I am looking to do a cash-out refinance on a property that I own free and clear which i estimate to be between 95k and 105k. I'm considering terms that I received from Zeus Mortgage. 30 year loan, 4.75% interest rate and 75% of the appraisal value with $6,500 in closing costs. I am a self employed. I will continue to search around but wanted to know your opinion on these terms??? Both the interest rate and closing costs seem high to me. Your feedback is appreciated. Thanks.
@Samori Diallo we are in the process of doing the same thing in SD and we are able to pull 75% of appraised value for 30 yrs at 4-4.25%. That is with a regional bank in MT-SD-WY area. 15 yr rate is 3.25% if we wanted that. Not sure on our closing costs but $6,500 seems high to me... I would suggest finding a Credit Union which typically have lower rates or a regional bank, which has low rates and usually that desirable 30yr mortgage.
@Samori Diallo The rate seems very high. 75% LTV is correct. Closing cost does look high, but some areas have high taxes, so can't say for sure.
6500/71250 = 9.1% in closing costs. Certainly seems high to me.
4.75%@30 looks good
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