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Started the Refinance Process!

February 18th, 2022 at 03:57 pm

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!!!!

1 Responses to “Started the Refinance Process!”

  1. mumof2 Says:

    hope it all works out for you

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