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Replies (10)
- ConnieK_Oklahoma
- Contributions:2899
what's missing is how long you had left on your current loan and what term length you have on the refi- those are critical pieces of info
- mail4deal
- Contributions:16
The loan originated in 2009 September so essentially I have paid for over 2years + 1 month as of now. Thanks for your response. I am going for a 30yr refi again
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
where are you getting a total monthly payment of $1986. You are around $2950 after taxes,insurance, and mortgage insurance. Also an origination charge of $6400 for a FHA loan at 3.75% is kind of steep.
- mail4deal
- Contributions:16
Sorry yeah 2950 is the total new payment..I looked at the 4.8 APR and realized something is amiss here.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Personally I would look at 4%. You would be saving probably around $150 a month and you could get rid of the $6400 origination fee so yu closing costs now are only $3600, slightly more than you current mortgage payment. Just have to make sure you still have that 5% net tngible benefit so you can do the streamline.
- Clay Branch, "Georgia Loans"
- Contributions:7835
Do you have 12K plus to pay at closing?
- mail4deal
- Contributions:16
Just trying to figure out how lenders term no closing cost and borrower paid closing cost and the difference just doesn`t make sense. Not that I want to pay $12000 :)
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Understand the closing costs exist no matter what. It is just how they are paid/handled. Important to undertand that no one way is best. Each circumstance is different. With "no closing cost" you are taking a higher rate and the lender is using the excess income to pay the costs. Borrower paid costs are just that paid by the borrower by either out of pocket or rolling them into the loan. With a no appraisal streamline, rolling them into the loan amount is not an option. That is why I suggested taking the slightly higher rate in order to offset the out of pocket costs.
- Clay Branch, "Georgia Loans"
- Contributions:7835
I ask if you have the funds to close because your figures are based on your principal balance. Using the principal balance and not the payoff as your base loan amount will start off having you paying 1 months interest at closing, aprx $1800, then add the closing costs you detailed at $10,000, you are now bringing about $12,000. Even though you will be reimbursed the existing escrow acct ( 3-4 weeks after closing ) you will still have to fund the new escrow acct upfront. If you have no taxes due in Nov, Dec or Jan and the insurance policy will not renew in Nov, Dec, or Jan, take the current escrow balance and add another $1000 to that figure, then add that figure to the $12,000 and that is about how much money you will need at closing if taking the 3.75% rate and the principal balance as your base loan amount. You can simply add the closing costs and new escrow to the loan amount, then if you use the principal balance as the base you will only bring aprx $1800 to closing which will be less than the full payment you would have made anyway on Dec 1 ( if you close in Nov). Your PITI payment will be aprx $3020 if the new escrow is about $2500.
Per Joe's comment on no appraisal, I missed that part so scratch adding the fees in the loan amount. If you do not have thousands of dollars to pay out at closing then you have to raise the rate for a no closing cost loan.
Per Joe's comment on no appraisal, I missed that part so scratch adding the fees in the loan amount. If you do not have thousands of dollars to pay out at closing then you have to raise the rate for a no closing cost loan.
- Annette Levinson, "Annette Levinson"
- Contributions:200
Where are you located? The lender origination is very high!
FHA Streamline refinance
Here are the numbers:
Current Payment: $3230 (inclusive of P&I, escrows, home insurance, and the MIP).
Break Down of payment:
- Interest Rate - 3.75% APR:4.88%
- Principal- $646
- Interest-$1340
- MIP- $410
- Taxes- $500
- Hazard Insurance- $58
Total New monthly payment: $1986Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
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