Refinancing Costs
Here’s the situation. I would like to refinance my apartment mortgage and HELOAN. The details are: Property type: 1 bed condo Outstanding balance: Total: $282K; split HELOAN: $45K + Main: $237K Current rate: HELOAN: 7.85% + Main: 6.375% Home’s present market value is: I’ve had 4 realtors in the last month tell me they would…
Here’s the situation. I would like to refinance my apartment mortgage and HELOAN. The details are:
Property type: 1 bed condo
Outstanding balance: Total: $282K; split HELOAN: $45K + Main: $237K
Current rate: HELOAN: 7.85% + Main: 6.375%
Home’s present market value is: I’ve had 4 realtors in the last month tell me they would put it on the market for between $370K – $330K. I know that to get the magic 80% loan to value ratio the apartment needs to be appraised for $360K, but I think it would be appraised for $340-350K.
My aim for refinancing is to lower my monthly payments. Ideally I would combine the two, but from my preliminary research, if I do so, and the apt is valued at $340K then I’ll have to pay PMI so I’ll end up paying about the same each month as I do now.
Oh and the other thing is that I’m completely broke, so all fees need to be rolled into the loan. Great – right?!
On the plus side, my credit score is 800.
I’m embarrassed to admit that I’m completely overwhelmed by the whole process. It was a miracle I managed to deal with all the jargon and figures when I bought, but as I have NO money, I don’t have the small safety cushion I had then.
As money is super tight, the person/broker/bank that I give about $400 to for the appraisal is almost certain to be the one I go with. But as money is super tight, I’m worried about what fees aren’t/can’t be rolled into the loan. Can anyone tell me, do I have to pay a lawyer at closing? I assume so. That’ll be a flat fee of about $1500 right? Any other fees?
All help/advice is much appreciated!
PS- I will beat Citi’s deal and refinance it with Citi! As a broker we can beat the bank. Todays rate on a 30 Year Fixed is 4.75% on a fixed rate and 4.50% on a 20 year. You do not pay the attorney- it gets wrapped up into the loan.
Thanks again. Vanessa ….
I am a broker and you have options. Please call me to discuss. We can figurethis out and get the whole thing closed in under three weeks. I am here 9am-9pm.
Vanessa Thatcher
ATLANTIC HOME CAPITAL
Tel: 631-687-3510 x106
EFax: 631-918-5222
Cell: 631-672-4113
If you use your current bank, you should be able to save one attorney fee, and the one you have to pay should be able to be rolled-in. I would think your out-of-pocket expenses could be as low as $500 or so, depending on what your condo charges you for producing some of the required ppwk.
did you talk to your current bank? think this would probably be the cheapest in terms of fees. if this doesn’t get you anywhere, i’d look at a good mortgage broker that can help you navigate this. it’s gotten a lot more difficult, so having someone do the legwork for you helps.
Thanks for your thoughts. I think I will probably end up just re-fi-ing thru’ Citi who have the mortgage at the moment. I’m sure a more savvy buyer might get a better deal elsewhere, but it’s just easier, and hopefully it’ll be worth it in the end.
If I just have to pay for the bank’s attorney and nothing else (after paying for the appraisal/application fee) then its ok.
Too bad it’s a condo… I think refi’s are WAAY cheaper on a co-op. I recently did a refi on my co-op (similar situation- I put 10% down originally and had a home equity loan for the other 10% to avoid PMI, and my apt is in the same price range as yours). I did put some cash into my place when I bought it 4 years ago, but I was still worried about the 80/20 LTV. Anyway, I used Citi, and the only thing I had to pay out of pocket was $450 (or so) for the appraisal, and it was actually appraised at a 68% LTV, which was pretty surprising. My total costs rolled into the loan were less than 3K (lawyer fees were included) and my break-even point is less than 6 months.
If the math works, do it.
Well take a deep breath.
Last time I had an appraisal /re-fi done the guy asked me which number I needed and I got it.I was also trying to eliminate PMI. It wasn’t too off but he placed the value on the high end rather than a conservative end. Sounds like you don’t need too much to get your numbers to be what they need to be so ask him if he can do this.
Also when I did a re-fi I used the bank’s attorney. When I bought I hired my own attorney but there was nothing untoward about the re-fi so I just went with them and didn’t hire an attorney.
I hope your rate is at least 5%.That will be a nice savings.
A HELOC has a much lower rate; you could also consider that to replace the HELOAN rather than rolling that into a 30 year mortgage.So you would refi $237,000 @5% 30yr. fixed and $45,000 @2.99%.
lastly have you looked at Communityworks mortgage product with HSBC?that typically has the lowest rate but they wouldn’t allow a secondary mortage.
Good luck!
Good luck.