Posted on: 19th May, 2010 06:26 pm
we were quoted an amount on a refinance. we want to refinance our home loan of 220,000 at 6% and combine our home equity loan of 41,000 to have a single loan amount of 261,000 at 4.5%. our lender is quoting us on closing costs of around 9,000 dollars and also we were told we would have to pay a goverment mandated upfont pmi amount of +/- 6000.00 as well as a monthly pmi of 114 a month. thus making our total amount we are refinancing approximately 275,000. i was wanting some opinions on these numbers. just wondering why closing cost seem so high and wondering about the upfont 6000.00 for pmi. never heard about that before.
Hi kwt,
I guess you are going for FHA loan to refinance your mortgage. In that case, you would be responsible for paying the upfront PMI as well as the monthly PMI.
The closing cost may vary from time to time. You should note that the fees are generally of three types - Broker or lender fees which may include administration, document preparation, processing fees, Third-party fees such as appraisals, title searches, inspections, etc., and Government fees. You need to check out whether or not the lender is charging anything extra. You can even ask your lender to explain the fees to you. This will help you know whether or not the lender is charging you anything extra.
I guess you are going for FHA loan to refinance your mortgage. In that case, you would be responsible for paying the upfront PMI as well as the monthly PMI.
The closing cost may vary from time to time. You should note that the fees are generally of three types - Broker or lender fees which may include administration, document preparation, processing fees, Third-party fees such as appraisals, title searches, inspections, etc., and Government fees. You need to check out whether or not the lender is charging anything extra. You can even ask your lender to explain the fees to you. This will help you know whether or not the lender is charging you anything extra.