Consumption and Real Estate
Are these closing costs excessive for an FHA mortgage refinance?
Question : Are these closing costs excessive for an FHA mortgage refinance?
OK, are these numbers too high, or am I just being overly cautious. My current loan is at 6.375% and has a balance of $ 97,5000. My mortgage company is offering me a new 30 year loan at 5.5% (or lower), but the new loan would be for $ 103K. They are telling me the closing costs are going to be around $ 3,900 with and additional $ 1800 in FHA fees. Is this right?
fha mortgage refinance
Best answer:
Answer by Steve D
That looks about right. Normal closing fees (not including add-ons for FHA) for the buyer/re-financer are 3 to 5% which would put you in the $ 3,00 to $ 5,000 range – right about where you are.
Don’t close on that.
If you are planning to sell the property within 3 to 5 years you will be losing money if you refinance on the loan.
Unless you are dropping one full percent or more on your mortgage loan you are not going to come out head.
It’s a mistake.