Refinance Mega Thread

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
mtwhmemn
Posts: 266
Joined: Tue Jul 03, 2018 12:07 pm

Re: Refinance Mega Thread

Post by mtwhmemn »

NDS wrote: Fri Jul 10, 2020 9:58 am I haven't read all 58 pages of posts in this thread, curious if there's a post - or something in the forum wiki - that explains what situations are attractive to refi providers to provide good deals, vs what's not. I'd reached out to a couple of refi providers whose sites provided me far worse #s than what's been shared on this thread, and only comments I'd get back were something like "not for your situation". 750+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.
Same here. 800+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.

Maybe it is geographic location? I don't know. I'm going to sit on the sidelines for a few months and then try again. There is the possibility rates will go lower. I'm in a 3.875% 30 and only owe $190K on a 275K house. I refied last year this time so my rate isn't awful, but wanting to do better and likely do a 20 yr.

If you figure it out let me know!
Monsterflockster
Posts: 530
Joined: Thu Nov 21, 2019 12:03 am

Re: Refinance Mega Thread

Post by Monsterflockster »

rma2225 wrote: Sun Jul 12, 2020 7:50 pm Hi all,

So much good content on this thread and I'm a 1st time poster but I'm curious how everyone is getting these no cost refinances. Is my current financial situation not as strong as I think? Wife and I are 35yrs old. 220K income. 350K liquid assets(checking/savings/brokerage). 20K in combined auto and student loans (3%). 790 credit score
25yrs left on Mortgage(3.75%), Loan amount=270K. Approximate House value=470K. State= PA

Current offers:
Local mortgage company that initiated home loan- 2.875% 30yr; 5900 in closing costs (not including pre-payments/escrow)

New American Funding- 2.875% 30yr; 3900 in closing costs (not including pre-payments/escrow)

LenderFi- 2.584%APR; 20yr; 4900 in closing costs including $1800 in points (not including pre-payments/escrow)

Better- 3.375% 30yrs; 1900 in closing costs(not including pre-payments/escrow)

I don't find any of these offers competitive at all compared to the stories shares here. I don't even think I'm looking for the perfect deal, just reasonable= 2.75-2.875% 20-30yr mortgage with <1500 in closing costs. Is this due to our personal financial situation? Living in PA? I feel like non of these offers are even worth pinning against each other considering how far away they are to my goal? Am I doing something wrong?
It is likely your state and loan amount. The higher the loan up to the conforming limits (or just over) make more money. Also loans in HCOLA in California seem to be getting the very best rates so it is likely good for your state.

Just tell them what you want to close the deal... you never know.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
User avatar
BrandonBogle
Posts: 3648
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

mtwhmemn wrote: Mon Jul 13, 2020 8:07 am
NDS wrote: Fri Jul 10, 2020 9:58 am I haven't read all 58 pages of posts in this thread, curious if there's a post - or something in the forum wiki - that explains what situations are attractive to refi providers to provide good deals, vs what's not. I'd reached out to a couple of refi providers whose sites provided me far worse #s than what's been shared on this thread, and only comments I'd get back were something like "not for your situation". 750+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.
Same here. 800+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.

Maybe it is geographic location? I don't know. I'm going to sit on the sidelines for a few months and then try again. There is the possibility rates will go lower. I'm in a 3.875% 30 and only owe $190K on a 275K house. I refied last year this time so my rate isn't awful, but wanting to do better and likely do a 20 yr.

If you figure it out let me know!
Pro-tip, consider having an escrow financing your closing costs. $200k is often a lynchpin for cheaper pricing. By taking an escrow and financing that amount, you may be able to push over that line. In my case, my loan is actually a few hundred cheaper by financing my closing costs because it pushed me over the line into a cheaper bracket. Weird that borrowing an extra few thousand reduced my closing costs! Otherwise, I'm usually against financing closing costs. I may just make a lump sum payment to cover those with my first payment.
mtwhmemn
Posts: 266
Joined: Tue Jul 03, 2018 12:07 pm

Re: Refinance Mega Thread

Post by mtwhmemn »

BrandonBogle wrote: Mon Jul 13, 2020 10:05 am
mtwhmemn wrote: Mon Jul 13, 2020 8:07 am
NDS wrote: Fri Jul 10, 2020 9:58 am I haven't read all 58 pages of posts in this thread, curious if there's a post - or something in the forum wiki - that explains what situations are attractive to refi providers to provide good deals, vs what's not. I'd reached out to a couple of refi providers whose sites provided me far worse #s than what's been shared on this thread, and only comments I'd get back were something like "not for your situation". 750+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.
Same here. 800+ credit score, income well above what would be needed by ratio to loan value, etc. Don't get it.

Maybe it is geographic location? I don't know. I'm going to sit on the sidelines for a few months and then try again. There is the possibility rates will go lower. I'm in a 3.875% 30 and only owe $190K on a 275K house. I refied last year this time so my rate isn't awful, but wanting to do better and likely do a 20 yr.

If you figure it out let me know!
Pro-tip, consider having an escrow financing your closing costs. $200k is often a lynchpin for cheaper pricing. By taking an escrow and financing that amount, you may be able to push over that line. In my case, my loan is actually a few hundred cheaper by financing my closing costs because it pushed me over the line into a cheaper bracket. Weird that borrowing an extra few thousand reduced my closing costs! Otherwise, I'm usually against financing closing costs. I may just make a lump sum payment to cover those with my first payment.
Thanks for the tip!
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

itsallaboutme wrote: Mon Jul 13, 2020 9:05 am I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
skyisgrey
Posts: 3
Joined: Mon Jul 13, 2020 11:12 am

Re: Refinance Mega Thread

Post by skyisgrey »

I've gotten to the point with two lenders where I log in to their document repositories, review twenty different loan documents, and sign the Uniform Residential Loan Application. As I understand it, after I do this, the proposed loan goes to their underwriting department, who reviews my income, my assets, my tax returns, my credit rating, and decides whether or not to actually offer me a loan.

