Re-Fi to remove MIP question

**ukgaz** · 08-01-2013, 05:18 PM

The total estimated funds to close at $6,738 break down like this

Estimated Prepaid items/reserves - 2563.42
Estimated closing costs - 2685
Discount (borrower paid) - 1208.35

**ashley_s** · 08-01-2013, 09:07 PM

That origination for a 4.875 sounds a little high unless your credit under 700, maybe under 680?

I do mortgages in CA and right now with 0 points it's around 4.625-4.75 depending on credit.

**Keira Clauson** · 08-08-2013, 03:59 PM

Originally posted by ashley_s View Post

That origination for a 4.875 sounds a little high unless your credit under 700, maybe under 680?

I do mortgages in CA and right now with 0 points it's around 4.625-4.75 depending on credit.

I agree, that rate does seem pretty high. I work as an underwriter, and most 4.875% loans are getting a couple of points back in yield spread. I would shop around.

**dawnwes** · 08-08-2013, 07:42 PM

We refinanced in April and paid a total of $400 for the appraisal.

2.65% on a 15 year loan. No points, no fees other than appraisal.

The rates you are getting are very high.

**dawnwes** · 08-08-2013, 07:45 PM

Closing is $6,700 and to get rid of a $125/mo payment?

It will take you close to 5 years to break even.

I would not do it.

I think you can find better.

However, one question.....does that include an escrow fund? That is essentially YOUR money, not a payment.

Originally posted by ukgaz View Post

Looking to Refi our home. Brought home in 2011 for 180k. Rate of 4.875 30 year fixed FHA. Mortgage payment is $1391 which includes Principal and Interest-$928.43 per month, Mortgage Insurance-$125.26 per month and Taxes and Insurance-$337.54 per month)

Now with recent raise in home prices my home is worth around 230k. Outstanding balance is 169k. If I refi I can get rid of FHA MIP which I hate paying.I expect to be in this home for 20+ years.

So new loan/deal is ---

169,000@4.875%-30 year fixed conventional loan-(1 point discount)
Principal and Interest-$894.36 per month
Taxes and Insurance-$337.54 per month
No MIP
Total Payment-$1,231.90 per month

Today I got the initial fees worksheet. Shows total estimated funds to close at $6,738 which would be rolled in to the new loan.

Is this a good deal? The difference between 1391 and 1231 would still be going to the principal.

Thanks

Re-Fi to remove MIP question