So we are had our closing on our mortgage refinance this morning at 9. We were told that we’d have to pay our next months mortgage payment and possibly the negative balance on our escrow account (yeah…we were in the red on our escrow account and have been for several months but hey…it’s water under the bridge cause apparently no one cared enough to make changes to how much money went in there and when they did we still got screwed at the end of the year, but hey…that’s a whole ‘nother b^&*ch session). At any rate, we were prepared for about $1200. Yesterday afternoon at about 3:15 I get a call from the person handling our refinance and she tells me we need to come up with $2500 bucks by this morning.
Um…WHAT! SAY THAT AGAIN! yep…nearly $2500 in closing costs…when we were expecting $1200…not more than double that. Of course I’m instantly shocked and pissed cause where am I going to come up with that amount of money by morning and because it’s over double what we were originally told. Why is it suddenly so high…because someone…I don’t know who specifically, failed to mention that we’d be required to place approximately 4 months worth of monies into our escrow account. Her excuse for us not having this information…”we don’t like to throw too much information at people.” WTF! Having to place 4 months worth of money into an escrow account at the beginning shouldn’t be too much information…it should be the right amount of information and should be provided up front. When dealing with large sums of money I like to know, up front, how much and how little. That’s just me…I don’t really know who to blame in all this so I’m just pointing the finger at “them.” It’s always “their” fault anyway…whoever “they” are.
The “good news” in all this…if you can call it good news…is that we could roll the $1500 into the amount we are financing so we don’t have to come up with it up front…we only needed to bring a little over $1000 this morning and I was able to write a post dated check for the whole amount and it won’t be cashed until May 9th. The bad thing is that we originally went in planning to save money…it worked out to be about $65 a month…now when the escrow amount is all worked out with how much we should (and should have in the past) be putting into the escrow, our monthly payment is $32 bucks MORE than we are currently paying. The way I figure it, if the mortgage company were to raise our escrow payment by $25 at our current percentage we’d still be paying $20 more each month at a higher overall %age and wouldn’t be saving much over the life of the loan. So in reality, we are saving money based on what we should be putting into escrow with the new bank. Oh, and we are swicthing from CitiMortgage to Wells Fargo. I have nothing against Citi…save the constant issues with our escrow and I’m looking forward to my dealings with Wells Fargo. I’m hoping they take better care of their escrow accounts than Citi did.
So, for now, it’s done. We have until midnight on April 28th to change our minds. We usually would only have 3 business days, but since the refinance corporation doesn’t do the payouts until the 29th of each month, we have until then to decide. I don’t think we are going to back out, but just in case.
In other annoying news…we are having to deal with a flooding basement. Sadly, it’s not from all the rain that the Northeast has been getting recently. I think it has to do with that angel fish incident. There is a drainage hole in the floor next to our furnace and hot water tank (for if the boiler or water heater ruptures) and apparently all the water in the house (sinks, toilets, washer) all drain through a pipe that runs under that drain…well, apparently something is preventing the water from fully draining away and was backing up in said hole…all over my basement floor. Thankfully we don’t use our basement for anything other than…well, a place to keep the furnace and hot water heater and it has a dirt floor so nothing was ruined in the process. We’ve been pouring Liquid Plumber down there and today after the closing we ran to Home Depot to get some main line cleaner and flanges (or something like that) so we can block the hole and hopefully force whatever is blocking the pipe out so water runs freely.
In reality, we think this may have been a possible cause for all the water damage that was down in the basement when we bought the house 5 years ago…the only people who will ever really know the answer to that question are long gone so I will never know the truth. At least in the 5 years we’ve lived here, we’ve never had issues before so all is good. Hopefully by tonight things will be running smooth and fingers crossed that I’ll be able to do laundry tomorrow without incurring more yucky water on my floor. Blech!