Here's the problem: the Income part of the URLA that they filled out for me to sign says that I receive Military Combat Pay. I don't. They clearly made some clerical error in filling out the form. I told the salesman that I couldn't sign it, and here's his response:

"Good Morning,

Please know that Underwriting will calculate the income off of the supporting documents provided. Please sign as is."
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

ChiKid24 wrote: Mon Jul 13, 2020 10:39 am
itsallaboutme wrote: Mon Jul 13, 2020 9:05 am I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
3of10
Posts: 150
Joined: Tue Jun 30, 2020 7:37 am

Re: Refinance Mega Thread

Post by 3of10 »

rma2225 wrote: Sun Jul 12, 2020 7:50 pm Hi all,

So much good content on this thread and I'm a 1st time poster but I'm curious how everyone is getting these no cost refinances. Is my current financial situation not as strong as I think? Wife and I are 35yrs old. 220K income. 350K liquid assets(checking/savings/brokerage). 20K in combined auto and student loans (3%). 790 credit score
25yrs left on Mortgage(3.75%), Loan amount=270K. Approximate House value=470K. State= PA

Current offers:
Local mortgage company that initiated home loan- 2.875% 30yr; 5900 in closing costs (not including pre-payments/escrow)

New American Funding- 2.875% 30yr; 3900 in closing costs (not including pre-payments/escrow)

LenderFi- 2.584%APR; 20yr; 4900 in closing costs including $1800 in points (not including pre-payments/escrow)

Better- 3.375% 30yrs; 1900 in closing costs(not including pre-payments/escrow)

I don't find any of these offers competitive at all compared to the stories shares here. I don't even think I'm looking for the perfect deal, just reasonable= 2.75-2.875% 20-30yr mortgage with <1500 in closing costs. Is this due to our personal financial situation? Living in PA? I feel like non of these offers are even worth pinning against each other considering how far away they are to my goal? Am I doing something wrong?
You're providing too many details in your update, which are not needed for a LE. By law, all you need to disclose to a lender is (name, property address, income, SS #, current loan balance, estimated value of house). You do not need to verify any of this for a LE.

As for the actual (not verbal) LE quotes you've received, if you want to get your foot in the door, then send the "New American Funding" LE of 2.875% to Better to see if they can match or beat it. Remember, with Better you can get the Amex $2500 credit as well. This appears to be in the range you've listed.
"You don't stop playing because you're old. You're old because you've stopped playing"
skyisgrey
Posts: 3
Joined: Mon Jul 13, 2020 11:12 am

Re: Refinance Mega Thread

Post by skyisgrey »

I've reached the point with two different lenders where I log in to a document depository to review ~twenty loan documents, including the Notice of Intent to Proceed, the Loan Estimate and the Uniform Residential Loan Application. I'm supposed to digitally sign all the sections of the URLA, agreeing that the info about income and assets is "true and correct."

But the forms are wrong. A little, and a lot.

For one lender, it's clear that they made a big clerical error in filling out the form for me to sign. Here's what I told them last night, as I reviewed the form:

"the Loan Application has combined someone else's information with our information.We do not get military combat pay, or any of the military income that is listed on the application. All the other information derived from the on-line application is correct, but this is wrong. And we have to change it so that I can sign it."

Here's what the salesman responded this morning:

"Good Morning,
Please know that Underwriting will calculate the income off of the supporting documents provided. Please sign as is."


Is this normal? As I understand it, this URLA is preliminary, and the LE is preliminary, and they don't mean anything until the salesman submits it to the "Underwriting", who then generate a final offer to me, which I can accept, or negotiate changes.....but I don't want to sign something that is not true in the process. Am I wrong?

What's your advice about how to proceed? How does this sequence of back and forth with the lender usually unfold? And what does it mean in this process to "lock" a rate, or to finally agree to loan costs, like assessors fee?
AndMan
Posts: 30
Joined: Tue Feb 06, 2018 7:14 pm

Re: Refinance Mega Thread

Post by AndMan »

Having similar issues myself. Loan depot messed up the rate on our initial LE, then after days and days trying to get it fixed they finally corrected the rate, only to see the fees/loan amount increase. Still havent been able to get that correct.

Lenderfi has been equally frustrating. Difficult to talk to a real person there.
User avatar
BrandonBogle
Posts: 3648
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

skyisgrey wrote: Mon Jul 13, 2020 12:07 pm "the Loan Application has combined someone else's information with our information.We do not get military combat pay, or any of the military income that is listed on the application. All the other information derived from the on-line application is correct, but this is wrong. And we have to change it so that I can sign it."

Here's what the salesman responded this morning:

"Good Morning,
Please know that Underwriting will calculate the income off of the supporting documents provided. Please sign as is."
If income amounts and/or liability and asset amounts have even a 20% variance, I wouldn't be concerned. However, in your case where it is listing additional income that you do not get nor have provided them with info on, then I would stand firm and demand their disclosures team correct that. I say this b/c you don't want to get complications further down the line because of a mixed file. What if underwriting sees the military thing there and rather than realizing the mistake and dropping it, starts asking for your deployment papers or other such info. You wouldn't want underwriting hounding you for doc b/c of such a mistake.
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

itsallaboutme wrote: Mon Jul 13, 2020 11:38 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am
itsallaboutme wrote: Mon Jul 13, 2020 9:05 am I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
3of10
Posts: 150
Joined: Tue Jun 30, 2020 7:37 am

Re: Refinance Mega Thread

Post by 3of10 »

