Hello,
I am looking into taking advantage of the low rates to refi on my mortgage.
I owe $248,000 at 5%. I estimate the house is worth $300k.
I currently am paying $2128, which includes Insurance, PMI, & Taxes.
I have been quoted through my credit union:
Credit Union's origination charge $8,000.00
Application Fee $300.00
Delivery Fee $7,500.00
Loan Processing Fee $200.00
Your credit for this interest rate ($3,750.00)
Required services we select $1,790.20
Appraisal Fee $550.00
Credit Report $19.70
Flood Certification $12.50
Tax Service $83.00
Title - Lenders Title Insurance $425.00
Title - Settlement Agent/Closing Fee $575.00
Title - Survey Endorsement $125.00
Government recording charges $151.00
Fees paid in advance $729.17
Interest Due at Closing $729.17
Initial escrow deposit $966.66
Property Tax Escrow Deposit $966.66
Total Estimated Settlement Charges $7,887.03
It should take about 2.5 years to break even while reducing my monthly payments by ~$500 and removing the PMI from the loan.
Is this a good option, I am waiting to hear from two other sources for their rates.
Is there anything I need to worry about or look into further before pulling the trigger?
I see some people do a cash out option and what have you, should I bump up the amount borrowed and take some of the equity and pay off some lingering loans?
Thanks in advance!