2ndTimeAround Posted April 18, 2007 Report Share Posted April 18, 2007 My wife and I are redoing our basement, new floors, walls, ceiling, a bathroom, plus egress window. Price $51500.We both work, credit scores 720/719. Our value 360K - owe $116k on 1st mortgage.The contractor knew a bank we could do a second mortgage with. Got their GFE, it was an eye opener on the closing costs. Looking at a loan of $56500.00 at 6.5% fixed 300mths term.GE Money Bank out of Utah - Loan Origination Fee $375.00Loan Discount Fee $3467.87Credit Fee $00.38Inspection Fee $25.75Settlement Fee $360.00Title Examination $105.00Recording Fees $76.00City/County Tax $135.25State Tax $402.80Total Fees $4947.25Spoke to other banks reqarding equity loans, rates ranged 7.25% to 9% with no closing costs.I understand about buying down the rate, for the loan amount these charges same high? Link to comment Share on other sites More sharing options...
firstsource Posted April 18, 2007 Report Share Posted April 18, 2007 I would suggest that you go with a "no closing cost" deal, as long as you are aware that if you refinance/pay off that loan they will make you pay some closing costs back, appraisal-title-etc, probably until 3 years is up.If you do the math, saving 1% in interest and paying 3400, will take you a long time to "break even".Charles Link to comment Share on other sites More sharing options...
2ndTimeAround Posted April 19, 2007 Author Report Share Posted April 19, 2007 Thank you - this morning spoke to a direct lender, 6.8% 30yr term $889 closing costs.Going to send more than the required payment to reduce interest and term...... Link to comment Share on other sites More sharing options...
woody Posted April 21, 2007 Report Share Posted April 21, 2007 your best bet is to go to a local bank they will in general have no closing cost Link to comment Share on other sites More sharing options...
2ndTimeAround Posted May 9, 2007 Author Report Share Posted May 9, 2007 Went to my local bank to have closing paperwork notorized yesterday. They asked me if I was doing the loan through them. I told them their interest rate was almost 1/2% higher. She didn't say anything.Sent back docs via Fedexp.2nd Mortgage - Loan Amount $70,000 30yr fix @6.8% $889 closing closing costs - 3yr prepay.The Mrs and I are taking out alittle bit more to fix the upstairs bathroom as well.Planning to double pay payment to reduce term, lower the net effective rate, and keep our credit scores in the 700's...5/8/07 - 720/750/724 Link to comment Share on other sites More sharing options...
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