Refinancing Home - Ortonville,MI

You can lock in the rate so the time it takes to close doesn't matter. You used to be able to do a refi in less than a week now less than a month is unheard of.

Depending on your rate and balance there is going to be a little or a huge difference between the balance and the payoff.

I am not sure about the escrow, or at least your wording. What we did was either financed the new escrow or brought money to the closing. The old escrow was refunded to us after the mortgage was paid off.

Your payoff is *higher* becuase you pay in the arrears; an example is if you close on your house in september, your first mortgage payment isn't due till October. So when you get a payoff statement you have to make up that payment which should be about one month mortgage payment, which is reflected in the payoff balance.

As for your escrow question, I don't understand what you are trying to say so I will tell you what typically happens. Very few mortgage companies will deduct what you have in your escrow account from your mortgage payoff. Most companies keep your escrow money until your mortgage is completely paid off. When you mortgage is paid off they mail you your escrow balance.

Just like when you close on your house, you have to set up an escrow account which is based on your monthly property taxes & when the property taxes will be due. So for example if you close on your refinance in March and your property taxes are due on July 1st, you will need to have 9 months escrow set up PLUS 2-3 months extra money in there, so you will need to have almost 12 months of property taxes to set up your escrow account. If your property taxes are $300 a month, then that is $3,600 just to set up your escrow account. You can look on your statement to see how much you currently have in your escrow account. You will have a choice of bringing in the escrow money at closing OR you can 'roll' the escrow money into your new mortgage.

If this closing takes 3 weeks, that will be a miracle!!!! Have you locked in your rate yet? I was a mortgage broker for many many years. I have helped several woman on this board, if you would like to PM me please feel free.

If you are taking money out - you should have an appraisal done.

It can take up to 3 weeks - especially NOW that so many foreclosures are happening - underwriters have to make sure all the t's are crossed and all the i's dotted.

You should have been given a Good Faith Estimate that detailed EVERY charge, etc. for the refinance. That will also include an Approximate Loan Cost Illustration that breaks it all down for you as well.

I would ENSURE that it is NOT an ARM but a tradition Fixed Rate. ARMs may look good - but many forget about the balloon payments due.

I would not go through a broker. I would go through a bank or credit union. Deal with the people. We have Wells Fargo. We've been with them for 16 years.

How much do you need to bring to the table to close?
Can I have the fees wrapped into the loan so I don't have to bring money to the table to close?
What is the interest rate?
How long is this interest rate locked in for?
What will happen if the rates drop - can I get the lower rate?

Ensure that your rate is LOCKED. This means when the rates changed, you will NOT be affected.

I know there is more to ask but my brain is fried!!

I just finished refinancing my home. You can lock in the interest rate. Ask to do that. It is standard protocol to lock in the interest rate. I suggest that is why you couldn't go lower on the previous transaction.

I would shop around to find someone who will help you understand the process. Could it be that this person assumes you understand things because you've worked with her before. You wouldn't have to go with a new person if they don't offer you a better deal. If they do you just factor in the loss of your application fee for the first company when considering if it's a better deal.

They should have given you a list outlining the specifics of the cost of refinancing. I received a check for the amount of the escrow on the old account. So, I'm thinking the escrow amount was subtracted from the new loan because you will still be having expenses to be paid out of the escrow fund.

My closing costs were taken out of the amount I took out.

My refi took nearly 2 months. Their initial estimate was that it would take 3 weeks but they then needed more financial documentation and an appraisal. And......they took the loan person off my account and gave me a different one. I'm sure that she wasn't handling my application appropriately. For one thing she said I had to pay cash for the closing costs and asked for documentation from where I was getting the cash. That took me a week or so to arrange. Turned out the closing costs were taken out of the amount they gave me.

You have every right to understand every step of the process. Insist on explanations, in writing if that will help you.

Here is a web site that may help. http://refinancebasics.com/ I found it by googling refinance basics.

Some banks/ credit unions will not let you lock your rate in until the apprasil is complete. This happend to us and we just refinanced the end of Dec. So instead of risking loosing out on the lower interest, I jumped train and called another credit union. I did have to pay a fee to transfer my loan offer, but it was still more cost effective as the interest rates went from 5% for a 30, down to 3.8% for a 20. So I pay $50 more a month to have it payed off 10 years earler.