I have officially started the refinance process. My current mortgage is a 30 year fixed, at 5%, with a balance of just under $147k. I am about 2.5 years into the loan, and my current payment is $830 a month. When I purchased my apartment in 2019, it appraised for $199k, but afterwards, I did a fairly extensive renovation, including completely gutting the kitchen. I am hoping for an appraisal of $220-225k. I would like to take $25k out to pay off a few much higher interest debts, and free up a large amount of cashflow every month.
I submitted an application with a bank nearby yesterday, and had a call this morning with the assistant on their team to discuss. Based on the soft pull, they're offering me a 30 year fixed at 3.875%, no points, and if the new mortgage is $180k (which would require an appraisal of $225k), my closing costs would be $3500-$4000, my monthly payment would be $846, and the cash received upon closing would be $28k. I am completely fine with resetting the term back to 30, as I don't plan to be here for longer than another few years, so paying it down completely is not on my list of goals.
I own a co-op which is a complicated kind of ownership structure, so I can only work with certain banks, it's a different type of mortgage as well. This bank is well versed in them, so I am hopeful that it moves along smoothly. She said their typical time to close is 45-60 days, which I am fine with. Fingers crossed!!!!