You need to hold the property longer than the 24 months to make it worthwhile.
Neena Vlamis (president)
A & N Mortgage Services, Inc.
Tel: 773-305-LOAN (5626) ext. 104
You are looking at it the right way,, here are my comments.
1. the charges are a little high, and you should go back and ask if they will lower the fees.
is this your current lender or someone you approached about the refi? these days for some, gettgin a refinance on an investment property is tough. I can promise some of the lenders who frequent here on Trulia will offer to take a look and see if they can do better. This sounds like it might be an FHA loan, is it?
2. If you are planning on keeping the building for more than two years, no matter what, get that rate down into the low 4% range while you can.
One more question I have not seen put forth here is how old is your current loan? You will be trading down an interest rate but increasing the time to pay the new loan off. If you have paid on the old loan for 7, 8 or 10 Years you will loose that time. Amortized loans have you paying the same amount each month but as time goes one you will be putting more and more towards principle.
Ask your lender about how this new 30 year loan will effect the total paid in principle over the time you will own the property.
Deb Russcol, GRI
It is hard to say if these costs are extensive or not - but at first glance this looks a little high. However without knowing further details its hard saying. What type of property is this? How much is the property worth? what is your current credit score?
All of these factors will effect your interest rate and fees. If you would like a quote for comparison please feel free to call me and I will be happy to help.
Senior VP of Mortgage Lending