Financing in 11427>Question Details

Confused Ref…, Other/Just Looking in 11427

is it worth it refinancing my mortgage! i have 1st mortgage 333,000 at 5.75% and 2nd $187,000 at 7.50 both fixed rate for 30 yrs.

Asked by Confused Refinancing, 11427 Fri Oct 22, 2010

my lender is offering me to combined my 1st and 2nd mortgage ($521,000 in total) to FHA refinancing with 4.375 fixed rate for 30yrs with my total loan will be $ 540,750 including closing cost. my closing cost was almost
$22,000 and im not sure if all the fees are legit! please help!!!!!!!!

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Christy Schwartz’s answer
That does sound a bit high. Are they adding in points to get that 4.375% rate?? They may be buying down the rate and not telling you about the points cost's in getting that rate. My company is offering a 4.5% fixed 30 year FHA rate with NO points. Depending on interest, taxes, insurance and title cost's we could cut your cost's in half for the loan. Please email me or give me a call to discuss further details.
0 votes Thank Flag Link Mon Oct 25, 2010
As a Realtor, I make it my business to focus on real estate, not mortgages, so my best recommendation is to speak with a mortgage broker. I am just doing a refi on my primary which is at 6.37 and an equity line, currently at 2.73 and it seems to make sense.

I will gladly offer you my mortgage broker.

The mortgage broker who just did my daughter's refi (and saved her $600/month) and is working on mine, is Dominick Sutera of Academy Mortgage Corp. I am sure he can answer this question for you. You can reach Dom at 516-655-2900 or email him at
Web Reference:
0 votes Thank Flag Link Fri Oct 22, 2010
Hi Confused, adding closing costs to your mortgage is kinda defeating the purpose of lowering your payment. The idea is to reduce the rate and amount if possible. The $22,000 closing cost is mostly the mortgage tax which over 500K would be 2.175% of the mortgage loan (almost $12K) they are charging you an addiitonal 10K for other fees....sounds very high to me!!. I don't know what your taxes are and if they are included in your monthly 11427 assuming you pay $3600 yr. in taxes-your new mortgage paymnt would be $3000.00 a month. You are probably paying approx $3550 w tax for a NEW 30 year. How long have you had your other loans??

What is your home worth?-will it appraise? Just some thoughts... Terry K 718-614-3167 cell or email me
0 votes Thank Flag Link Fri Oct 22, 2010
You can certainly benfeit from this much lower interest rate. However, things to consider 1. How long have you been paying on these? When you originally take out a loan most of the payment in the first few years goes directly to interest. The longer you've been paying you'll notice more going to the principal amount you owe. 2. Always shop a bank/mortgage broker like you would anything else. Don't just check out one always at least two. Sometimes more than that can effect your credit score (which is absurd). 3. Always ask for a truth and lending statement from each. This way you can go line for line compare apples to apples and see what they are charging you for. That being said the fee sounds absolutely ridiculous and way over the norm. Best of luck
0 votes Thank Flag Link Fri Oct 22, 2010
Wow those fees are pretty high. I would contact another lender and get a quote. Know your middle credit score so they don't re-pull your credit.

Best of Luck,
0 votes Thank Flag Link Fri Oct 22, 2010
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