Refinance Mega Thread

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Anonymous Coward
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Re: Refinance Mega Thread

Post by Anonymous Coward »

LenderFi broker: "the market is rising..."

But they quoted us 2.875% for either a 20- or 30-year FRM. For a 20-year, about $1300 in costs, and $1250 in credits, so about $50 out-of-pocket to close.
orklc
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Re: Refinance Mega Thread

Post by orklc »

We locked a 15 year fixed with lenderfi yesterday at 2.0%, with total points&fees of 1.49%, and the appraisal waived. Paying points is definitely a different approach from what I've read most others choosing instead (the no/low fee options at 2.5 or 2.375 for a 15 year), but it seems to make sense with some optimistic assumptions about how long we'll be in the house and the loan. Prior to reading here I had been waiting to see if any of our local CUs would drop to 2.5% and normal fees, which they still haven't yet.
2quiker
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Re: Refinance Mega Thread

Post by 2quiker »

p_haze wrote: Fri Jun 12, 2020 12:42 pm
2quiker wrote: Fri Jun 12, 2020 12:18 pm How long do you have to wait to refi? I just finished refinanced with Better( won't be using them again, horrible experience)I don't see anything in my paper work stating that I have to wait unless I am missing something...? My first refi was through One True Loan, that was a great experience. I didn't go with One True Loan this time around because Better had better rate and credits but as I found out cheaper is not always better...
I believe for rate and term refi, there is no waiting period and you can refinance whenever (technically an early payment on the loan). However, some lenders (example, LenderFi) add stipulations that prevent you from selling/refinancing within 6 months.
That's what I figured, thanks.
Anonymous Coward
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Post by Anonymous Coward »

A broker asked me to supply the full copy of another (competing) broker's GFE. On one hand, I can understand why the broker would ask this; on the other hand, it seems kind of cheeky. Is this standard operating procedure these days?
VCC
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Post by VCC »

Yes. Send the loan estimate to different lenders or brokers to see who has the best pricing. Better.com says they will beat any lender by $1k.
1andDone
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Re: Refinance Mega Thread

Post by 1andDone »

Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
Fatusr
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Re: Refinance Mega Thread

Post by Fatusr »

I was about to close with better for 30 years at 3% and 1 day before signing I locked with local CU at 2.75%. Better said it cannot match as they don’t have that rate in their system.

I am in process with CU now and better is asking if I want to withdraw application. Is it ok to hold onto better until I reach closing stage with CU just in case?

Better rate lock is till first week of July.
snailderby
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Re: Refinance Mega Thread

Post by snailderby »

1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
How are you getting such good offers?!When I ran the online quote tool at LenderFi or Better today, assuming a credit score above 740 and a LTV below 75%, a no-cost refinance was landing me somewhere in the 3.5% range. I would jump at the chance to refinance at 3.0% with a $3500 credit.
Last edited by snailderby on Fri Jun 12, 2020 10:06 pm, edited 1 time in total.
1andDone
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Re: Refinance Mega Thread

Post by 1andDone »

snailderby wrote: Fri Jun 12, 2020 10:03 pm
1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
How are you getting such good offers?! When I ran the online quote tool at LenderFi or Better today, assuming a credit score above 740 and a LTV below 75%, a no-cost refinance was landing me somewhere in the 3.5% to 3.875% range.
As others have pointed out, with Better you have to find a competing offer for them to "beat" since their offers are not very good. I put in a request at Lending Tree and one of the brokers who responded provided competitive quotes that I then sent to Better.
ChiKid24
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Re: Refinance Mega Thread

Post by ChiKid24 »

1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
This is almost the same exact and credit rate I'm locked in with Better. Sadly I don't have an Amex and thinking it's too late to try to add one for the additional credit. I've already paid for and had the appraisal done.
1andDone
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Post by 1andDone »

ChiKid24 wrote: Fri Jun 12, 2020 10:11 pm
1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
This is almost the same exact and credit rate I'm locked in with Better. Sadly I don't have an Amex and thinking it's too late to try to add one for the additional credit. I've already paid for and had the appraisal done.
You may still be able to apply for an Amex card to get the credit. It's certainly worth exploring for the free appraisal and $2,500 credit. I would ask your loan consultant about it. If they apply the promotion I assume they would give you a credit at closing for the appraisal fee you've already paid.
JBTX
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Re: Refinance Mega Thread

Post by JBTX »

This is all very baffling to me. These rates are far lower than anything I've seen. I'm seeing 30 year rates here equivalent to what I'm seeing for 15.

