Mortgage Refinance Question

[jcweb]

What is the name of your state? Illinois

We are in the process of refinancing our rental property. We currently have a 30/year at 6%--$238,000 house with $148,000 balance on mortgage...have about $20,000 in credit card debt we want to erase--my husbands fico is 636 with one late pay in the last 12 months (december so it has almost been a year)...the broker recommended we refinance at 5.85 and cash out to pay off debts....we turned in all applicable paperwork (full doc loan)...now comes the wait. He said he does not forsee a problem----my worry is that we've gone though all this plus paid the appraiser $300 and may be denied...or do brokers really have in insight as to whether or not the loan will go through...does any one know how their comission works--do they get paid only if the loan goes through? He doesn't seem as "enthusiatic" anymore--he locked us in and sent everything to underwriting yesterday. Also, there are approx. $4000 in closing costs--does this seem extreme?
Thanks

 

[MortgageGuru]

It actually sounds like a good and definitely doable deal. That rate is as good as it gets right now on cash out NOO rates and the fees sound about right for the loan amount.

 

[Ciarraine]

Yeah--actually it seems a little too good. $300 for a rental property appraisal is really cheap.

Yes, brokers get paid for closed loans only

 

[ibcnet]

Home Refinancing Question

Looks to me "m-guru" has the right idea here. You're just going to have to wait for the mortgage refinancing processing to complete. Yes the process of refinancing can be unnerving but hang in there.

While your waiting my advice is do all you can to keep the process going smoothly. Answer all questions thoroughly and provide documentation when needed.

If you're asked to fax forms, follow up immediatley and make sure the form reached its destination. Don't hesitate to call and make sure all is well. Just don't call too often. If you have questions about your part in the process I recommend you peruse the mortgage refinancing resources online such as http://www.bcpl.net/~ibcnet

"my worry is that we've gone though all this plus paid the appraiser $300 and may be denied...or do brokers really have in insight as to whether or not the loan will go through..."

The experienced brokers do, yes.

"$4000 in closing costs--does this seem extreme?"

You will likely get few responses to the latter questions but one can count on a refi to be as low as 2k and as high as...well, more than what your paying there. All depends on whose involved on both ends of the table.