Note to all: Be careful of the LE deadlines when sending a competitor's LE to a lender such as Better. Better earlier rejected another lender's LE because it was dated beyond the required "1 business day from its date of submission to Better Mortgage". If this requirement is not standard (e.g. Better.com requirement only), then best to confirm from each lender on how they handle LE quotes from a time perspective.
"You don't stop playing because you're old. You're old because you've stopped playing"
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

ChiKid24 wrote: Mon Jul 13, 2020 12:56 pm
itsallaboutme wrote: Mon Jul 13, 2020 11:38 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am
itsallaboutme wrote: Mon Jul 13, 2020 9:05 am I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

itsallaboutme wrote: Mon Jul 13, 2020 9:05 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
$8400 closing cost on a $300k loan seems crazy to me. You need to stop listening to lenders and their sales language and look at the actual loan estimate to do your own calculation. Otherwise it is impossible to compare. They are required to send one to you.
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

itsallaboutme wrote: Mon Jul 13, 2020 1:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 12:56 pm
itsallaboutme wrote: Mon Jul 13, 2020 11:38 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am
itsallaboutme wrote: Mon Jul 13, 2020 9:05 am I had a bankruptcy years ago which will be off of my credit next year mid March. My credit score is 735 right now do you think it's best to wait or try to get a refinance at one of these low rates? Not sure where the rates are heading up or down.
BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

ChiKid24 wrote: Mon Jul 13, 2020 1:30 pm
itsallaboutme wrote: Mon Jul 13, 2020 9:05 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
$8400 closing cost on a $300k loan seems crazy to me. You need to stop listening to lenders and their sales language and look at the actual loan estimate to do your own calculation. Otherwise it is impossible to compare. They are required to send one to you.
I actually got LoanDepot to go with $8000 closing cost $299k loan. so some of this information will be lower this is from the original Loan estimate
Origination Charges $8619
Services You Cannot Shop For $100
Services You Can Shop For $1385
Taxes and Other Government Fees $325
Section J shows D + I $13036 underneath it says Lender Credits to the right does not show anything so I guess that amount is lender credit? This is original from the time he said 10k closing now he says 8k so the numbers will be different I will update when I get them.

Also estimate I get back from escrow is $2780
Last edited by itsallaboutme on Mon Jul 13, 2020 2:44 pm, edited 1 time in total.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Mon Jul 13, 2020 2:31 pm
itsallaboutme wrote: Mon Jul 13, 2020 1:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 12:56 pm
itsallaboutme wrote: Mon Jul 13, 2020 11:38 am
ChiKid24 wrote: Mon Jul 13, 2020 10:39 am

BOTH. Refinance now to take advantage of low rates, but lock in something that is no/low cost. That way you aren't out anything significant out of pocket and have no sunk cost to refinance again down the road. Every lender will offer no cost options. It just means your rate will be slightly higher.

Example, Better had offered me 2.875% with a $1,500 credit to closing costs. But my closing costs were $2,500 so I would have been out $1,000. So I asked them to price me at 3%. When they priced it, that higher interest rate increased the lender credit to about $5,000 with no change to the closing costs. So I was able to go from 3.5% down to 3.0% and get paid $2,500 to do it.

I closed last week and rates were lower, so I'm now in the process of refinancing with Lenderfi at 2.75% with a credit to cover all closing costs. It takes some work and effort, but if you are willing to research and have lenders compete, you can save yourself 5-6 figures over the life of your loan.
Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
Where would I see this information?
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

itsallaboutme wrote: Mon Jul 13, 2020 2:43 pm
anon_investor wrote: Mon Jul 13, 2020 2:31 pm
itsallaboutme wrote: Mon Jul 13, 2020 1:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 12:56 pm
itsallaboutme wrote: Mon Jul 13, 2020 11:38 am

Thank you. Here is what I am being offered so far.

2.75% 299K same rate for 30 25 and 20 years rolling in 10k to the loan break even after 28.5 payments. I owe right now 286k in current loan and have FHA which is $188 a month extra in payments and 59,408k FHA left of total payments so,

30 year I save $350 a month from current loan. saving 11,703k plus the 59,408k FHA total life of loan
25 years I save $192 a month from current loan. saving 37,318k plus 59,408k FHA total life of loan
20 years pay $50 more a month. saving 62,048k plus 59,408k FHA total life of loan

There are other options one is 3.25% 295k loan still rolls over 6100k still saving months for 30 and 25 years but not that much most is about $289 for the 30 years. $136 for 25 years

Also 3.5% still rolls in 3900k

No rolling in but interest is 4.1%
It is only me on the loan my wife's credit is 695-700 so we tried with just my scores.

I am saving no matter what if I get out of the FHA loan should I jump on this? Better than my current lenders offer I would have loved to go with LEnderFI but from the forum I see LoanDepot is next best.
Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
Where would I see this information?
It would be in the Loan Estimate, they are supposed to show it to you.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Mon Jul 13, 2020 2:54 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:43 pm
anon_investor wrote: Mon Jul 13, 2020 2:31 pm
itsallaboutme wrote: Mon Jul 13, 2020 1:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 12:56 pm

Couple comments:

1) If the interest rate is the same for 30,25 or 20, I would do 30. Allows you to pay lower monthly payment if needed, but provides the flexibility to pay it off sooner if you want by making higher monthly payments.

