Can someone tell the costs of refinancing a mortage?
I am assuming this is what goes on:
-decide to refinance
-bank inspector walks through house and determine value for bank
-meet with bank and lawyer and sign over mortgage to new bank?
-pay lawyer (about 400)
-pay other random closing costs (2% of loan value maybe?)
Are there other things that are missing? I am deciding whether to keep my mortgage and pay off a hefty chunk so I don't have to pay PMI anymore (we have FHA and have to pay off 32% of value) and deal with the bank which is the worst bank ever Vs. refinancing and getting rid of PMI, by getting non FHA loan (we have payed over 20% of the house value) and having a bank we prefer to deal with. However money would be lost for lawyer and closing costs.
Also we have done alot of improvements to our house and this may mean increase in value and taxes (as the bank requires an inspection)
The current bank we go through is SO frusterating. I just called and was told that we would always have to have mortgage insurance, which I KNEW was wrong. Then I called back and got totally different answers. This is after I had to go through an hour long prompt about picking what number on the phone for this and that. ugh!
We have all our other loans and accounts through the "nicer" bank and it would also be nice to consolidate and have automatic payments.
The interest rate would not be too much different between the current mortgage and new rate because we have an ARM.