From: "Jeff Strickland" 
Newsgroups: alt.org.natl-assn-mortgage-brokers
Subject: Re: looking to refinance existing equity line for 30 year fixed
Date: Thu, 7 Jul 2005 12:50:24 -0700

You said you have an equity line, do you also have a "regular" mortgage too,
or is the equity line the only financing you have today?

My suggestion would be to look at rolling any existing 1st trust deed
("regular mortgage") and the 2nd trust deed (the equity line) into a single
new loan. If all you have is the equity line, then I can simply roll it over
to a fixed rate loan. I would be inclined to make the new loan for $200,000
and pay all of the closing costs from the loan so you don't have to pay them
from your pocket. I would also write your loan as a 30 year and tell you the
payment to make so that you could retire the loan in 15 years if you want.
My closing costs for the Junk Fees will run to about $2500, then we will
establish an impound account that pays your property taxes and home owner's
insurance when these items come due, we take the amount that is due and
collect 1/12 with each payment, plus we collect a few months up front so
that at the end of the year the the balance is zero, and then the whole
cycle begins anew. Adding the impound account to the closing costs, I can
see where it would be reasonable for the total closing to be in the range of
about $4000. Assuming worst case, $5000, and an interest rate of 6% on the
loan, the APR will be 6.24. These very simple numbers seem to indicate that
my loan is the better deal for you. Frankly, I pulled 6% out of my ass, the
rate today is likely better than that. No matter what the rate is, if the
loan is $200k and the fees are $5000, the APR will turn out to be about
.25%.

The APR is a number that represents the cost of the prepaid loan charges. If
you had $5000 in costs and borrowed $200,000, then you would only get the
use of $195,000 of the loan, but the payment is based on the 200k figure.
Even if you paid the loan costs from your pocket instead of from the loan,
you still only get to use 195k of the 200k that you borrowed. So, if you got
several offers to lend at 6%, the one with the lowest APR would be the one
that had the lowest fees. The reason for the APR is because you will get a
headache trying to decipher and compare my fees with another broker's fees,
so the APR boils it all down to make it simple.

Jeff Strickland
City Mortgage Service
San Diego, CA
858 217-2449
jeff@citymortgage.net









"Mark"  wrote in message
news:1120757016.025870.35570@g44g2000cwa.googlegroups.com...
> I have an existing home equity line.
> Last statement listed:
> Balance---$191,000.00
> Interest--$1,087.00
> APR-------6.64%
>
> I have tried to talk to the same bank and I have got from them the
> following:
> 1. about $4500.00 in closing costs. I beleive he said that $1700.00 is
> a point or something because he gives me a low rate.
> Monthly payment I beleive he said would be $1200.00?
> rate am not sure it was over the phone.
>
> Anyway if I go to anothe bank or mortgage company ?
> What can I expect?
> I want to refinance it with 30 year mortgage.
> Any idea on:
> 1. rate I can get?
> 2. closing costs?
>
>
> alt.org.natl-assn-mortgage-brokers
>