The new terms on refinancing the house would be as follows:
20 yrs. @ 5.175% Payments including Insurance & Taxes = $988.00
24 yrs. 6 mos. left @ 6.875 Payment including Insurance & Taxes = $1013.00
$350 - $500 for a new appraisal - must appraise for UNDER $155,000
$400 for Attorney to send to Bankruptcy court for there (almost 100% guaranteed) approval to lower rate. AND, we MAY have to pay the difference of $25 a month to the BK Trustee....not for sure...but no big deal since we only pay through next February and it will take a month of two to get this settled.
A $25 a month savings is not much...BUT and a BIG BUT.......it will knock almost 5 yrs. of payments off. I'll loose one whole payment in fees, but still seems worth it to me. This IS staying with the same lender and under the HARP program backed by the government because our loan was a Freddie Mac loan and the loan was made when the housing market was at it's peak.
I know any move on the part of a mortgage SINKS. The paper work is horrible and it requires getting the Bankruptcy court involved. And getting hubby to get off work to sign everything.
Worth it???? At first I said no......but the more I think of it....YES?????