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avlism · Joined: 19 Jan 2009 Posts: 1 1.41 Dollars($)

I am refinancing my 80/20 ($168,400 interest only @ 6.25%/$40,500 15 year balloon @ 8%). I'm also getting $16,000 cash out to pay off credit cards. I'm looking at a 30 year fixed FHA @ 5% and 1.75 points. My good faith estimate has me financing quite a bit more than my mortgages and cash out combined ($236,823). $4144 discount points, $2083 prepaid items, $2782 closing costs, $4073 PMI,MIP, Funding fee. There are some manipulations to the numbers on the good faith estimate sheet, but the total to finance will be $236,823 after all is said and done. Are these fees/costs about what I should be expecting to pay? Thanks!

jameshogg · Posted: Mon Jan 19, 2009 9:40 pm Post subject:

Hi avlism,

When a loan is refinanced, the borrower needs to pay the closing costs and other related costs. This is because refinance is sort of a new loan with new terms and conditions. As far as I know, the charges that you are being charged for a refinance will also depend upon the state in which you are living. If you feel that the charges are too high, you may speak to other lenders and check out the terms and conditions that they are offering.

Thanks

Guest

Thank you for your response. I am in washington state. I have done some research and all the fees themselves seem reasonable from what I've read, but then adding them up it looks like it is going to cost me close to $12,000 in fees, up front mortgage insurance, points, etc. to do this refinance. I'm wondering if a refinance to an FHA loan usually costs this much. Even if it does, I think it will be worth it in my situation, I just wince at the thought of paying $12,000 Smile

gmakerley · Posted: Tue Jan 20, 2009 9:02 am Post subject:

they don't look totally out of whack. one thing about interest rates - there are slight variations from region to region, so your 5% might be 4.75% or 5.25% here and yet a different rate somewhere else (for the same pricing).

michael_ueltschey · Joined: 11 Jul 2008 Posts: 15 6.47 Dollars($)

Ask your lender for a rate w/o points.
IMHO you should not be paying any points to refi ever! It usually takes 5 years to recoup the cost of buying the rate down through discount points.

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Refinance 80/20 to FHA. Are these fees reasonable?