjoy your garden!

Thanks!! You too!! And hopefully the OP's will go through fine as well.

[Capitalprophets]

Originally Posted by dglenn9000

Is this a good rate for a refi?

My credit score is 770
Loan amount is 179,000 with fees, taxes and home insurance rolled into the loan

Loan amount: $179,000 (no cash out)
Rate: 3.375 without points

A) Origination Fee: $1595, Points: 0
B) Fees: $1162 (Appraisal, Credit Report, Flood, HOA Certif, HOA Master insur, Mers Res, Tax Service)
C)Title-Lender Title Insurance: $326
C) Title-Settlement Closing Fee: $450
D) Total Loan Cost: $3533 (total of A, B + C)


I) Other Cost : $3399(Taxes, Gov Fee, Prepaids, Initial Escrow Payment)

TOTAL CLOSING COST $6,617


Questions:

1) Would you consider this a good loan considering the current rates, loan amount and credit score?
2) I was told by the loan broker that all that matters when comparing mortgage loans is what item D which totals A+B+C. All other E+F+G+H=I will be the same and should not get looked at as fees but escrow I would be paying anyway. Is this correct?
3) What can be negotiated?

Much appreciated. $6600 is a bit much for me to refinance for a 3.375. I was under the impression that loans cost much less , especially if you are not buying points.

Thanks
Glenn

Lenders can waive origination fee if you're refinancing (-1595. If your loan is under 3 years you can request R-8 (50%) discount from your Title company. I further asked for loyalty discount as I was going with the same lender so they provided additional credit. So my end take home was 2.5% 15 yrs with 400$ closing cost.

[plantletter]

I would like to get that contact information

[Mightyqueen801]

Originally Posted by LoanChic

Keep in mind those figures will change; they are just an estimate and if your LO is like me, he/she estimated on the high side. Your new escrow set up can't be avoided and certainly does add some cost to your new loan, however, you will receive a refund from your current servicer for the balance in your escrow account. When you get that refund you can apply it as a principal reduction to your new loan.

I'm assuming this is a conventional loan and if so, yes, that's a great rate for a refi.

Doubtful you can negotiate anything. There are lots of entities involved in a real estate transaction and they all would like to get paid for their services. Ask your loan officer if you need an appraisal though. Lots of refinances are receiving property inspection waivers, meaning an appraisal is not required.

How much are you saving per month? Take the total of A, B and C ($3533) and divide it by your monthly savings. That will tell you how many months you will break even on the cost of your refi. If you plan to be in your house longer than that time, it probably makes sense to refi. Of course, it also depends how long you've had your current mortgage and how much you've already paid in interest over that time.

Overall, the terms of your refi look great to me.

I thought so, too.

I just refi'd to a 15-year, and what you said in the bolded was my experience. She estimated closing costs to be about $8K and I had to provide a statement showing I had that in my checking account. When I said, "Hmm, that seems higher than I expected", she said not to worry, it would likely be lower. It was $3600 and change.