So, I’ve mentioned before that we are in the process of trying to refinance our house. Honestly, it’s been kind of a pain. In short, there is tons of paperwork, a lot of hoops to jump through, and if you ask me, and I see why banks make a lot of money off mortgages, a total ripoff in charges and fees for the simple idea of refinancing. Sure, they roll that money they charge you, which is usually a couple grand, into the mortgage (the new one), but really you’re still paying that to them, and I’m still trying to figure out for what.
Don’t get me wrong, I still want to refinance, as we are currently getting reamed on our two mortgages right now, and desperately want to roll them together into one so we can have a better rate, all on one loan instead of two, one being higher than the other, but I guess now I’m realizing how the homeowner really pays a ton of interest and fees, and how it is hard to get ahead as a homeowner and actually pay your mortgage down. The one benefit that you can’t deny though, is that owning a home has definite advantages when it comes to your taxes.
I don’t know what I’d do if we couldn’t even claim the outrageous interest we are paying on our home with the two mortgage now, and our high property taxes, at the end of each year on our tax returns. Shoot, I’d probably want to curl in a ball and suck my thumb and give up. The tax thing is the upside, and it is the clear advantage to actually still owing money on your home. In the end, especially if you are in a higher tax bracket, you will see some sort of benefit from paying mortgage interest and property taxes.
I suppose I will be really grateful if we get approved for this rolled up loan, but what makes me nervous is if our house will come in appraised at what it needs to go FHA, which is what it would have to be if we actually get them both together, and that’s what we really want, rather than just being able to refinance the one loan that we’re already getting a pretty good rate on. However, we’re not quite sure if our house will appraise for that amount, more on the appraisal for the mortgage on the next post. Let’s just say a mortgage refinance appraisal, er, isn’t what I thought it would be!