Ultimately it seems you have to start with someone that gives you a low rate, and will document it in writing. Who do you start with?

I looked at Lender fi and wasn't blown away. I have a 3.25 mortgage of $150k. You can get to 2.75 or maybe a tad lower but points and fees are typically over $5000.
snailderby
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Re: Refinance Mega Thread

Post by snailderby »

JBTX wrote: Fri Jun 12, 2020 10:21 pm This is all very baffling to me. These rates are far lower than anything I've seen. I'm seeing 30 year rates here equivalent to what I'm seeing for 15.

Ultimately it seems you have to start with someone that gives you a low rate, and will document it in writing. Who do you start with?

I looked at Lender fi and wasn't blown away. I have a 3.25 mortgage of $150k. You can get to 2.75 or maybe a tad lower but points and fees are typically over $5000.
Like you, I can't seem to find such good rates anywhere online, and I've checked Better, LenderFi, AimLoan, Box House Loans, Amerisave, Lending Tree, and several other places today. The lowest no-cost refinance I could find was 3.49%. Am I looking in the wrong place? Is it the state I live in? The loan amount? My ugly face? Lol. :)
JBTX
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Post by JBTX »

snailderby wrote: Fri Jun 12, 2020 10:28 pm
JBTX wrote: Fri Jun 12, 2020 10:21 pm This is all very baffling to me. These rates are far lower than anything I've seen. I'm seeing 30 year rates here equivalent to what I'm seeing for 15.

Ultimately it seems you have to start with someone that gives you a low rate, and will document it in writing. Who do you start with?

I looked at Lender fi and wasn't blown away. I have a 3.25 mortgage of $150k. You can get to 2.75 or maybe a tad lower but points and fees are typically over $5000.
Like you, I can't seem to find such good rates anywhere online, and I've checked Better, LenderFi, AimLoan, Box House Loans, Amerisave, Lending Tree, and several other places today. The lowest no-cost refinance I could find was 3.49%. Am I looking in the wrong place? Is it the state I live in? The loan amount? My ugly face? Lol. :)
Just ran lenderfi again. A 2.75% 15 year quotes $1766 in points. They don't list the fees but typically those run around $3000-$3500. Basically $5000 total. I could take that to Better, and total points and fees go to $4000. If I could get amex credit that would get me to $1500 total, and that is probably worth doing, but I'm not sure if I'm eligible for amex credit. All the lenders tell you an email offer is needed.

2 weeks ago I got to 2.75% with quicken loans will $4000 of fees and points. I didn't realize they are also doing $2500 amex credit, but again not sure I'm eligible. I tried this route again but they didn't call back.
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BrandonBogle
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Post by BrandonBogle »

For folks wondering about not seeing these deals, keep in mind that all other things being equal, loan amount and zip code/state make a big difference. When I was preparing my refi in NC in late April/early May, I was finding 0.25% lower rates if my loan balance was above $200k and bigger credits if my loan balance was above $300k. And the same loan numbers with a CA zip code cheaper than a NC zip code.

Heck, my mom lives only about two hours away and her zip code was right off the bat 0.25% cheaper at many lenders with my numbers.
lcdx22
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Re: Refinance Mega Thread

Post by lcdx22 »

lcdx22 wrote: Mon Jun 01, 2020 12:59 pm Just locked in with Better.com a 15 year @ 2.5%. Cost excluding escrow $226. Their initial rates were not competitive at all. Best I got was 2.5% with $1226 closing with LenderFi. Sent the offer to Better.com, they matched rate and beat it by a $1000. Also confirmed that I will also get the $2500 AMEX credit.
Just a quick update. Better has been moving pretty fast on this. But today I received an updated loan estimate and they jacked up the amount of escrow they want funded. They now want full year of taxes and 6 months of insurance upfront. That's double the amount of my escrow balance with my current lender.

