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We bought this fixer upper in '02, and after making some improvements
and almost 4 yrs of payments are considering a refinance before rates
start climbing. I called the mortgage broker who got our first loan for
us and was *startled to hear some of the things he said.
-I was told that we only had "about $5K" in equity, though the purchase
price was $89K and the present payoff balance is $81.7
-When I asked about this, I was told that they factor in Zero
appreciation. I can accept that, I guess, if they are just being
conservative. But the math still makes me think we have a bare minimum
of $7.3K .. unless they factored in a negative appreciation?
-I was told that closing costs for the refinance would be about $6K ..
but that $3K of this would come be covered by the current escrow balance
(which really doesn't diminish the cost to me, since that's my money in
escrow)
-I was told that it was not possible to get cash during refinance if
your resulting equity would be <20%.
Anyway, I thought I would ask here whether this is normal or abnormal. All
comments are appreciated.
M
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question on refinance after 3.5 yrs
