I have around $650k left on a 7 year ARM that's around 68% LTV. Chase gave me an estimate for 30 year fixed with a loan amount of $655k and a 3.49% interest rate. The confusion I have is around the loan amount and closing costs.
Origination Charges: $1387 (total, breakdown below)
- % of Loan Amount (Points): $0
- Processing Fee: $1150
- Project Processing Fee: $150
- Tax Service Fee: $87
Title Fees: $1041
Recording Fees: $174
Prepaids: $1440 ($62.60 for 23 days at 3.49%)
Lender Credits: -$1545
For some reason, my total refinance loan amount is $655k and minus my remaining loan balance of $650k and closing costs of $2.5k, there's an extra $2.5k that I'm getting back.
- Shouldn't the loan be just for $650k? Or $652.5k if they roll the closing costs in? I assume I should pay the closing costs immediately so it doesn't incur any additional extra interest
- I believe the estimate includes (0.236)% discount points for $1545 but I don't see that anywhere in my fees. Does the 3.49% interest rate on the first page of the loan estimate typically include the discount already?