"Jonathan Clay: I actually meant the number of points added to the rate to pay for cash out. I am pay a 0.5% origination fee to my bank for a par rate....So I am wondering how much the premium is specifically to add the cash out portion to the loan amount - as a percentage or portion of a percentage. Thanks for your help in advance. depends on the loan to value and credit score. FNMA (fannie mae) introduced "risk-based pricing" hits i believe early 2008, meaning that at certain loan to value..."    View Post

"Jonathan Clay: What is the typical cost for a cash out refinance? I just charged $100,000 dollars on one. As you can see, it's relative to the loan amount. Typical closing costs are 2% of the loan amount and this number should include all fees."    View Post

"I'm sorry, but the break even point is not 2 months, it's 2yrs. 1/2 pt is 1/2 point, regardless of how you look at it. So, lowering your interest rate .25% (from 5% to 4.75%) means that in the first year, you will pay .25% less interst in that year, or .5% in interest in 2yrs. If you can say beyond a shadow of a doubt that you will be in the home for a length of time, pay the points to get the rate down. Finally, don't sit on standby waiting for rates to go lower. I can't tell you..."    View Post

"Yes, good deal. That 1% origination is a "point", btw... You know, I just looked. I can give you the exact same costs at 4.625% 30yr fixed. For what it's worth, you aren't getting a bad deal but as I've shown, you can do a little better."    View Post

"You're going to have to revert to your contract for the accurate answer. Real Estate contracts often have verbiage protecting both parties in cases such as this. If you didn't meet your deadline to close on the 20th, would you expect the builder to ask you for additional money? The answer is in the contract."    View Post