Friday, April 19, 2013

Refinance Updates

Welcome Packet and Closing Costs
My welcome packet came in the mail over the last weekend so on Monday I dropped off all the documents we needed to sign for the new loan...

It also listed out our closing costs and loan fees. Unfortunately they aren't able to match the WAY lower fees I was able to negotiate last time around when I was mortgage shopping, but we think its still a win for us... and here's why.

Estimated Fee breakdown:
Origination Fee: $1,085.00
Appraisal: $435.00 ---Paid Now
Credit Report Fee: $12.00 ----Paid Now
Flood Check Fee: $17.00
Tax Service Fee: $84.00---
Title Services: $926.00
Recording Charges: $175.00
Daily Interest Charges: $32.52

Total: $2,766.52

This saves us $45.63 a month right off the bat,  PLUS we were tossing an extra $54.22 at the mortgage that we don't have to anymore. I feel its okay for us to count the $54.22 as savings because we are going from a 30 year to a 20 year and to get anywhere near a 20 year payoff plan with the mortgage we have now, we would need to pay way more that that $54.22 a month-- so together we freed up $99.85 a month for us...

It will take us about 27 months to break even, or a little over 2 years. We will also be gaining equity a LOT faster which is why we aren't worried too much about rolling the closing costs into our loan... which lead us to the

I got an email on Wednesday to notify me that our appraisal was in... and we made it. Our condo is worth $150,000 which meets the threshold we need to refinance and loose all our icky fees. It wasn't as high as the loan officer thought it would be, but I didn't think it was worth $180,000.... $150,000 seems more realistic when the 2 bedroom units have been going for $180k.

I learned some interesting information from the 26 page appraisal packet.

  • At present, the 124 units that make up the association are 59 owner occupied and 65 renter occupied. 
  • The guy who did our appraisal failed to notice I have a washer/dryer and a refrigerator in our unit... but saw the microwave...
  • There are 7 "comparable" properties for sale in my area right now from $162k - $265k... and 40 "comparable" properties that have sold in the past 12 months, ranging from $100k-235k.
The "comparable" units:
  • In my complex they used a two, 2 bedroom unit and just adjusted their value down $20k for the additional bedroom and another $14k down for the square footage. 
    • The first one placed my unit at $159,000.
    • The second one placed my unit at $125,000.
  • Down the road about 5 miles is another complex. They took tthree properties from here to compare. For each property they took off $4k for the carport and $5k for the complex pool/spa.
    • One was a short sale so they knocked off another $4k and pegged my value at $131,650.
    • The other came in at $158,500.
    • The third at $153,000.
Comments from the appraiser: "Subject is of average quality and appears to be well maintained. Project has proximity to local employment centers and has average market appeal. Inventory of active listings was shrinking in past three months and was limited at the time of valuation." 

I also looked at the pictures he took of our unit and I have to say... our place is going to look photo amazing when it gets time to actually sell our unit!!!

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