2) There is a big difference between what is rolling into the new loan and costs. You need to look at the costs which are provided in your loan estimate. This is the sum of Section A (Origination Charges), Section B (Services You Cannot Shop For), Section C (Services You Can Shop For) and Section E (Taxes and Other Government Fees). Items in Section F (Prepaids) and Section G (Escrow) are things that might be rolling into the loan, but should not be counted as costs because you would be paying these anyway. Once you calculate the true costs, there should be a line item in Section J for Lender Credits. That line item should be larger with higher rate options. When people talk about "No Cost" loan, they are saying the lender credit offsets the costs in Sections A, B, C and E.
Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
Where would I see this information?
It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

itsallaboutme wrote: Mon Jul 13, 2020 2:58 pm
anon_investor wrote: Mon Jul 13, 2020 2:54 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:43 pm
anon_investor wrote: Mon Jul 13, 2020 2:31 pm
itsallaboutme wrote: Mon Jul 13, 2020 1:22 pm

Thank you so much I got another quote from quicken loan which seems to have beaten LoanDepot

2.75% $8400 closing cost loan amount $301,650 No appraisal needed. $2137 monthly. I get money back from escrow the loan officer said other lenders sometimes come back with different amounts because they don't count escrow or something like that. But he said they like to come back with loan looking better after paper work not worse. I live in NJ so escrow is high. I would get this money back minus taxes being paid before closing. Close in 35-40 days Also I have to pay $250 up front but it is given back after closing in cash to me. this is quicken loan.
Lower closing and same rate doesn't that mean it's better deal?
Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
Where would I see this information?
It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
That sounds like the costs of the loan are being rolled into your new loan. In my opinion that is a bad deal then...

For a "no cost" refi, the only items you should be paying for are "F. Prepaids" and "G. Initial Escrow Payment at Closing". All the other costs should be completely offset by lender credits. Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
BarDownHockey
Posts: 88
Joined: Sat Jun 15, 2019 3:58 pm

Re: Refinance Mega Thread

Post by BarDownHockey »

anon_investor wrote: Mon Jul 13, 2020 3:09 pm Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is this true? Wouldn't the payoff amount for your current mortgage be the outstanding principal plus accrued interest from the latest payment date through the closing date? For example, if:

- current mortgage outstanding principal is $200k
- payoff amount (from the original bank) is $203k
- no-cost refi (anything in A-C is 100% offset by a lender credit)
- E-G are $2k, but are being paid by borrower at closing and not rolling into the loan

Wouldn't the new loan be $203k? And, alternatively, if you rolled E-G into the loan, wouldn't the new loan be $205k?
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Mon Jul 13, 2020 3:09 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:58 pm
anon_investor wrote: Mon Jul 13, 2020 2:54 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:43 pm
anon_investor wrote: Mon Jul 13, 2020 2:31 pm

Is $8,400 entirely for the escrow? The only thing you should be paying is prepaids and escrow.
Where would I see this information?
It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
That sounds like the costs of the loan are being rolled into your new loan. In my opinion that is a bad deal then...

For a "no cost" refi, the only items you should be paying for are "F. Prepaids" and "G. Initial Escrow Payment at Closing". All the other costs should be completely offset by lender credits. Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is it possible for 2.75% just using F and G?
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

BarDownHockey wrote: Mon Jul 13, 2020 3:26 pm
anon_investor wrote: Mon Jul 13, 2020 3:09 pm Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is this true? Wouldn't the payoff amount for your current mortgage be the outstanding principal plus accrued interest from the latest payment date through the closing date? For example, if:

- current mortgage is $200k
- payoff amount (from the original bank) is $203k
- no-cost refi (anything in A-C is 100% offset by a lender credit)
- E-G are $2k, but are being paid by borrower at closing and not rolling into the loan

Wouldn't the new loan be $203k? And, alternatively, if you rolled E-G into the loan, wouldn't the new loan be $205k?
Thank you for correcting me, yes the full payoff amount would be the new principal. What I was trying to get at is that A-E should be completely offset by lender credits, and only F-G should be paid, and none of the costs from A-E should be rolled into the new loan principal. At least that is what I view as a true no cost refi. I completed one of these in May, and the lender credit was large enough that I ended up with $2k in credits applied to my prepaids+escrow. I am doing another refi now, where the lender credits completely offset A-E, and I am only paying F-G.
modest_man
Posts: 36
Joined: Tue May 07, 2013 10:37 am

Re: Refinance Mega Thread

Post by modest_man »

Quicken, Better, and LD both appear to balk at the notion of lender credits. LD quoted me $12K for a 265K loan at 2.75%, which appears ludicrous (at least Better was half that at 5300).

I wouldn't be surprised if they are turning away price shoppers due to the high influx of applications.
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

itsallaboutme wrote: Mon Jul 13, 2020 3:34 pm
anon_investor wrote: Mon Jul 13, 2020 3:09 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:58 pm
anon_investor wrote: Mon Jul 13, 2020 2:54 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:43 pm

Where would I see this information?
It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
That sounds like the costs of the loan are being rolled into your new loan. In my opinion that is a bad deal then...

For a "no cost" refi, the only items you should be paying for are "F. Prepaids" and "G. Initial Escrow Payment at Closing". All the other costs should be completely offset by lender credits. Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is it possible for 2.75% just using F and G?
Possible, definitely. Available right now, not sure. I was able to lock last week 2.75% 30 year fixed no cost (only F+G) from LenderFi. I know a few other people posted getting the same deal from LenderFi last week. But hopefully knowing that it is out there, helps your search. Good luck!
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Mon Jul 13, 2020 3:37 pm
itsallaboutme wrote: Mon Jul 13, 2020 3:34 pm
anon_investor wrote: Mon Jul 13, 2020 3:09 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:58 pm
anon_investor wrote: Mon Jul 13, 2020 2:54 pm

It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
That sounds like the costs of the loan are being rolled into your new loan. In my opinion that is a bad deal then...

