I may be jinxing by writing about this but I can see the light at the end of the tunnel on refinancing. Have a closing date and time – July 31st. Will have taken three and a half months. It was a painful experience and there were times when I thought everything would fall thru. At one point I thought about starting the process over at another bank. Even contact three banks. Wells Fargo, the rates were much higher. Regions Bank responded to my initial inquiry with a rate and points that were acceptable. Asked me to call. I did a couple of times and left messages but never heard back from. I did hear back from Compass. Rates and points were in the ballpark. Said I wanted to apply. Promised to call back the next day but I never heard back from her.
Finally, decided that the devil I knew was probably better than the devil I didn’t and try to stick with Bank of America. At times, it did seem like we were going in circles, with the same question and/or document request multiple times. However, they were always nice and apologetic and I always heard back from them.
The biggest hurdle was the drop in the value of my place, which basically wiped out most of my equity. However, I was able to swing the loan without having to pay PMI but will have to escrow my property taxes. Initially, I was adamantly opposed to this. I wanted to control payment of my taxes but at the end of the day all I am losing is time value of money because the escrow account gets no interest.
So, what was the final damage? Term was 15 years, 4.5% interest with 0.625 points. Total closing costs were less than $2,000. Have to admit that I did check rates again. Lowest I found was 4.875 with 1.0 points. But this was off some website and my experience has been that these are teaser rates to get you to call. The actual rate is going to be higher. So, I am satisfied. Only thing is that I did have to sell stock for closing costs and taxes. What I sold subsequently went up two days in a row. Significantly.