Refinance..97%LTV, PMI, & selling n March?

[Anonymous]

I just refinanced my home and was informed closing is the 30th. I got lower payments,5.5%, 25,000 at closing

and I plan on selling in March. Buyers already in route.

Does this sound like I made the right decision?

[cobaltnv]

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@Anonymous wrote:

I just refinanced my home and was informed closing is the 30th. I got lower payments,5.5%, 25,000 at closing

and I plan on selling in March. Buyers already in route.

Does this sound like I made the right decision?

I do not want this to sound harsh but, Why would you refinance  3 months before selling your property? Did your loan officer know you were selling?

 Closing costs are usually in the 2-6k range. It would surprise me if you would save that much in 3 months of lower payments. Has your buyer agreed on a price? If not I hope that your house does not drop in value over the next couple of months making you upside down.

Congrats on having a buyer in this market, hope everything works out for you! 

Good luck 

[cobaltnv]

Two other comments to think about. 

I would not spend the $25k cash out right away as you may need some of that for the sellers portion of the closing costs as there is basically no equity in the home at the moment to cover these fees.

If you are unsure the buyer will go through with the purchase and you may decide to stay in the home then you have basically hedged your bets by lowering your payments.

Good luck. Let us know how it goes. 

[Anonymous]

Actually, you will need most of that cash for the sale.  if you are at 97% LTV, you are looking at needing 6-7% for the realtors fees and most buyers are expecting either a reduced sales price or all closing costs paid.  I would assume that to compete a real estate sale right now, expect to actuall clear about 8-10% less than the actual selling price.  Be very conservative with you 35K in cash you have right now.  

[Anonymous]

Thank you all for the replies. I left out the fact that we bought the house as a foreclosure and it was pretty cheap. The market in our neighborhood is great. We have researched the surrounding area and found 3 foreclosures out of about 854 houses. Our area has got a boost because a lot of government jobs are relocating here from Virginia.

I'm not in a big hurry to sell but would like more space.

And to the previous question about if the loan officer knew I may be selling..No, he didn't. I will keep you all updated about what's happened.

Also, I have a friend that teaches 1st time homeowner classes and that's where I found my buyer. It made it easier to sell since she already knew everything about them, and we'll save the realtor fees because my husband has his license. (recently) lol.

HAPPY HOLIDAYS EVERYONE

[cobaltnv]

Well it sounds like you have done your homework. Good luck!