Anyone experience this with any of your refinances so far?
1andDone
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Post by 1andDone »

lcdx22 wrote: Sat Jun 13, 2020 12:12 am
lcdx22 wrote: Mon Jun 01, 2020 12:59 pm Just locked in with Better.com a 15 year @ 2.5%. Cost excluding escrow $226. Their initial rates were not competitive at all. Best I got was 2.5% with $1226 closing with LenderFi. Sent the offer to Better.com, they matched rate and beat it by a $1000. Also confirmed that I will also get the $2500 AMEX credit.
Just a quick update. Better has been moving pretty fast on this. But today I received an updated loan estimate and they jacked up the amount of escrow they want funded. They now want full year of taxes and 6 months of insurance upfront. That's double the amount of my escrow balance with my current lender.

Anyone experience this with any of your refinances so far?
For my current loan (refi back in 2016) I paid a year of home insurance and property taxes at closing. So, not unheard of.
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nps
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Post by nps »

lcdx22 wrote: Sat Jun 13, 2020 12:12 am Just a quick update. Better has been moving pretty fast on this. But today I received an updated loan estimate and they jacked up the amount of escrow they want funded. They now want full year of taxes and 6 months of insurance upfront. That's double the amount of my escrow balance with my current lender.

Anyone experience this with any of your refinances so far?
Ask them to waive escrow. I would consider it worth it even if waiving increases lender costs a bit.
TheOscarGuy
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Post by TheOscarGuy »

nps wrote: Sat Jun 13, 2020 6:03 am
lcdx22 wrote: Sat Jun 13, 2020 12:12 am Just a quick update. Better has been moving pretty fast on this. But today I received an updated loan estimate and they jacked up the amount of escrow they want funded. They now want full year of taxes and 6 months of insurance upfront. That's double the amount of my escrow balance with my current lender.

Anyone experience this with any of your refinances so far?
Ask them to waive escrow. I would consider it worth it even if waiving increases lender costs a bit.
Is it just as easy as asking. I thought you had to typically wait for mortgage to close, and then approach the lender/servicer to ask that they remove escrow account.
MrJedi
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Post by MrJedi »

Can somebody help me with some refinance basics? Never done it before and a little lost.

Background:
We're 5 years into a 30 year loan at 3.875% and $122k balance. Condo. My credit ~790, her credit 810+ (does it matter who applies between us?). I'm interested in a no/low cost refinance since we will potentially be moving in the next 1-2 years. I do qualify for the $2500 Amex credit with Better. Is a better rate viable and worthwhile for me to pursue?

I started the process with Better with me as the borrower. The rates they quoted with the soft pull weren't great. Is the cost listed under points include other estimated costs/fees or is that separate?

I read here that you need to provide competing offers for Better to make a good offer. What does that process look like? Do I go through the concierge person that emailed me through the Amex offer or somebody else?

Sorry for the novice questions and thanks for any help or insight
snailderby
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Re: Refinance Mega Thread

Post by snailderby »

BrandonBogle wrote: Fri Jun 12, 2020 11:51 pm For folks wondering about not seeing these deals, keep in mind that all other things being equal, loan amount and zip code/state make a big difference. When I was preparing my refi in NC in late April/early May, I was finding 0.25% lower rates if my loan balance was above $200k and bigger credits if my loan balance was above $300k. And the same loan numbers with a CA zip code cheaper than a NC zip code.

Heck, my mom lives only about two hours away and her zip code was right off the bat 0.25% cheaper at many lenders with my numbers.
Thanks, Brandon! That makes sense. I was wondering if that might be the case.
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BrandonBogle
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Post by BrandonBogle »

BrandonBogle wrote: Fri May 22, 2020 10:55 am When I was shopping around for a similarly sized refi, I found that credit unions were more competitive for me than direct lenders (on rates) or brokers (on closing costs). Thankfully, Better Mortgage offers to try and beat other offers, so I sent them my credit union offer with a competitive rate (back in the end of April at least) and competitive closing costs. All told, I ended up with a 0.25% lower interest rate than the credit union and with no closing costs to boot.

