mortgage refinancing idiocy

[vwboomer]

Maybe it's just me, but this whole thing seems idiotic.

My mortgage is with a company that bought said mortgage from the company that bought it from the original bank. Get it? All this in 5 months.

My rate is 6.75 - it wasn't bad at the time. Now I can get 5.125 from my current holder. So, 5 months after having it done, I have to get all the same shit done again - title insurance, flood assessment, credit check, appraisal, etc.

I have ZERO negative credit actions in the last 6 or so years. But I still have to write a make the beast with two backsing letter explaining the problems I had in 2002. After they already hold my current mortgage! I also have to provide tax returns, W2's, pay stubs, bank statements.....So it's like....if my pay has dropped (it has, I'm on 32 hours now and brink of possible unemployment) they'd be better off with my at 6.75 rather than cutting my monthly payment by $75 at 5.215.

What the make the beast with two backs. I mean, I'm not worried I won't get approved. But it's a lot of bullshit and useless tree killing paperwork.

And as another kick in the shorts, as of Tuesday they waive the 299 'application fee'. I locked in on Friday and paid it then. FFS. (The kick in the shorts of 2009 buyers not having to repay their first time home buyer credit, while me being a 2008 buyer who DOES have to pay it back really make the beast with two backss me off!).
But I'm not bitter.

I just think the whole process is retarded (can I still say that?)

[herm]

what are the the total costs associated with the re-fi? or to put it another way, how long will it take to amortize the savings?

[vwboomer]

About $1k in closing costs, slightly under. The guy matched my credit union on that. His agency is also picking up one of the points. A rough estimate, since it depends on the closing date, taxes I'll have to pay etc, would be about 1500. Even figuring high at 2000, it would pay for itself in a shade over 2 years.

If I can roll the remainder of the costs into the loan I will. I've already paid $620 out of pocket, but I'd rather not be dipping into my savings right now if I don't have to. 450 people are in the process of being laid off right now, but our division isn't saying a damn word about how many of us are going to be laid off or shuffled around.

[Ash]

with the current banking crisis and with much of it the result of loose credit standards, most banks are bing scrutinized by their regulators.  from now on, acquiring credit will be that much harder and there will be fewer loose interpretations of underwriting standards.

good luck on your refi, hope you get it soon!

[Drjones]

Burn it down, collect the insurance money, pay the mortgage off, go rent for 5-6 years then buy another with cash.