why is principal balance increasing with refinance?

[cam]

What is the name of your state? MA

I have a mortgage of 150,000. Over the past year, I've paid about 2,000 towards the principal, so I now owe 148,000. I'm refinancing, and in looking over the paperwork, the HUD statement lists the "gross amount due from borrower" as 149,000. Why isn't the amount due equal to my most recent mortgage statement of 148,000? I feel like I'm losing 1,000 that I've already paid. I called and asked them, but their answer didn't make sense to me, and I'm closing tomorrow. HELP!

[jmm]

Originally Posted by cam

What is the name of your state? MA

I have a mortgage of 150,000. Over the past year, I've paid about 2,000 towards the principal, so I now owe 148,000. I'm refinancing, and in looking over the paperwork, the HUD statement lists the "gross amount due from borrower" as 149,000. Why isn't the amount due equal to my most recent mortgage statement of 148,000? I feel like I'm losing 1,000 that I've already paid. I called and asked them, but their answer didn't make sense to me, and I'm closing tomorrow. HELP!

Maybe the house appraised for $149k? Maybe they are rolling in closing costs to the loan? Maybe???

Not enough info.

[justalayman]

have you spoken directly to you current lender for an exact payoff? You may simply be rounding things off a bit too much.

Are there any other costs included in the financed amount?
Closing costs, re-appraisal fees, title insurance policy, document prep fees, interest points, etc.

also, you list this as a gross amount. What is the net amount? and what is the actual financed amount?

How about you tell us what the answer was they told you. It may make sense to somebody here and without anymore info than provided, it would seem your best chance for any real answer.

[nextwife]

Too many people look ONLY at the interest rate. Not the APR, and not the combined closing costs. When shopping for a refi, it is important to look beyond who appears to be offering the lowest payment rate.

Example: I know of a local bank where the rate is higher, they portfolio and service it, but a refi with equity can be done without an appraisal, without new title insurance (they do a search but have a blanket liability) no points, only some credit reporting and recording fees. There are no "back end" fees when one needs to pay off the loan. They close their own loans in the branch, so they don't even charge a closing fee. BUT, the rate will not be bargain basement.