Note, this was on a 15-year mortgage, but the same should apply with simply a higher rate on a 30-year mortgage. Happy hunting!
In a stroke of irony, one of the lenders I checked around with was Wells Fargo. Even with relationship discounts and willing to move assets there, WF wasn't as competitive as my local CU and Better (after matching that CU). Well today, while I still see my mortgage at The Money Source and MERS still says it is owned/invested by Better Mortgage, I see the mortgage at Wells Fargo when I log in. I suspect in the next few days I will get a notice saying servicing is being transferred to WF. We will see if ownership remains with Better or gets sold elsewhere. FYI, my first payment isn't due until July.
WhyRWeHere
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Post by WhyRWeHere »

Hunter123 wrote: Fri Jun 12, 2020 9:30 am Those of you who are ref-ing with Chase, how do you manage to get in touch with anyone there? We submitted an online application 3 weeks ago and have received zero response. A person is assigned to our refi but their mailbox is full and not accepting messages. Called the main number, were transferred to the mortgage section where attempt to speak with an operator resulted in a disconnected call. Submitted request for mortgage payoff which arrived with no offer of rate adjustment.

We are moving ahead with a different company but just wondering since I see others on this site refinancing and interacting with them. Are they no longer offering refis?
I was wondering about this too. Started looking into refinancing a little over a month ago. Present mortgage is with Chase. Did the mortgage payoff request. Then tried to do a refi through Chase (got pricing for both regular refi and cash out) and their rates were a lot higher than I found elsewhere. After speaking with the rep and receiving an email with his info, he never reached out to me again, and I didn't try him because the initial rates were not competitive. And I haven't gotten any offers from Chase to reduce my rate, like other have here.
WhyRWeHere
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Post by WhyRWeHere »

2quiker wrote: Fri Jun 12, 2020 12:18 pm How long do you have to wait to refi? I just finished refinanced with Better( won't be using them again, horrible experience)I don't see anything in my paper work stating that I have to wait unless I am missing something...? My first refi was through One True Loan, that was a great experience. I didn't go with One True Loan this time around because Better had better rate and credits but as I found out cheaper is not always better...
Just wondering why your experience with Better was bad? I don't like how they make you bring offers to then to beat, instead of just giving you a good rate to begin with. But it looks like I may go with them, especially because of the AmEx credit. Any recommendations to avoid having a similar experience as yours?
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nps
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Post by nps »

TheOscarGuy wrote: Sat Jun 13, 2020 6:21 am
nps wrote: Sat Jun 13, 2020 6:03 am Ask them to waive escrow. I would consider it worth it even if waiving increases lender costs a bit.
Is it just as easy as asking. I thought you had to typically wait for mortgage to close, and then approach the lender/servicer to ask that they remove escrow account.
That's been my experience. Just ask for it. I assume their approval depends on factors like LTV, and it may cost a little more.
Qw1221wq
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Post by Qw1221wq »

1andDone wrote: Sat Jun 13, 2020 12:32 am
lcdx22 wrote: Sat Jun 13, 2020 12:12 am
lcdx22 wrote: Mon Jun 01, 2020 12:59 pm Just locked in with Better.com a 15 year @ 2.5%. Cost excluding escrow $226. Their initial rates were not competitive at all. Best I got was 2.5% with $1226 closing with LenderFi. Sent the offer to Better.com, they matched rate and beat it by a $1000. Also confirmed that I will also get the $2500 AMEX credit.
Just a quick update. Better has been moving pretty fast on this. But today I received an updated loan estimate and they jacked up the amount of escrow they want funded. They now want full year of taxes and 6 months of insurance upfront. That's double the amount of my escrow balance with my current lender.

Anyone experience this with any of your refinances so far?
For my current loan (refi back in 2016) I paid a year of home insurance and property taxes at closing. So, not unheard of.
Wow a whole year? Around here thats like 30k. Do you have that much just sitting around?
mt2k
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Post by mt2k »

nps wrote: Sat Jun 13, 2020 11:00 am
TheOscarGuy wrote: Sat Jun 13, 2020 6:21 am
nps wrote: Sat Jun 13, 2020 6:03 am Ask them to waive escrow. I would consider it worth it even if waiving increases lender costs a bit.
Is it just as easy as asking. I thought you had to typically wait for mortgage to close, and then approach the lender/servicer to ask that they remove escrow account.
That's been my experience. Just ask for it. I assume their approval depends on factors like LTV, and it may cost a little more.
Agree. Just ask them to waive escrow. They may reduce the lender credit amount or charge a little higher rate but IMO it's worth it. You manage your own money, insurance and taxes and don't have to depend on some third parties. Plus it frees up the capital you are supposed to put in escrow.
VCC
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Post by VCC »

