After a little talking with the wife, and some late laying in bed can’t sleep thinking, I decided to call another bank, which is our current mortgage holder. I had called them a while back to get some information, but hadn’t really followed up on it because we were not a huge fan of that bank.
So this morning I talked a little more with the wife and we decided to go ahead and call em. We went through the normal procedures, giving them our name, workplaces and average pay. I explained to them our appraisal problem, not having enough comparable sales. I don’t want to pay for another appraisal and lock in fee if it’s just going to be the same problem. From the way it sounds, he said that they will make the appraisal work, even if they have to go out a further distance to get the comparable sales. We decided to go ahead and lock in for 90 days, for a 30 yr VA loan at 4%. I can’t remember the exact cost, (it will show on our C.C.) but I think it was about $450 +/- $20 bucks.
One of my good e-buds, who taught me a lot about the stock market, taught me the whole risk/reward idea. So with this refi, we are risking $450, with the possible outcome of an awesome reward (in interest savings). The reward would be roughly about $317 savings each month over the course of the loan, compared to what we are paying now. I can’t remember how much we paid for our last appraisal but it was probably about the same cost as this one. So currently we have about $900 invested into refinancing, if this goes through, it would take 3 months of savings from a refi to cover the costs of the initial investment. That is a good return to me.
Just as with the last refi try, we will have to drop about $8-9k, to pay down the loan some and to cover closing costs. We have money earmarked for this from before, so we don’t have to save anything for it. We are trying to be really optimistic here, which is hard considering the past refi problems, but like some things in life, it makes no sense to look at the bad, just look forward to the good. So here is to a new chance at a refi, and an optimistic attitude.