Costs Of Refi Vs. Purchase MTG. ?
Sorry if wrong forum for the question....
I am considering refinancing and cashing out up to 75-80% LTV on my own home.
Speaking with a couple of mortgage brokers, they tell me that costs and interest are higher on a refinance mtg. than on a purchase mtg.
Is this typical?
Why?
And I resent the bump for refusing escrow. Credit is spotless, 790-800 score. Can I stand my ground and prevail?
TIA,
[addsig]
Quote:
On 2005-02-06 09:06, mikejaquish wrote:
Sorry if wrong forum for the question....
I am considering refinancing and cashing out up to 75-80% LTV on my own home.
Speaking with a couple of mortgage brokers, they tell me that costs and interest are higher on a refinance mtg. than on a purchase mtg.
Is this typical?
Why?
Higher on a refi? No. A cashout refi? Yes it can be higher.
The lender is taking a risk that you will take the money and run. Brokers and lenders also know that people will pay a higher rate to get the cash.
If a refi will get you a lower rate do a no cash out refi then get a HELOC from a bank. Then you get the best rates.
Quote:
And I resent the bump for refusing escrow. Credit is spotless, 790-800 score. Can I stand my ground and prevail?
TIA,
This is a bump from the lender. So pay it or do the escrow. Not all lenders have it but the ones with the best rates do.
The lender does not want to step up the plate at a tax lien sale.
Do check into a HELOC. The cost to get them are cheaper than a refi.
Get one do the work then do a no cash out refi to pay it off. At that point you should have a low LTV so then you should get a great rate. For whatever type of program fits your needs.
At 80% LTV with your score you should have no problem getting a HELOC.