Shoutout to the guy who warned me about cash out refi closing costs - I ignored him and lost $3,200

I did a cash out refi on my place in Phoenix back in March. First guy I talked to said the closing costs would eat up any savings. I thought he was just trying to upsell me on a different product. Turns out he was right. Between the appraisal fee, origination points, and title insurance I ended up paying $3,200 upfront. My monthly payment only dropped $85. That means it takes over 3 years just to break even. Has anyone else done the math and realized they got hosed on closing costs?

2 comments

2 Comments

barbara845d ago

$85 a month savings means 37 months, not 3 years exactly.

riley_price5d ago

Honestly that's rough to think about @barbara84, I feel for anyone having to wait that long just to break even. Time really adds up when you're pinching pennies.