Refinance update. My 'failsafe' loan option officially fell through. No way to get the FHA Back to Work Loan in 1 year. that is out so I have to get a 'softer' loan than my current 12% loan but w longer term.
I need a bridge loan for 3 years to hold me until I can get an FHA loan under normal guidelines
Broker called.. he thinks he can get 8.25, 3-4 points, 3 year term, 30 year amortization. He will get more detail tomorrow.
4 points is $12000, loan costs unclear at this point but a few thousand.
My payment would go down $739 a month and I would be putting $200 (average) a month towards the principal.
Let's say total costs of loan are $15k. I would make that up in approx 16 months.
My current loan ends in 1 year 6 months so have to get out of it at some point.
1. clarify details, see what the barebones offer is and ALL costs
2. compare that to the costs of keeping the loan
3.evaluate if it is likely I can get anything better
4. talk to current lender.. and see if THEY will do a similar loan for 2-3 points (saving points and closing costs)
Main house refinance update- please give thoughts