State Specific Question About: Northern CALIFORNIA (CA)

Hello,

Is this deal too good to be true?

I am in the process of refinancing my rental to pay off my primary residence; consolidating 2 loans into 1 for $490K @ 4.25%

Currently, my rates are:

Rental $220K @ 5%

Primary $270K @ 4.825$

According to my loan broker, it has no cost refinancing expect I have to pay for appraisal and credit check. But, in the Disclosure Statement, it says "Estimated Cash at Closing, To You $3616.67"

Yield Spread Premium, Service Release Premium or Other Rebate Credited to Borrower $4753. How much does this credit to borrower increase my rate?

From this Mortgage Loan Disclosure Statement, how can I compute APR?

Is there anything I should look out for?

Is anyone holding off refinancing, expecting rate drops due to Brexit?

Any thoughts/insights/suggestion are greatly appreciated. Thanks in advance!

Best regards,

Mortgage Loan Disclosure Statement as follow:

_________________________________________

Appraisal Fee $800

Credit Report $30

Tax Service Fee $60

Underwriting Fee $800

Other:All other fees in Connection with Loan $155.25

Interest for 30 days at $57.85 per day $1735.50

Hazard Insurance Premiums $455.58

Settlement or Closing/Escrow Fee $475

Title Insurance $485

Other:All other Title Charges $389

Recording Fees $150

Subtotals of Initial Fees, Commissions, Costs and Expenses $5535.33

Total of Initial Fees, Commissions, Costs and Expenses $782.33

Yield Spread Premium, Service Release Premium or Other Rebate Credited to Borrower $4753

GENERAL INFORMATION ABOUT LOAN

Proposed Monthly Loan Payments $2410.51

PROPOSED INTEREST RATE:

4.25% FIXED RATE

Proposed Loan Amount $490,000

Initial Commissions, Fees, Costs and Expenses Summarized on Page 1 $782.33

Down Payment or Loan Payoffs/Creditors (List):

Purchase / Payoff $ 485,601

Estimated Cash at Closing, To You $3616.67

They are just rolling the fees into the mortgage is all. If you don't want to do that then just pay it. If you can't you are financing it.

For me, it all depends on if it fits into my plan. Does it help me with cash flow? Put me into a better position (financially, personally, business wise, stress wise, etc)? If you are robbing Peter to pay Paul now and this is just "reorging" your finances but you will most likely end up in the same place in 5 or 10 years (or whatever) then you really need to figure out what you are doing wrong.