Mortgage Scenario for February 8, 2010

4.875% (APR 4.904%), 30-Year Fixed, $400,000 loan amount, 60% Loan-To-Value, Refinance – No Cashout, Single Family Home or Condominium, 740 FICO

This is a generic refinance scenario where the borrower has a strong credit score, there is plenty of equity in the home, and the borrower is receiving $2,000 back or less at the closing table (i.e. “rate & term” refinance versus “cashout”).  Total closing costs in this scenario are $1,850.  There are no origination points.

The monthly mortgage payment is $2,116.83 which consists of $491.88 that goes towards paying down the mortgage balance (principal) and $1,625.00 in Interest Expense in the first payment. In subsequent payments, the proportion of principal slowly increases and Interest Expense slowly decreases.

Mortgage Scenario posts are intended to provide you with a common scenario that demonstrate what competitive rates and fees should look like today.  Rates change from day-to-day, even hour-to-hour, depending on MBS (Mortgage-Backed Securities) market movements.  To get a quote that is customized to your situation, please fill out and submit the Mortgage Compare Request form on the Home Page.


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