Most lenders will charge extra for an escrow waiver. UWM is one of the few that won't. Those of you w/ balances below 200k will probably not get the best rates. I don't think Better will match on a loan below 200k or over 500k. Owning doesn't offer no closing cost loans below 200k. On Slick Deals forum there are people saying they're getting 30yr 2.75% w/ lender credits by shopping around & getting Better to beat the best competing offer by $1k + $2500 credit on top.
finite_difference
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Post by finite_difference »

1andDone wrote: Fri Jun 12, 2020 10:06 pm
snailderby wrote: Fri Jun 12, 2020 10:03 pm
1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
How are you getting such good offers?! When I ran the online quote tool at LenderFi or Better today, assuming a credit score above 740 and a LTV below 75%, a no-cost refinance was landing me somewhere in the 3.5% to 3.875% range.
As others have pointed out, with Better you have to find a competing offer for them to "beat" since their offers are not very good. I put in a request at Lending Tree and one of the brokers who responded provided competitive quotes that I then sent to Better.
I’d like to congratulate you on an extremely good deal. I wish Better operated in all states.

What state and loan amount? When did you get your quotes?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh
1andDone
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Post by 1andDone »

finite_difference wrote: Sat Jun 13, 2020 1:46 pm
1andDone wrote: Fri Jun 12, 2020 10:06 pm
snailderby wrote: Fri Jun 12, 2020 10:03 pm
1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
How are you getting such good offers?! When I ran the online quote tool at LenderFi or Better today, assuming a credit score above 740 and a LTV below 75%, a no-cost refinance was landing me somewhere in the 3.5% to 3.875% range.
As others have pointed out, with Better you have to find a competing offer for them to "beat" since their offers are not very good. I put in a request at Lending Tree and one of the brokers who responded provided competitive quotes that I then sent to Better.
I’d like to congratulate you on an extremely good deal. I wish Better operated in all states.

What state and loan amount? When did you get your quotes?
GA $285k. Got initial quotes Thursday and locked the next day.
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anon_investor
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Post by anon_investor »

BrandonBogle wrote: Sat Jun 13, 2020 9:43 am
BrandonBogle wrote: Fri May 22, 2020 10:55 am When I was shopping around for a similarly sized refi, I found that credit unions were more competitive for me than direct lenders (on rates) or brokers (on closing costs). Thankfully, Better Mortgage offers to try and beat other offers, so I sent them my credit union offer with a competitive rate (back in the end of April at least) and competitive closing costs. All told, I ended up with a 0.25% lower interest rate than the credit union and with no closing costs to boot.

Note, this was on a 15-year mortgage, but the same should apply with simply a higher rate on a 30-year mortgage. Happy hunting!
In a stroke of irony, one of the lenders I checked around with was Wells Fargo. Even with relationship discounts and willing to move assets there, WF wasn't as competitive as my local CU and Better (after matching that CU). Well today, while I still see my mortgage at The Money Source and MERS still says it is owned/invested by Better Mortgage, I see the mortgage at Wells Fargo when I log in. I suspect in the next few days I will get a notice saying servicing is being transferred to WF. We will see if ownership remains with Better or gets sold elsewhere. FYI, my first payment isn't due until July.
Haha. With my luck my servicing will be transferred from The Money Source to Wells Fargo (where my loan was before I did my refi with Ally Bank).
dicejam
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Post by dicejam »

wtarbing wrote: Thu Jun 11, 2020 11:29 am
ellvizzle wrote: Wed Jun 10, 2020 10:02 pm Had a very good experience with better.com, despite not knowing about that Amex deal I now see mentioned in the thread. From lock to close 3 weeks, and then payoff finalized no problem. Was only 1 year into a 30 year at 4%, which I thought was a good rate a year ago. Refi at 2.875% for a 30 year. ~$2200 lender credits which more than covered A+B+C that totaled ~$1500. The portal was really convenient and I felt like I always knew who I could email or call if I had a question. In order to get this rate I did have to shop around and provide a competitive offer.
I'm very interested to find a deal like you presented to better.com.
if you dont mind telling, what lender did you use to get 30yr rate @ 2.875?