For a "no cost" refi, the only items you should be paying for are "F. Prepaids" and "G. Initial Escrow Payment at Closing". All the other costs should be completely offset by lender credits. Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is it possible for 2.75% just using F and G?
Possible, definitely. Available right now, not sure. I was able to lock last week 2.75% 30 year fixed no cost (only F+G) from LenderFi. I know a few other people posted getting the same deal from LenderFi last week. But hopefully knowing that it is out there, helps your search. Good luck!
Thanks because Quicken and LoanDepot does not offer that. So I don't know where else to go. I locked in with LoanDepot before knowing this. But I can not accept the offer.
I don't see a way for them to give me loan for payoff amount and pay A-C he said if that is the case I would need to pay closing on my own.
StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

Re: Refinance Mega Thread

Post by StevenNJ1 »

Am I getting the best deal or what?

I see folks here getting money for refinancing and though to me it seems like a good deal what I am being offered, I am still curious.

State = NJ
Property value = 480k
Loan amount = 340k
Credit score = 800
Term = 20, 25, 30yr (broker said it doesn't matter until I go 15yr)
Enough money in the bank and good W2 income.

Dealing with 2 brokers at the same time.
Broker 1 = 2.75%, $2,500 cost (not including escrow taxes of 2-4 months and not doing property appraisal)
Broker 2 = 2.75%, $1,600 cost (not including escrow taxes of 2-4 months and not doing property appraisal)

Is this the best I can get or is there room to push?
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

itsallaboutme wrote: Mon Jul 13, 2020 2:42 pm
I actually got LoanDepot to go with $8000 closing cost $299k loan. so some of this information will be lower this is from the original Loan estimate
Origination Charges $8619
Services You Cannot Shop For $100
Services You Can Shop For $1385
Taxes and Other Government Fees $325
Section J shows D + I $13036 underneath it says Lender Credits to the right does not show anything so I guess that amount is lender credit? This is original from the time he said 10k closing now he says 8k so the numbers will be different I will update when I get them.

Also estimate I get back from escrow is $2780
This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

StevenNJ1 wrote: Mon Jul 13, 2020 3:46 pm Am I getting the best deal or what?

I see folks here getting money for refinancing and though to me it seems like a good deal what I am being offered, I am still curious.

State = NJ
Property value = 480k
Loan amount = 340k
Credit score = 800
Term = 20, 25, 30yr (broker said it doesn't matter until I go 15yr)
Enough money in the bank and good W2 income.

Dealing with 2 brokers at the same time.
Broker 1 = 2.75%, $2,500 cost (not including escrow taxes of 2-4 months and not doing property appraisal)
Broker 2 = 2.75%, $1,600 cost (not including escrow taxes of 2-4 months and not doing property appraisal)

Is this the best I can get or is there room to push?
For reasons stated previously, I'd push and see if they can provide true no cost loan option. Great if you can get it at 2.75%, but it might push your rate up to 2.875% or 3.0% to get enough in lender credit. Still preferable in my mind than paying any costs.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:42 pm
I actually got LoanDepot to go with $8000 closing cost $299k loan. so some of this information will be lower this is from the original Loan estimate
Origination Charges $8619
Services You Cannot Shop For $100
Services You Can Shop For $1385
Taxes and Other Government Fees $325
Section J shows D + I $13036 underneath it says Lender Credits to the right does not show anything so I guess that amount is lender credit? This is original from the time he said 10k closing now he says 8k so the numbers will be different I will update when I get them.

Also estimate I get back from escrow is $2780
This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.
Thank you I am going to call Sebonic Financial and see what they offer or if they have that type of deal. What lenders offer true no cost? Are all of these really bad deals if I am going to be out of the FHA loan and into a conventional? I will be saving $60k just for refinancing and 352 a month
The Quicken loan loan officer is also saying LoanDepot cannot close in time. He said he can close 30-45 days even faster since no appraisal is needed. And loan Depot is saying they can close 45-60 no appraisal needed so might be faster. Anyone have issues with anyone of them as far as closing?
I will see if I can get a better deal with both as far as A-C but lets see...
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

I have pennymac right now does anyone know if they offer lender credit? I am on hold with them it's been 30 minutes. I would like to know so I can see if I can get them to beat these offers. I am pretty sure they would want me to stay with them
soobaerodude
Posts: 43
Joined: Thu Feb 27, 2014 4:16 am

Re: Refinance Mega Thread

Post by soobaerodude »

ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.
This seems pretty good, what lender and what state are you in?
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

soobaerodude wrote: Mon Jul 13, 2020 4:54 pm
ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.
This seems pretty good, what lender and what state are you in?
That's exactly what I was saying to myself. I am in NJ so I am waiting to see what state the poster is in. Also based on what others are saying about nothing added to principal for new loan. Closest I am getting to original principal Is $297k loan amount where the payoff for me is $289k
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Mon Jul 13, 2020 3:37 pm
itsallaboutme wrote: Mon Jul 13, 2020 3:34 pm
anon_investor wrote: Mon Jul 13, 2020 3:09 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:58 pm
anon_investor wrote: Mon Jul 13, 2020 2:54 pm

It would be in the Loan Estimate, they are supposed to show it to you.
We went over loan estimate I am looking for the section where it would say. Only thing I see from the old loan estimate is Estimated Closing Costs Financed $12,486 the updated should be maybe $2000 less
That sounds like the costs of the loan are being rolled into your new loan. In my opinion that is a bad deal then...

For a "no cost" refi, the only items you should be paying for are "F. Prepaids" and "G. Initial Escrow Payment at Closing". All the other costs should be completely offset by lender credits. Additionally the principal for your new loan should be the same as your current outstanding principal (there should be no increase in your principal).
Is it possible for 2.75% just using F and G?
Possible, definitely. Available right now, not sure. I was able to lock last week 2.75% 30 year fixed no cost (only F+G) from LenderFi. I know a few other people posted getting the same deal from LenderFi last week. But hopefully knowing that it is out there, helps your search. Good luck!
I am still looking. The closest thing to principal cost for me is loan amount $297 30 year where payoff is $289k
StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

Re: Refinance Mega Thread

Post by StevenNJ1 »

ChiKid24 wrote: Mon Jul 13, 2020 4:02 pm
StevenNJ1 wrote: Mon Jul 13, 2020 3:46 pm Am I getting the best deal or what?

