Old modified Loan now refinancing

[frenchy69]

Hi

I modified my house in about 7 years ago with Ocwen.

 

I had no choice back then , it was either doing that or loose my house.

 

I was way behind my mortgage .

I am currently trying to refinance at lower rate ,my current rate during the modification it was 5.5% its fixed rate  it is still is ..

 

The rate I am qualified at present time is 3.375%.

 

Well there is the scoop, first of all it took me almost 2 weeks to get a pay off from this folks.

PHH mortgage purchased Ocwen,

 

They finally released  my current pay off today. I noticed they added $8990 of share appreciation  fee to the pay off .

 

Now I owe them $131000.My actual pay of is $120,723.

 

They explained to me at the time I modified the loan it was at $152,my house was appraised for $188K.

They get 25% of the equity ,so if you do the math is 152k-188k thats 36k divide that by 4  is $9000.

 

my current pay off is $120,700 then add $9000 plus the closing cost .

 

Is it worth it refinancing for 3.375% ?

I only have 15 years left on my current  mortgage  at 5.5%.

I was going to to refinance for 15 years .

 

Would this make a sense  in a long run or not ?

please let me know

 

[cv91915]

$121,000 at 5.5% for 15 years will cost you about $56,000 in interest.

$130,000 at 3.375% for 15 years will cost you about $36,000 in interest

 

I don't think 3.375% is very competitive, though.  I've seen rates in the mid- high-2s for 30-year mortgages as recently as last week. 

 

You're just below 70% LTV even at a 130k loan amount. 

 

I would definitely refi, but I would even more definitely keep shopping for a better rate on the new loan.

[frenchy69]

This is an investment property . I was told this is the best rate .

I refinanced my other house at 2.75%

Wanted to thank you for clarifying the interest amount .
That’s what I needed to know .
I hate to see my loan increase .

Thanks


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[cv91915]

53 minutes ago, frenchy69 said:

Wanted to thank you for clarifying the interest amount .

You're welcome.

 

53 minutes ago, frenchy69 said:

I was told this is the best rate .

Told by whom, the person that's trying to sell you this loan?    

 

That may be the best rate for an investment property, just please make sure you have multiple competitive quotes before committing.  

 

Nice job with your recent refi activity, and good luck!

 

Edited August 4, 2020 by cv91915

[centex]

Regardless of whether you refi and at what rate, keep paying more than the minimum each month.  For a nominal amount like that, you SHOULD be able to clear it inside of ten years without much effort.  Make sure you have a lender that does not charge fees for additional payments to principal during the monthly cycle.  AND...make damned sure that they are, in fact, applying the extra to the principal amount...