Date: Thu, 26 Feb 2004 16:11:10 -0800
From: steve 
Newsgroups: misc.consumers.house
Subject: Re: Mortgage Refinance Question

I would think that an appraisal would usually be required for a 
refinance unless you are getting a 'sweetheart' deal -- perhaps though 
your existing lender, or your loan is very recent. Typically an 
appraisal costs about 300 bucks and is pretty painless unless you are 
sweating the 90% or 80% loan to value limits. As long as the appraisal 
comes in where you need it to be to get the loan and avoid PMI etc. , 
who cares what it says?

As for escrow, this would appear to be mandatory considering that a 
transaction is occurring that pays off your old loan and starts a new 
one -- a lot of money is changing hands and that is exactly what an 
escrow is set up to handle. You don't expect to walk in with a briefcase 
of cash to do the deal do you? (grin)

Various lenders offer different percentage rates based upon if or how 
many points you are willing to pay up front. Most of the mortgages I 
have had in my life were zero point loans, as I did not believe that the 
benefit of buying down the rate justified the cost when analyzing the 
true total costs over the time period I expected to own the house. Do 
the math here -- do not make an emotional decision based upon some 
'magic' rate that seems to strike your fancy. Lenders love folks that 
have to get a specific rate 'just because' and are willing to fork out 
big up front points to get it.

Last re-fi we used ELOAN. We were pretty happy with the process, and 
believe that we obtained a decent rate given the prevailing rates at the 
time we closed. The re-fi paid for itself in under 12 months based upon 
the total cost analysis. We are now at a fixed rate that will be tough 
to beat without forking out serious points up front.

If I had a perfect crystal ball to see how many years we would own this 
home I might have considered paying more points up front, but the rate 
reduction offered per point of up front cost has not justified paying up 
front points in my opinion.

Steve




Bonus Trax wrote:

> I'm looking into refinancing and judging by some of the advertising I've seen,
> I thought there would be some easy, streamlined programs available.  But all
> I'm finding are the same old deals with points, appraisal, escrow and
> everything.
> 
> Does anyone know of any lenders offering a good deal on a no cash-out
> refinance, preferably without an appraisal and escrow?