I see folks here getting money for refinancing and though to me it seems like a good deal what I am being offered, I am still curious.

State = NJ
Property value = 480k
Loan amount = 340k
Credit score = 800
Term = 20, 25, 30yr (broker said it doesn't matter until I go 15yr)
Enough money in the bank and good W2 income.

Dealing with 2 brokers at the same time.
Broker 1 = 2.75%, $2,500 cost (not including escrow taxes of 2-4 months and not doing property appraisal)
Broker 2 = 2.75%, $1,600 cost (not including escrow taxes of 2-4 months and not doing property appraisal)

Is this the best I can get or is there room to push?
For reasons stated previously, I'd push and see if they can provide true no cost loan option. Great if you can get it at 2.75%, but it might push your rate up to 2.875% or 3.0% to get enough in lender credit. Still preferable in my mind than paying any costs.

Sorry, but I so disagree ... what is that extra $1,600 compared to the savings over 25 years??? I calculated that 1% at the end of the day gets me about 120k in savings over the life of a loan. I think it's all about the %, considering that one plans to stay in the house for a long time.
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

itsallaboutme wrote: Mon Jul 13, 2020 4:14 pm
ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:42 pm
I actually got LoanDepot to go with $8000 closing cost $299k loan. so some of this information will be lower this is from the original Loan estimate
Origination Charges $8619
Services You Cannot Shop For $100
Services You Can Shop For $1385
Taxes and Other Government Fees $325
Section J shows D + I $13036 underneath it says Lender Credits to the right does not show anything so I guess that amount is lender credit? This is original from the time he said 10k closing now he says 8k so the numbers will be different I will update when I get them.

Also estimate I get back from escrow is $2780
This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.


Thank you I am going to call Sebonic Financial and see what they offer or if they have that type of deal. What lenders offer true no cost? Are all of these really bad deals if I am going to be out of the FHA loan and into a conventional? I will be saving $60k just for refinancing and 352 a month
The Quicken loan loan officer is also saying LoanDepot cannot close in time. He said he can close 30-45 days even faster since no appraisal is needed. And loan Depot is saying they can close 45-60 no appraisal needed so might be faster. Anyone have issues with anyone of them as far as closing?
I will see if I can get a better deal with both as far as A-C but lets see...
Sorry, let me be more clear. This "deal" is better than your current loan (which I assume was done at least a year ago), but I categorize it as awful given it's comparatively far inferior to what you (and countless others) should be able to get in today's rate environment. Every lender should offer a true no cost option. How? They simply increase the interest rate and give you a larger lender credit to cover the cost. So instead of 2.75% you go up to 3% but get a larger lender credit to (hopefully) cover the $10k in origination charges and fees.

What you save over the life of the loan is great, but what if rates continue to fall and you can get 2.5% in 5 months? Then you're out the $10k you are paying to closed this refi and redoing it again. Also what do you expect the Quicken loan officer to say about LoanDepot? He wants your business so bad mouthing a competitor seems pretty logical but not necessarily true. In the end it's your money, but my guess is others on this thread would balk at paying $10k in origination and fees on any refinancing today.
ChiKid24
Posts: 342
Joined: Fri Aug 09, 2019 3:43 pm

Re: Refinance Mega Thread

Post by ChiKid24 »

StevenNJ1 wrote: Mon Jul 13, 2020 5:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 4:02 pm
StevenNJ1 wrote: Mon Jul 13, 2020 3:46 pm Am I getting the best deal or what?

I see folks here getting money for refinancing and though to me it seems like a good deal what I am being offered, I am still curious.

State = NJ
Property value = 480k
Loan amount = 340k
Credit score = 800
Term = 20, 25, 30yr (broker said it doesn't matter until I go 15yr)
Enough money in the bank and good W2 income.

Dealing with 2 brokers at the same time.
Broker 1 = 2.75%, $2,500 cost (not including escrow taxes of 2-4 months and not doing property appraisal)
Broker 2 = 2.75%, $1,600 cost (not including escrow taxes of 2-4 months and not doing property appraisal)

Is this the best I can get or is there room to push?
For reasons stated previously, I'd push and see if they can provide true no cost loan option. Great if you can get it at 2.75%, but it might push your rate up to 2.875% or 3.0% to get enough in lender credit. Still preferable in my mind than paying any costs.

Sorry, but I so disagree ... what is that extra $1,600 compared to the savings over 25 years??? I calculated that 1% at the end of the day gets me about 120k in savings over the life of a loan. I think it's all about the %, considering that one plans to stay in the house for a long time.
Your post suggested you were looking for opinions which I provided. If you truly think you'll stay in the house for 25 years then yes $1,600 cost looks good on paper. You would be an outlier though as the median years in home ownership is almost half that. What if rates continue to fall and you can refinance to 2.5% or 2.25% in 6 months? Then the $1,600 spent out of pocket cost is wasted money. I choose to do no cost so that I can continue to chase the falling rates with no money out of pocket.
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

StevenNJ1 wrote: Mon Jul 13, 2020 5:22 pm
ChiKid24 wrote: Mon Jul 13, 2020 4:02 pm
StevenNJ1 wrote: Mon Jul 13, 2020 3:46 pm Am I getting the best deal or what?

I see folks here getting money for refinancing and though to me it seems like a good deal what I am being offered, I am still curious.

State = NJ
Property value = 480k
Loan amount = 340k
Credit score = 800
Term = 20, 25, 30yr (broker said it doesn't matter until I go 15yr)
Enough money in the bank and good W2 income.