How much does LTV matter once you are at 20% equity? I understand that conforming loan ( <510k), high balance conforming ( > 510k but not jumbo) and then jumbo loans have different rates.

Also if one is getting rates around 3.25% on one income, is it worthwhile to have 2 people/incomes on the loan to get better rate?
jw2s
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Post by jw2s »

I need help from more knowledgeable people.

I think I have a good deal, but would like seasoned refinancer's to alert me to any red flags...

2.5yrs into a 30yr fixed 3.875% mortgage. No plans of moving. No PMI.

LTV: 65%
Locked a 2.875% 30yr $271,500 fixed with the following break-down:

A. Origination Charges: $27.50 (wire fee)

B. Services Borrower did not shop for: $259(credit report, flood cert, settlement agency vetting fee, technology fee)

C. Services Borrower did shop for: $2,021 Title.

D. Loan costs=$2,308

E. Taxes/Govt fees: $222

F. Prepaids: $2,390

G. Initial escrow payments at closing: $1,099

H. Blank

I. Total Other Costs: $3,712

J. Total Closing Costs: $6,020

First time refinancer so I'm a novice. I post here because I find your collective knowledge invaluable. An analogy is you looking at an EKG and it means nothing to you. Your doctor friend can look at it and in about 10 seconds say looks great or Oooooh...this is concerning...

1) Section 'I' are things I pay anyway, correct(except taxes and gov't fees which are only $222)?

2) I see I have no lender credits. I also see I have no origination fee. Should I ask for a lender credit for anything? Or is the elimination of an origination fee good enough?

3) I don't plan on bringing anything to the table at closing. Everything is 'rolled in'. I plan on putting the $2,000 I'll get in escrow from my former lender into principal when it is refunded.

4) Anything I missed?
VCC
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Post by VCC »

How much does LTV matter once you are at 20% equity? I understand that conforming loan ( <510k), high balance conforming ( > 510k but not jumbo) and then jumbo loans have different rates.
LTV can have a big impact on upfront fees. Check out Fannie Mae LLPA table. For a 30 yr 500k loan at 80% LTV there is a .5% fee, or $2500. At 75% LTV the fee is .25%, or $1250 & at 60% LTV there is no fee.
1andDone
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Re: Refinance Mega Thread

Post by 1andDone »

jw2s wrote: Sat Jun 13, 2020 2:25 pm I need help from more knowledgeable people.

I think I have a good deal, but would like seasoned refinancer's to alert me to any red flags...

2.5yrs into a 30yr fixed 3.875% mortgage. No plans of moving. No PMI.

LTV: 65%
Locked a 2.875% 30yr $271,500 fixed with the following break-down:

A. Origination Charges: $27.50 (wire fee)

B. Services Borrower did not shop for: $259(credit report, flood cert, settlement agency vetting fee, technology fee)

C. Services Borrower did shop for: $2,021 Title.

D. Loan costs=$2,308

E. Taxes/Govt fees: $222

F. Prepaids: $2,390

G. Initial escrow payments at closing: $1,099

H. Blank

I. Total Other Costs: $3,712

J. Total Closing Costs: $6,020

First time refinancer so I'm a novice. I post here because I find your collective knowledge invaluable. An analogy is you looking at an EKG and it means nothing to you. Your doctor friend can look at it and in about 10 seconds say looks great or Oooooh...this is concerning...

1) Section 'I' are things I pay anyway, correct(except taxes and gov't fees which are only $222)?

2) I see I have no lender credits. I also see I have no origination fee. Should I ask for a lender credit for anything? Or is the elimination of an origination fee good enough?

3) I don't plan on bringing anything to the table at closing. Everything is 'rolled in'. I plan on putting the $2,000 I'll get in escrow from my former lender into principal when it is refunded.

4) Anything I missed?

