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Dillydeb1 · Joined: 28 Feb 2009 Posts: 1 1.41 Dollars($)

I am trying to refinance my home and I owe 223,000, I also have a "lein" to pay my ex 43,500 when my son is emancipated. This brings what I owe to 105% of what my home is appraised at. I was told I would have to pay 3 and a half points ($17,000) to be eligible to get this loan. My debt to income ratio isn't great, but I've never been late on a mortgage payment, and I pay my other bills on time too. I just want to get out of a bad decision I made a few years ago. I'm paying 7% interest only and the rate will change in a few more years. I feel like I might be being taken advantage of, but I know I'm not in a very good situation. I would be grateful for some 3rd party advice.

jameshogg · Posted: Sun Mar 01, 2009 12:28 am Post subject:

Hi Dillydeb,

$17,000 is a huge amount. If you feel that you can afford to pay this amount as well as the other costs in order to refinance the property, then you can go ahead with it.

Whether you should refinance the property or not will also depend upon whether you are interested to stay in the property for a long period of time. If not, then you shouldn't go for refinancing the mortgage.

Thanks

evolovik26 · Posted: Sun Mar 01, 2009 10:43 pm Post subject:

Its a little confusing as to what you are trying to do and what is being asked f you.
Is the 43,500 "lien" to your ex really a lien or is it something you owe and doesn't affect you LTV? And will you have to pay it off as part of this refinance?
Because there are no loans out there that allow for 105% financing, especially on cashout loans
And 3.5% of your loan amount would be less then 10k not 17k?
Are you talking about points, cash to close or cost of the loan?
What kind of loan are you trying to get?

Seems like you owe 223k + 43k you owe your husband = 266k = 105% of your home value of 254k

The best cashout loan you can get is FHA at 95% of the home value 241k - 6k or so in closing costs = 236k

Ammount you need 266k - ammount you can get 233k = 33k to close.

So as you can see what you are saying doesn't add up.

Let me know what information I'm missing

gmakerley · Posted: Mon Mar 02, 2009 10:29 am Post subject:

kudos to you, once again, eugene.

i would have to say the only way in which there would be 3.5 points on an fha loan in the current environment is if the interest rate being paid is 4% or less.

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Should I have to pay 3.5 points on this fha loan/refi?