Posted on: 28th Dec, 2009 09:12 pm
i have a loan balance just shy of 400k at a fixed 6%. my loan is a 30yr fix 10yr interest only. i want to refinance to lower my payment. i have a freddy mac and am upside down. i am not sure what my home is worth. one guy(i think he is a lender he said they do it all) offered me 30yr fix 5% and supposedly no buy down (all under then notion i would come in at the 105% loan/val). however he said closing cost would run me around 8k. app fee and 1% would go to them and then the bank etc have their fees. it just seems like a lot of money. what should i expect in my situation? btw i am in california if that makes a difference
Hi roxy,
$8k is closing cost is quite a lot of money. But if you are going for a loan with no down payment, you are likely to pay a good amount of money at the closing. The interest rate on your loan is also expected to be higher than normal if you do not make any down payment. I think you should shop around a bit and check out what other lenders can offer you if you refinance the current loan at a lower rate. You can contact some other local lenders and go for a no obligation free mortgage quote with the lenders in this community. This will give you an idea about what type of interest rates you can expect to get and how much closing cost you may have to pay for the refinance.
$8k is closing cost is quite a lot of money. But if you are going for a loan with no down payment, you are likely to pay a good amount of money at the closing. The interest rate on your loan is also expected to be higher than normal if you do not make any down payment. I think you should shop around a bit and check out what other lenders can offer you if you refinance the current loan at a lower rate. You can contact some other local lenders and go for a no obligation free mortgage quote with the lenders in this community. This will give you an idea about what type of interest rates you can expect to get and how much closing cost you may have to pay for the refinance.
There is no downpayment, this is not a purchase.
This is a refinance permitted under the Home Affordable Refinance Program (HARP) which permits refinancing when home values have dropped below the point where one could normally refinance. In this case, the Loan to Value is over 100% and one could not normally refinance with LTV over 95%.
Closing costs can be $8,000. They would be typically in New Jersey, so, I guess they could be in California. Most of the $8,000 is for paying taxes and setting up the tax escrow account. The actual mortgage costs for fees (appraisals, etc) is probably around $3,500.
This is a refinance permitted under the Home Affordable Refinance Program (HARP) which permits refinancing when home values have dropped below the point where one could normally refinance. In this case, the Loan to Value is over 100% and one could not normally refinance with LTV over 95%.
Closing costs can be $8,000. They would be typically in New Jersey, so, I guess they could be in California. Most of the $8,000 is for paying taxes and setting up the tax escrow account. The actual mortgage costs for fees (appraisals, etc) is probably around $3,500.
