Refinance question

[Lynne]

We were approached by the company who did our initial loan for refinancing. We are at 6.625. They offered 5.5.% The loan is $174K with fees of 1 (1.743)% origination, $350 appaisal $295 broker fee attorney fee 500 recording fee $65
First, what is a commitment fee?
Second, we have a modular on frame, (fany manufacutred house, I like to say), do we qualify for a regular loan or does it have to be special for MH's.
We initally expressed our interest over the phone, but when we saw the fees he ahdn't mentioned (brokers fee and commitment fee), we are thinknig it's not such a good deal.....any thoughts

[Mac]

If it's on your land, it can be financed conventionally( a "regular loan" as you say). Sounds like that's what this is, judging by the interest rate. You can determine the payback period with any of a number of financing calculators out there at mortgage-lending websites. The appraisal is fairly standard, the "broker fee" looks duplicated to me, don't know what the "attorney fee" is. Basically, if you want to refinance, get the total fees, from their good-faith estimate, check around a bit, see how long the payback period is, and think about how long you want to live where you are (no sense doing this if you may move in a year). I'm sure I missed plenty, but this will get you started.

[rmurray]

Fees sound a little high..rate also a little high..I had an originator tell me he is quoting 4.5% with 1% origination on 15 year loans...yesterday...

Shop around and see if you find a better deal..1/2% on your size loan is a lot of money (about $ 650/yr)....

There are no fee refi loans available...the rates are slightly higher..but they are easier to compare and they do not raise the principle of the loan....SHOP...SHOP...SHOP