Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
27,881
# of Forum Posts

You do not have permission to post in these forums.  Join Now or Sign In to post.

Page 1 of 1 (5 items)
Post Statistics: 463 Views, 4 Replies
Latest Post: Sun, Mar 14 2010 7:40 PM by Marva
  • Sun, Mar 14 2010 2:34 PM
    Loan Scenario

    Do these numbers sound right?

    Refinance from 6.5%

    Loan amt $191K

    Home value $197,500

    Interest rate 4.875

    Origination charges $2556. Is this charge paying for points?

    settlement services $7723. Is this closing cost?

    total settlement charges $10279.

     FHA loan.

  • Sun, Mar 14 2010 5:48 PM

    The settlement services includes your escrow set-up, title and other closing costs, and your upfront FHA costs. This seems roughly what I would expect.

    The origination is the number to focus on. It looks like you are paying a point to get the rate plus some kind of lender processing/underwriting fee to make up that $2556.

    If your scores are 700+ you might be able to find a bit better on an FHA file, but the number is certainly reasonable. If you already have the appraisal done and are ready to close, go for it. If you are early in the process, make a couple phone calls to reputable providers and compare apples and apples.

    What are your long term plans for the house? If you plan on staying for 10+ years this is a good deal compared to your currrent mortgage. If you are going to be in the house for 5-9 years, you might consider an FHA 5/1 ARM. This would be fixed for 5 years at something between 3.5% and 3.75% with little or no origination charges at all. At the end of 5 years the maximum that it can increase is 1% each year. I mention this product because the costs are likely lower and the amount of time needed to recoup what you spend is much faster. For roughly 9.5 years this loan is cheaper from a total cost prospective than the fixed rate even in a worst case scenario with the rate adjusting up. So you would need to feel confident that this isn't the house you plan to retire in, but if the timing is right for you this might be a good opportunity to see more dramatic savings numbers.

    Good Luck,

     

    Jason

     

     - View My Profile
    Mortgage Consultant
    PNC Mortgage, A Division of PNC Bank
  • Sun, Mar 14 2010 7:35 PM

    Thanks Jason!

    Our scores were just below 700. We already had the appraisal done and it was alot lower than we anticipated.

    We are suppose to close march 22nd.

    We plan to live 10+ years in this home.

  • Sun, Mar 14 2010 7:37 PM

    I would go ahead and close with what you have...it is a fair offer...Good Luck!

     - View My Profile
    Mortgage Consultant
    PNC Mortgage, A Division of PNC Bank
  • Sun, Mar 14 2010 7:40 PM

    Thanks sooo much for your time and input!!

Page 1 of 1 (5 items)
X
Track Mortgage Rates Daily with our Free Daily Rate Updates. There are several ways to follow daily rate movements, including:
Email Address:   Zip Code:  
RSS - Subscribe to our Daily Rate Update RSS Feed.
Twitter - Follow our Daily Rate Update on Twitter.
Facebook - Follow our Daily Rate Update on Facebook.
Bookmark - Bookmark our rates page and visit daily for updates.
Mobile Apps - There's an App for this too. Learn more about our Mobile Apps.