Dealing with 2 brokers at the same time.
Broker 1 = 2.75%, $2,500 cost (not including escrow taxes of 2-4 months and not doing property appraisal)
Broker 2 = 2.75%, $1,600 cost (not including escrow taxes of 2-4 months and not doing property appraisal)

Is this the best I can get or is there room to push?
For reasons stated previously, I'd push and see if they can provide true no cost loan option. Great if you can get it at 2.75%, but it might push your rate up to 2.875% or 3.0% to get enough in lender credit. Still preferable in my mind than paying any costs.

Sorry, but I so disagree ... what is that extra $1,600 compared to the savings over 25 years??? I calculated that 1% at the end of the day gets me about 120k in savings over the life of a loan. I think it's all about the %, considering that one plans to stay in the house for a long time.
One reason to push for a no cost refi is to eliminate any break even period (time it takes for monthly savings vs no cost option, to make up for any upfront costs). This is beneficial in case you end up selling earlier than what the break even period would have been, or you get an opportunity to do another refi at an even lower rate before what would have been the break even period.

You should be comparing current offer vs no cost offer. Not your current mortgage. So the savings with the $1,600 cost option would be say 0.125% or 0.25%, not 1% vs. the no cost option. How many months would it take to recoup $1,600 vs. going with 2.875%/3%? I am guessing you will find it is likely over 5 years.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

ChiKid24 wrote: Mon Jul 13, 2020 5:28 pm
itsallaboutme wrote: Mon Jul 13, 2020 4:14 pm
ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm
itsallaboutme wrote: Mon Jul 13, 2020 2:42 pm
I actually got LoanDepot to go with $8000 closing cost $299k loan. so some of this information will be lower this is from the original Loan estimate
Origination Charges $8619
Services You Cannot Shop For $100
Services You Can Shop For $1385
Taxes and Other Government Fees $325
Section J shows D + I $13036 underneath it says Lender Credits to the right does not show anything so I guess that amount is lender credit? This is original from the time he said 10k closing now he says 8k so the numbers will be different I will update when I get them.

Also estimate I get back from escrow is $2780
This looks like a terrible deal. Origination charges of $8,619 on a $299k loan is ridiculous! Your total costs for this are over $10k ($8,619+100+1385+325). As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.

You should run away from this lender as fast as you can. Alternatively, ask him what rate he will provide on a loan that gives you a lender credit to cover costs in A, B, C, E.


Thank you I am going to call Sebonic Financial and see what they offer or if they have that type of deal. What lenders offer true no cost? Are all of these really bad deals if I am going to be out of the FHA loan and into a conventional? I will be saving $60k just for refinancing and 352 a month
The Quicken loan loan officer is also saying LoanDepot cannot close in time. He said he can close 30-45 days even faster since no appraisal is needed. And loan Depot is saying they can close 45-60 no appraisal needed so might be faster. Anyone have issues with anyone of them as far as closing?
I will see if I can get a better deal with both as far as A-C but lets see...
Sorry, let me be more clear. This "deal" is better than your current loan (which I assume was done at least a year ago), but I categorize it as awful given it's comparatively far inferior to what you (and countless others) should be able to get in today's rate environment. Every lender should offer a true no cost option. How? They simply increase the interest rate and give you a larger lender credit to cover the cost. So instead of 2.75% you go up to 3% but get a larger lender credit to (hopefully) cover the $10k in origination charges and fees.

What you save over the life of the loan is great, but what if rates continue to fall and you can get 2.5% in 5 months? Then you're out the $10k you are paying to closed this refi and redoing it again. Also what do you expect the Quicken loan officer to say about LoanDepot? He wants your business so bad mouthing a competitor seems pretty logical but not necessarily true. In the end it's your money, but my guess is others on this thread would balk at paying $10k in origination and fees on any refinancing today.
My loan was done 3 years 9 months to be exact. Now I understand. Even though the "no interest" is not being paid by me it still requires months to break even. So you're saying if things get better as far as interest it's best not to worry about that. LoanDepot did offer me the chance to refinance if it gets lower with no lending fees. So don't know if that helps. Not sure if me not paying lender fees to refinance again helps the situation you gave about what if rates go down and me being out the $10k. But I get what you're saying. Thanks this has been helpful. side note I actually submitted application with LenderFI online I just took a chance even though I heard they weren't taking applications so I guess I did it for nothing lol. I'll see what happens.
godsgift73
Posts: 3
Joined: Thu Mar 02, 2017 10:41 pm

Re: Refinance Mega Thread

Post by godsgift73 »

Monsterflockster wrote: Mon Jul 13, 2020 8:24 am
rma2225 wrote: Sun Jul 12, 2020 7:50 pm Hi all,

So much good content on this thread and I'm a 1st time poster but I'm curious how everyone is getting these no cost refinances. Is my current financial situation not as strong as I think? Wife and I are 35yrs old. 220K income. 350K liquid assets(checking/savings/brokerage). 20K in combined auto and student loans (3%). 790 credit score
25yrs left on Mortgage(3.75%), Loan amount=270K. Approximate House value=470K. State= PA

Current offers:
Local mortgage company that initiated home loan- 2.875% 30yr; 5900 in closing costs (not including pre-payments/escrow)

New American Funding- 2.875% 30yr; 3900 in closing costs (not including pre-payments/escrow)

LenderFi- 2.584%APR; 20yr; 4900 in closing costs including $1800 in points (not including pre-payments/escrow)

Better- 3.375% 30yrs; 1900 in closing costs(not including pre-payments/escrow)

I don't find any of these offers competitive at all compared to the stories shares here. I don't even think I'm looking for the perfect deal, just reasonable= 2.75-2.875% 20-30yr mortgage with <1500 in closing costs. Is this due to our personal financial situation? Living in PA? I feel like non of these offers are even worth pinning against each other considering how far away they are to my goal? Am I doing something wrong?
It is likely your state and loan amount. The higher the loan up to the conforming limits (or just over) make more money. Also, loans in HCOLA in California seem to be getting the very best rates so it is likely good for your state.

