Closing Costs: Finishing up the Refinance


nullI know you are probably sick of hearing about the refinance of our house. I promise, this will be the last post (in awhile, at least) about it. We have signed the documents and tomorrow the loan will be in effect. The state that we live in requires three days right of rescission; basically you have three days after signing when using your home as collateral to change your mind. I had cold feet for a couple moments because I’m worried about doing our own escrow, but really, is it that big of a deal? No. It will be a separate savings account. Plus, I thought about this today: I can break it up and pay the loan payment on the first of the month and then put the escrow into savings on the next paycheck so that first paycheck isn’t hit as hard. I think that will work well.

Before I mentioned that the closing costs would be around $400 or so. Well, we lucked out. We only have to pay $150, which is actually the loan origination fee. Score! We had to roll that into the loan, but that’s okay. We can always make extra principal payments with no penalty.

Remember when I was nervous about trying to refinance because of our house value? Well, that didn’t end up being a problem at all, and our house actually came in a lot more than we had expected. When I heard the news, I was happily shocked. I don’t want to sound like I’m bragging, so I’m not going to say how much higher it came back. Let’s just say that if someone came to me today and offered me that price I’d probably take it and run. They didn’t come out and do a full appraisal, so who knows if it’s really that accurate. But they went with that value for the refi, so we’re happy.

I will have to say, when I learned that they valued the house at that much, I was tempted to borrow more just because I knew I could!
Then I came to my senses and realized how stupid that was and was thankful we’re able to refinance like we are.  I’ll be so glad when I see my first and second mortgage balances at zero.  It’s going to be so much easier just to make that one payment.  I’m very thankful that everything has gone through the way it has.

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