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rose825
Best Friends
Member since 6/05 10228 total posts
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second thoughts on refinance- 1 day to cancel
Oh my goodness I am so upset about this and I dont know what to do.
Basically a couple months ago I started a refiance to pay off my first mortgage (6.5%) and then pay down my HELOC (fixed at prime but now 7.75% and rising) and cash out to redo my kitchen. My broker told me "all of the fees" then and while I cant find where I wrote them I know it was alot less than I was told at closing on Friday (about 7K). So in the end we dont even have enough $$ left to do our kitchen. Plus
I could swear she initially told me we were locked in at 6% only later to be told we couldnt lock in then because of a missing doc, so we locked in at 6.25% (not too big of a deal)
I could swear she told me she charges 1% and she charged me 2%, although I have spoken to her and she says she will give me 1% back.
BUt that still leaves us with a cost of $5500. I only had 21 years left on my motgage and now I have 30 again.
I have the right to cancel by tomorrow, but I will lose some of the fees I already paid (about 1K).
I feel sick about this and dont know what to do. DH is 100% uninvolved in this sort of thing and I am always in charge of finances. At the closing he said are you sure yhou know what you are doing? At first I did, but now I am not sure.
Sorry this is so long but I am honestly sick about this and dont know anyone who can give me good advice. Help please!
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Posted 5/29/06 7:36 PM  |
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newhome
LIF Infant
Member since 5/06 95 total posts
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Re: second thoughts on refinance- 1 day to cancel
eta: Ugh- sound so stressful!
Wish I could help, but all I can offer is hugs. I don't know the first thing about this type of thing, so here goes.
I know you will make a sound and calm decision.
Message edited 5/29/2006 7:55:09 PM.
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| Posted 5/29/06 7:50 PM |
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Maathy317
Grammie's Little Man
Member since 2/06 3235 total posts
Name:
D
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Re: second thoughts on refinance- 1 day to cancel
If you are that unsure and are having second thoughts, then, maybe, the best thing would be to cancel. Let your broker know why and then regroup. Better to lose $1,000 now than to lose much more later. Good luck to you!
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| Posted 5/29/06 8:45 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
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Re: second thoughts on refinance- 1 day to cancel
agghh. I was so sure a month ago. I have been playing with some amortization calculators. If I continue to pay what I am paying now monthly then I can be paid off in 21 years and get a kitchen. Hopefully in the future I will be able to pay more. So I guess that is what I was thinking. I feel a little better. Thanks for letting me talk it out.
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| Posted 5/29/06 8:56 PM |
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jaysee00
LIF Adult
Member since 3/06 1647 total posts
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Re: second thoughts on refinance- 1 day to cancel
First, That sounds very overwhelming.
Now I really don't have advice, but if it were me, I would probably just back out of it in fear of making a mistake. But that's just me. 
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| Posted 5/29/06 9:12 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: second thoughts on refinance- 1 day to cancel
if your first mortgage is at 6.5% and your new one would be at 6.25%, you really need to sit down and do the math and see if it would be worth it. you might just be better off sending in a little extra principle each month and being done sooner.
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| Posted 5/29/06 9:40 PM |
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rose825
Best Friends
Member since 6/05 10228 total posts
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Re: second thoughts on refinance- 1 day to cancel
Posted by Karen
if your first mortgage is at 6.5% and your new one would be at 6.25%, you really need to sit down and do the math and see if it would be worth it. you might just be better off sending in a little extra principle each month and being done sooner.
if it was just the 1st mortgage I wouldnt even bother, but its the HELOC that will be killing me since its fixed at prime, which just keeps going up. Its up to 7.75% now
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| Posted 5/29/06 9:47 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: second thoughts on refinance- 1 day to cancel
I was told that you need the difference between you current rate and the new one to be about 1%.
I would reconcider refinancing for just 1/4 point.
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| Posted 5/29/06 9:49 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: second thoughts on refinance- 1 day to cancel
Posted by smdl
I was told that you need the difference between you current rate and the new one to be about 1%.
I would reconcider refinancing for just 1/4 point.
That is about right. It has to be a difference of about 1% to make it worthwhile with all the fees. Keep in mind that if you are switching banks, you will also have to pay mortgage tax which can be thousands... They have hybrid HELOCs now which might make more sense then refinancing both the 1st and 2nd mortgages. With these new hybrids, you take out the HELOC and then are able to fix a portion of the money borrowed at a set rate which is sometimes below prime. The HELOC usually has no closing fees as well. I would cancel your loan and contact the bank that currently holds your HELOC and see what they say about different loan options available. I would also just hold off for the time being on the kitchen remodel. It isn't always a good idea to roll remodeling in to a mortgage.
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| Posted 5/30/06 9:04 AM |
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rose825
Best Friends
Member since 6/05 10228 total posts
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Re: second thoughts on refinance- 1 day to cancel
Posted by shamrock12472
Posted by smdl
I was told that you need the difference between you current rate and the new one to be about 1%.
I would reconcider refinancing for just 1/4 point.
That is about right. It has to be a difference of about 1% to make it worthwhile with all the fees. Keep in mind that if you are switching banks, you will also have to pay mortgage tax which can be thousands... They have hybrid HELOCs now which might make more sense then refinancing both the 1st and 2nd mortgages. With these new hybrids, you take out the HELOC and then are able to fix a portion of the money borrowed at a set rate which is sometimes below prime. The HELOC usually has no closing fees as well. I would cancel your loan and contact the bank that currently holds your HELOC and see what they say about different loan options available. I would also just hold off for the time being on the kitchen remodel. It isn't always a good idea to roll remodeling in to a mortgage.
I HATE the bank I have my HELOC with. They outsource to India and their customer service is horrible. It is the main reason I was doing this. I have been crunching numbers all night and if I pay what I am paying now just in interest I will be payed off in 20 years and have my kitchen. Which I desperately need. If I back out know I know I'll lose the 1K and will have to do something else so I'll be paying all this again anyway. Also I dont see any fee for mortgage tax on my HUD?
Thanks everyone for the advice. No matter what I decide to do its nice having a sounding board.
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| Posted 5/30/06 9:42 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: second thoughts on refinance- 1 day to cancel
You know what I forgot to ask you....what does your good faith estimate say? It should list all the fees in there so if she was quoting 1%, that is what it would state.
As far as mortgage tax, it would be in the fee section for your new contract. It is added into the new loan.
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| Posted 5/30/06 2:05 PM |
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