Quote:
Originally Posted by krystar
the loan officer mumbled to herself that the closing costs was 4k that was going to add into the new loan.
so i'm taking my existing balance (27yr remaining) + 4k to new 30yr term fixed at new rate 4.5%.
now that i type that out, it does't seem to be that good of a deal
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4.5% sucks in this environment. But to be technical remember
1- you will SKIP a payment, so you subtract that from the closing costs
2- Taxes and insurance which they will charge (as part of the closing costs) are offset - you will get a refund from your old lender upon payoff so that needs to be accounted for as well. Look at the back of your existing mortgage statement to see how much that is.
3- remember to make your OLD payment to the new loan.
4-Taxes and insurance are for your benefit, so technically they can't be considered closing cotss..
So, ask the Loan officer how much the NEW loan amount is, SUBTRACT ONE PAYMENT, then take that amount, the new interest rate, and OLD payment and see if it pays off sooner than 27 years.
PS it seems that rate kind of sucks esp. if the closing costs are being charged... But, I'm not watching lately.