wtf closing costs!

[mizzou]

My bank wants $4500 to close on a refinance of a $100k mortgage

Daaaamn

How the hell is that justifiable? Freakng appraisals are $150 and paperwork cant cost much more then that

 

[olds]

Use someone else?

 

[alfa147x]

My bank wants $4500 to close on a refinance of a $100k mortgage

Daaaamn

How the hell is that justifiable? Freakng appraisals are $150 and paperwork cant cost much more then that

Over the life of the loan how much are you saving by refinancing?

 

[Capt Caveman]

That's why you need to comparison shop. The rate is not only thing that you need to take into consideration.

 

[drebo]

How long do you plan to stay in the house (x months) and how much do you save per month (y dollars/month) by refinancing?

If x * y > $4500, then it's a good deal. If x * y < $4500, why are you trying to refi?

 

[purbeast0]

the closing costs on our home purchase of $345,000 is estimated to be around $12k.

sounds kinda on par for your rates considering the amounts.

 

[ichy]

$4500 is pretty high. The best offer I've gotten is closing costs around $2k for a $155k refi.

 

[CPA]

Here we go again. Maybe you should be marching with the rest of the "whoa is me" crowd today. If you don't like it, go somewhere else OR don't refinance at all.

 

[Texashiker]

I want $1,000 complaining cost.

 

[mizzou]

Over the life of the loan how much are you saving by refinancing?

I can pay my remaining balance due in full early in like 7 years.

So if i was crazy enough to refi with my credit union, and im not, it would take two - three years to get my refi money back.

Add into less paid into principle from new 30 year mort. Then maybe id start breaking even after four ears.

All is for naught anyway because i no longer have 20% equity, just curious at rates with my local credit union

 

[CrazyAznDriver]

I want $1,000 complaining cost.

can we get the same from you? We would all be rich lol

 

[FoBoT]

they want something ($) before you stop paying and go into foreclosure

 

[mizzou]

Here we go again. Maybe you should be marching with the rest of the "whoa is me" crowd today. If you don't like it, go somewhere else OR don't refinance at all.

I dont need to refi, i was just curious and amazed how high the costs are

/sympathy not needed

 

[sactoking]

Closing costs are often used as hidden points; they allow the refinancing bank to make their required ROR while offering a lower stated APR.

 

[ThePresence]

whoa is me

Wow.

 

[spidey07]

Sounds like you're paying points or something else. Actual closing costs shouldn't be that high.

 

[EagleKeeper]

One wanted an extra 3500 because the VA was tied to my primary. 2&#37; up front for VA paperwork to save 2% on rate. Payments would drop a couple hundred.

Advantage on redo is that you already are in the door and you can tell the shafters where to go.

 

[blinblue]

Another thing to consider is the relative costs of paying it off quickly. Say your interest rate is currently 6&#37; on that $100k and you could pay it off in 10 years (that's a $1110/month payment). Over the life of the loan you would pay $33,224.60 in interest.

Now lets say you refinance at 4% and a 30 year. The monthly payment is $477.42, and if you do the full 30 years you'll pay over $70k in interest (plus the $4500 in closing costs up front). However if pay extra each month (say an additional $622.58 to get it up to the $1110 from before) you'll pay off the loan in 9 years and only pay $19333.41 in interest. For a total cost of $4500+$19333.41=$23833.41 (well, I suppose you should consider the future cost of $4500 paid now, but let's not complicate things too much).
The numbers look even better for a 15 year since the rates are so low for that. At 3.25% and paying extra to get to that same $1110 you'll only pay $13380.45 in interest.

So with the number I gave it does make sense to refinance if you plan to stay in the house that long. With different numbers and different plans it might be cheaper to just apply that $4500 costs right at your current principal.

 

[JTsyo]

Here we go again. Maybe you should be marching with the rest of the "woe is me" crowd today. If you don't like it, go somewhere else OR don't refinance at all.

I'm refinancing through my bank and they offer some partial point discount so the closing costs are only $1600. Isn't Valley National Bank offering $500 closing costs? seems it's only NJ/Pa

 

[Wyndru]

Is this including escrow balances and taking into account that you might not have to pay a month's mortgage while it's being processed? Shop around, but that is not that abnormal depending on your area.

Every time we have refinanced our $185k mortgage it's been 6-7k closing (3 different companies we have closed with, and we always shop around).

 

[vi edit]

Is this including escrow balances and taking into account that you might not have to pay a month's mortgage while it's being processed? Shop around, but that is not that abnormal depending on your area.

Every time we have refinanced our $185k mortgage it's been 6-7k closing (3 different companies we have closed with, and we always shop around).

Yeh, have them give you the good faith estimate of settlement costs. I'm guessing you have a 45 day interest payment lumped in and some escrowed fees for taxes and insurance as well.