I have a 30-year fixed loan at 5.25%, of which I still owe $184,000. Current payment is $1463/month including PMI, escrow, taxes, etc... and I've been in this loan for 2 1/2 years. Current appraised value of the home is $210,000.
Quicken Loans is offering me a "free" FHA refinance to 30-year fixed at 4.00% The paperwork they sent me looks like this:
R,,,,,,,,,,,,,,,,,, Payment Comparison ,,,,,,,,,,,,,,,,,,,T
. Description Proposed Present .
. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .
. First Mortgage P&I or Rent $879.37 $1,060.45 .
. Other Financing P&I $0.00 $0.00 .
. Homeowner's Insurance $32.83 $32.83 .
. Real Estate Taxes $283.78 $283.78 .
. Mortgage Insurance $179.57 $86.16 .
. Homeowner Association Dues $0.00 $0.00 .
. Other Escrows $0.00 $0.00 .
. Leasehold fees $0.00 $0.00 .
. Debt Paying Off $0.00 $0.00 .
. -------- -------- .
.Housing Payment Excluding Debt $1,375.55 $1,463.22 .
.Present Housing Payment Including Debt $1,463.22 .
. .
.Total Payment Decreasing w/Paying off Debt $87.67 .
.Housing Payment Decreasing $87.67 Pmt Shock 94.01% .
F,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,G
R,,,,,,,,,,,,,,,,,,,,,,,,,,, Details of Transaction ,,,,,,,,,,,,,,,,,,,,,,,,,,,T
.Payoff of Mortgage(s) $184,277.00 .
.Payoff of Other Debt(s) $0.00 .
.Property Taxes Owed $0.00 .
.Adjusted Origination Charges $0.00 .
.3rd Party Costs(GFE Lines 3-8) $4,250.41 .
.Prepaid/Escrows(GFE Lines 9-11) $1,936.05 .
. .
. Total Costs $190,463.46.
.Total Loan Amount $184,192.00 .
.Actual Good Faith Deposit $0.00 .
.Lender/Promotional Credit $3,925.29 .
. .
. .
.MIP Refund $397.32 Less $188,514.61.
. Act Cash From Client $1,948.85.
F,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,G
They're telling me the cost of the refi is offset by the $3925.29 credit they offer plus the $397.32 MIP refund, so there is no cost out of pocket. They want me to pay $1,948.85 into my new escrow account and when my old escrow account is closed I should receive a check for $1936.05 (its current balance).
Does this deal make sense? Why is my mortgage insurance so much higher on the new loan?