I consider a “no-cost” refi to be one where the lender credit covers everything except prepaids and escrow. I was able to get a 2.875% with ~$2,100 credit, which would almost cover those items. I decided to go up to a 3% with a larger credit to more than cover those costs. Your lender will likely offer a credit in exchange for a higher rate. I personally wouldn’t roll closing costs into the loan or pay costs (except prepaid/escrow) to refi since I don’t know how long I will be in my house. But the calculus may be different for you.
snailderby
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Re: Refinance Mega Thread

Post by snailderby »

Any thoughts on going through a UWM broker rather than a direct lender? I assume the downside would be having to pay the broker's commission in exchange for access to wholesale rates? And how would you go about finding a good broker in your state?
chuckb84
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Location: New Mexico

Re: Refinance Mega Thread

Post by chuckb84 »

Well, it has been a journey, but today we closed our refinance with lenderfi. We started in March(!!), locked 3.375, submitted all the documents, and then....everything just shut down. All the companies that lenderfi works with sent employees home and the process just froze.

I made MANY phone calls and sent MANY emails to lenderfi, my HELOC company, etc, but the process was just stuck.

Lenderfi extended the loan lock from 30 days to 47. The 30-day lock expired. Then the 47 day lock expired.

There title company and my HELOC company took over a month (really!) to get a subordination package printed, mailed, approved and returned.

Once it was all done, lenderfi got us 3.0% with about a $3200 credit to closing, so it was 3.0% with zero cost. We'll now save about $350/month.

Quite a process, but worth it in the end!
VCC
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Re: Refinance Mega Thread

Post by VCC »

Go with whoever gives you the best rate w/ no closing costs. It may be a direct lender or a broker, although if you qualify for the $2500 AMEX credit through Better.com it'll be hard for anyone to beat that. UWM has a list of brokers they work with at findamortgagebroker.com. Other posters on this thread have listed brokers they've used, or ask friends/family/real estate agents for referrals.
HoberMallow
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Location: SoCal

Re: Refinance Mega Thread

Post by HoberMallow »

About to close on a refi with Better.

$825k house value
$490k loan
2.5% for 15 years
$2800 in lender credits
No escrow
No appraisal
Southern CA
Locked rate on June 4, scheduled to sign closing docs on June 16

This is our second refi this year. In January we switched from a 3.75% 30 year to a 3% 15 year with Sebonic/Cardinal Financial.

This time I contacted Owning, LenderFi, Northpointe, and Better. Sebonic wouldn’t give me a quote since it had been less than 6 months since my last refinance.

Northpointe gave me a terrible offer, 3.375% plus a few thousand in lender charges. I know a lot of Bogleheads got good rates from them. I’m not sure what they didn’t like about me.

Better’s initial offer wasn’t great either. I sent them the loan estimate from LenderFi and they beat it by $1000.

Owning was slow to respond so I never really considered them.

After all the fees, Better is paying me almost $1000 to save $200 per month in interest. Not too bad.
snailderby
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Re: Refinance Mega Thread

Post by snailderby »

VCC wrote: Sat Jun 13, 2020 5:28 pm Go with whoever gives you the best rate w/ no closing costs. It may be a direct lender or a broker, although if you qualify for the $2500 AMEX credit through Better.com it'll be hard for anyone to beat that. UWM has a list of brokers they work with at findamortgagebroker.com. Other posters on this thread have listed brokers they've used, or ask friends/family/real estate agents for referrals.
Thank you, VCC!
Crazy_Aussie
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Location: San Antonio, TX

Re: Refinance Mega Thread

Post by Crazy_Aussie »

Texas peeps shopping for competitive quotes : AHC Lending just increased their lender credits to $2700+ from previous $1500+ .
Some of the other closing costs increased slightly, but overall it is $1000 improvement for me.

