Grumble Grumble…
I saw this on the MSN Smart Spending Blog yesterday and started to get all sad because apparently the FHA will be hiking up their monthly MIP insurance from 1.15% to 1.25% starting April 1st for all new loans because they don’t have any money.
If you remember back to my old post, Refinancing will never happen, SCB and I have been looking into refinancing since rates have plummeted and we are currently paying 5.25% interest each month…
But despite getting tons of “no cost refinance letters” in the mail, we have been told flat out told that it’s not in our best interest to refinance because we got our loan before the FHA raised their rate the first time around. (So any savings in the interest rate we would get would be eaten up by the how higher MIP payment)…
But then I saw this and got hopeful...
I started to get really excited…
Until I noticed that you had to have purchased your home on or before May 31st, 2009… I bought in October of that year.
L Now I feel just plain cheated L
Does anyone know if banks are willing to do refinances the old fashioned way and how much they are going charge in closing costs?
I know we would have to get the home appraised... and I think it will appraise for $115,000- $120,000 (probably $115,000 though) and we owe $112,3000 right now...
mortgage101.com has some good calculators for refinance costs. We took our 30 year to a 20 year a couple of years ago. It cost $4,000 - $5,000. Some of it gets mixed back into the loan and then since you have to basically start your escrow over, you get a refund of your old escrow. I think our house appraised at $380,000 and we owe $240,000 on it.
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