Our credit union just lowered their APR for mortgages to 4.261% and our current APR is 4.75%. I would love to refinance and lower our payments by $20/month but the closing costs are huge. They expect $1,450 for the origination charge and even though I know we paid that to close it bugs me when many companies are giving out lender comps. The other thing that bothers me, is the title search, they want $1,185 for a service they did less than two years ago. I have heard that some companies will do a mini-search and charge less if they have previously done the search. I am going to ask about that. I understand the appraisal fee and the taxes, though, even if they cost about $1000. My credit union has no control over those so I am not going to bother complaining about it.
At this point, as much as I would like to refinance the closing costs are too high even with the great rate.
If anyone has a bank they know with a rate close to this one, with better closing costs let me know in the comments.
I used to work in mortgage at a bank, so I'm not sure if this applies to credit unions as well, but if you are refinancing from a Freddie Mac to a Freddie Mac loan, you might not need a full appraisal or any appraisal at all. This was a few years ago, though, so it may not apply anymore. You can always check with your CU to find out. Good luck!
ReplyDeleteSounds like you are looking at all the right numbers to decide when to go on the refi.
ReplyDeleteI wish I had known Ginger. Calculate what would be extra you will pay if you don't refinance. and compare it with closing cost.
ReplyDeleteyes, somehow you need to arrange the money upfront.