I emailed that quote to myself from their public website, so I'll be sending it to BETTER to try to get them to match again.
I've been checking each day, and I've seen their quotes vary slightly but nothing this dramatic before.
So not sure how long this offer would be available.
But I will keep checking, and send the best quote thru to BETTER for 1 last match.
jharkin
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Location: Boston suburbs

Re: Refinance Mega Thread

Post by jharkin »

snailderby wrote: Fri Jun 12, 2020 10:03 pm
1andDone wrote: Fri Jun 12, 2020 7:38 pm Locked today with Better for 3% 30 yr fixed with ~$3,500 credit. Was also offered 2.875% with ~$2,100 credit. Used a competing offer from UWM to match and Better beat it. After factoring in the $2,500 AMEX credit this should be a pretty lucrative refi (currently at 3.5%).
How are you getting such good offers?!When I ran the online quote tool at LenderFi or Better today, assuming a credit score above 740 and a LTV below 75%, a no-cost refinance was landing me somewhere in the 3.5% range. I would jump at the chance to refinance at 3.0% with a $3500 credit.
The market is very volatile. Thu afternoon LF online quoted me 3.0 no fee..l when I put in the application Friday morning to get a written estimate it was up to 3.125 with a fraction of a point. My Costo guy was unable to match.

Today(Sunday) the web tool is showing 3.375.

Hope I didn’t miss the boat.....
ZMonet
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Re: Refinance Mega Thread

Post by ZMonet »

I have ~7 years left on my mortgage that has a $240k balance at a 2.75% rate (originally 15-year loan). I wouldn't mind rolling into a 10-year (or less) at 2.5% but when I look up rates at LenderFi, Aimloan, and Better I can't seem to make the math work. We have outstanding credit. Is my current balance and interest rate too low to make the math work on a refi?
ellvizzle
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Re: Refinance Mega Thread

Post by ellvizzle »

ZMonet wrote: Sun Jun 14, 2020 7:04 am I have ~7 years left on my mortgage that has a $240k balance at a 2.75% rate (originally 15-year loan). I wouldn't mind rolling into a 10-year (or less) at 2.5% but when I look up rates at LenderFi, Aimloan, and Better I can't seem to make the math work. We have outstanding credit. Is my current balance and interest rate too low to make the math work on a refi?
Since it sounds like it’s pretty volatile right now it is unclear to me if the rates you can easily find on their sites are accurate or not. However in my experience when I was on the hunt last month I found that the posted rates on lenders’ sites were much worse than what I was able to secure with them. I just had to have conversations with lenders to show that I was serious and also bring in some competitive quotes to get juices flowing.
Gadget
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Re: Refinance Mega Thread

Post by Gadget »

Just got a better.com counter to LenderFi for 2.375% on a 15 year fixed with $3500 closing costs, which with the $2500 amex credit would be just $1000 closing costs.

It seems like the common advice around here is to have $0 closing costs, but this one looks tempting. We'll be staying in this home for years if my cloudy crystal ball is accurate.

How often have bogleheads sent Loan Estimates back and forth between companies? Is there a point where it can make them mad? Or do you just keep sending them back and forth until one no longer lowers their offer?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Gadget wrote: Sun Jun 14, 2020 10:32 am Just got a better.com counter to LenderFi for 2.375% on a 15 year fixed with $3500 closing costs, which with the $2500 amex credit would be just $1000 closing costs.

It seems like the common advice around here is to have $0 closing costs, but this one looks tempting. We'll be staying in this home for years if my cloudy crystal ball is accurate.
Since Better changed their offer to compete with LenderFi, your rate table will have been updated with this offer. If you haven’t locked yet, look at the different options for the 15-year and what is the rate for one with about $1k less in points?
VCC
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Re: Refinance Mega Thread

Post by VCC »

When you lock a rate, you also lock the whole rate table. You can change interest rates up or down, go from 30 yr to 25 yr to 20 yr up until signing closing papers w/ the notary. So if you later decide that you want a slightly higher rate w/ enough lender credits to cover all closing costs, prepaid interest, and escrow you can.
tigerone
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Re: Refinance Mega Thread

Post by tigerone »

Does anyone have any current experience with cash out refi? Have a $1.8M home value, would like to do a cash out refi either at the conforming loan limit or a jumbo up to 80% LTV.

Looking for 15 year fixed, and no points rate somewhere between 2.5% and 2.875%.
VCC
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Re: Refinance Mega Thread

Post by VCC »

You can get cash out pricing on Aimloan, Zillow, & Mortgage Professor w/o having to input personal info.
2quiker
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Re: Refinance Mega Thread

Post by 2quiker »

Question for the folks that refinanced through Better and qualified for the appraisal waver, how long did it take to get your appraisal credit back onto your credit card from Better?
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