Posted on: 27th Aug, 2010 08:42 pm
I am trying to refi (30yrs w 10k cash out) to repair & remodel a bathroom & lower my payment. Currently owe 83,800. My payment would drop from 885 to 661. My appraisal came in less than expected. Now my mtg co says I have to pay upfront PMI because the LTV is 83%. This is deducted from the 10k leaving me only $8,375. Other closing costs = $4,700 + $1,339 prepaids/escrow + 400 pd for lousy appraisal. Am I really paying over 6k to get only 8k???? I have no other means of getting the cash I need and probably not enough equity to get a 2nd mtg. What do you suggest? I haven't agreed to new terms yet. THANK YOU!
hi guest
welcome to mortgagefit
you should refinance only if you are facing financial crunch and not able to afford the current payments on mortgage.if you are refinancing only because you are getting cash payout and reduced monthly payment then i think you are making a big mistake.
if you increase your term eventually you will be paying extra interest to the lender.if it is more than 10k (obviously it has to be,otherwise they won't offer you this proposal) then you are actually loosing more money in long term.
you can use our calculator available on below mentioned link in order to determine how much you would be loosing or earning if you go for refinancing.
we have total 41 calculators so that you can take advantage of it.
http://www.mortgagefit.com/calculators/
dipa
welcome to mortgagefit
you should refinance only if you are facing financial crunch and not able to afford the current payments on mortgage.if you are refinancing only because you are getting cash payout and reduced monthly payment then i think you are making a big mistake.
if you increase your term eventually you will be paying extra interest to the lender.if it is more than 10k (obviously it has to be,otherwise they won't offer you this proposal) then you are actually loosing more money in long term.
you can use our calculator available on below mentioned link in order to determine how much you would be loosing or earning if you go for refinancing.
we have total 41 calculators so that you can take advantage of it.
http://www.mortgagefit.com/calculators/
dipa