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Hello everyone. I'm interested in refinancing my home. I've a 30 year
fixed-rate mortgage at 6.00%. My PITI payment is $1717.00. The initial
loan value was $191,700. After 1.5 years, I owe ~ $188,000. I'm
interested in refinancing down to 20 years, for the sole reason of chopping
the 8.5 years of my mortgage. I lender friend of mine says that I can get a
20 year note at 5.125 from him. He says his company can only do that by
charging me 1.5 points. All in all, he gives me a high estimate of 7000 in
closing costs, which would be rolled into my new note. So my new note would
be for 195,000, at 5.125%, for 20 years. My principal and interest alone
would go from 1150 a month to 1300 a month, however, I'd drop PMI by
reapprasing, so my monthly payment would only grow by ~ $50.
Does this all sounds reasonable to everyone? The only thing that sticks out
to me is the $7000 closing costs. It seems high, even including the 1.5
points.
Thanks.
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Refinancing Question