Just tell them what you want to close the deal... you never know.
I am having a similar feeling, I am in PA too. wife and I both are scored at 800+ And was looking for 115K refin loan for a primary residence. 60K in bank/cd etc and about 400K in taxable brokerage account + 401K etc (the majority in 401k)

Rate I got form ...
  • LanderFi 10 year fixed - api 2.75% about 4000 in points + closing cost (whaaaat!)
    Ally 15 year - api 2.62% about 1900 in points + closing cost
in my situation, the rate I am getting, I am not sure if the juice is worth the squeeze (given all cost associated with the refi)

my current loan is 15 yr fixed - at api 2.875 which was refi-ed in 2012. After reading the glowing rate people got here in this forum, I prompted to try to see if I get anything better but not sure how can I get a better rate. I am wondering--- Are there any tips on getting a good rate/ like 0 points or 0 costs or something similar?

Thanks for reading.
User avatar
BrandonBogle
Posts: 3648
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

modest_man wrote: Mon Jul 13, 2020 3:36 pm Quicken, Better, and LD both appear to balk at the notion of lender credits. LD quoted me $12K for a 265K loan at 2.75%, which appears ludicrous (at least Better was half that at 5300).

I wouldn't be surprised if they are turning away price shoppers due to the high influx of applications.
I am almost clear to close with a decent lender credit. Both loanDepot and Better have worked with me. Quicken left a message today saying "we approved your mortgage, call us ASAP." I sent them the competing loan estimate over 8 days ago.
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

BrandonBogle wrote: Mon Jul 13, 2020 7:02 pm
modest_man wrote: Mon Jul 13, 2020 3:36 pm Quicken, Better, and LD both appear to balk at the notion of lender credits. LD quoted me $12K for a 265K loan at 2.75%, which appears ludicrous (at least Better was half that at 5300).

I wouldn't be surprised if they are turning away price shoppers due to the high influx of applications.
I am almost clear to close with a decent lender credit. Both loanDepot and Better have worked with me. Quicken left a message today saying "we approved your mortgage, call us ASAP." I sent them the competing loan estimate over 8 days ago.
Was Quicken offering to match, or was it one of their robo calls?
Hoodwink
Posts: 15
Joined: Fri Jul 10, 2020 6:47 am

Re: Refinance Mega Thread

Post by Hoodwink »

Should I lock on a rate of 2.5% with 5K in lender fees for 510K loan amount? This is with lenderfi. If i go 2.625 then no lender fee and just closing cost.

Similar were the rates with another lender.
User avatar
anon_investor
Posts: 4571
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

Hoodwink wrote: Mon Jul 13, 2020 7:04 pm Should I lock on a rate of 2.5% with 5K in lender fees for 510K loan amount? This is with lenderfi. If i go 2.625 then no lender fee and just closing cost.

Similar were the rates with another lender.
I would go with the no cost at 2.65%.
User avatar
BrandonBogle
Posts: 3648
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

ChiKid24 wrote: Mon Jul 13, 2020 5:28 pm In the end it's your money, but my guess is others on this thread would balk at paying $10k in origination and fees on any refinancing today.
Absolutely! My rule is either no-cost, or at most, $1,200 (which is what 3rd party charges are for me).
ChiKid24 wrote: Mon Jul 13, 2020 5:35 pm
StevenNJ1 wrote: Mon Jul 13, 2020 5:22 pm Sorry, but I so disagree ... what is that extra $1,600 compared to the savings over 25 years??? I calculated that 1% at the end of the day gets me about 120k in savings over the life of a loan. I think it's all about the %, considering that one plans to stay in the house for a long time.
Your post suggested you were looking for opinions which I provided. If you truly think you'll stay in the house for 25 years then yes $1,600 cost looks good on paper. You would be an outlier though as the median years in home ownership is almost half that. What if rates continue to fall and you can refinance to 2.5% or 2.25% in 6 months? Then the $1,600 spent out of pocket cost is wasted money. I choose to do no cost so that I can continue to chase the falling rates with no money out of pocket.
For reference, go back about 15 or so pages in this very thread. I refinanced at 2.625% back in May and and almost ready to close on 2.25% now. Thank goodness for neither do I spend anything out of my pocket.
User avatar
BrandonBogle
Posts: 3648
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

anon_investor wrote: Mon Jul 13, 2020 7:03 pm
BrandonBogle wrote: Mon Jul 13, 2020 7:02 pm
modest_man wrote: Mon Jul 13, 2020 3:36 pm Quicken, Better, and LD both appear to balk at the notion of lender credits. LD quoted me $12K for a 265K loan at 2.75%, which appears ludicrous (at least Better was half that at 5300).

I wouldn't be surprised if they are turning away price shoppers due to the high influx of applications.
I am almost clear to close with a decent lender credit. Both loanDepot and Better have worked with me. Quicken left a message today saying "we approved your mortgage, call us ASAP." I sent them the competing loan estimate over 8 days ago.
Was Quicken offering to match, or was it one of their robo calls?
It was a person who left a voicemail. I didn't even bother calling back. The loan estimate I sent them is the 1st one before someone else beat it last week (and then Better matched that). If I sent them this new one, by the time they get back to me, I'd be at the closing table lol.
anon_investor wrote: Mon Jul 13, 2020 7:08 pm
Hoodwink wrote: Mon Jul 13, 2020 7:04 pm Should I lock on a rate of 2.5% with 5K in lender fees for 510K loan amount? This is with lenderfi. If i go 2.625 then no lender fee and just closing cost.

Similar were the rates with another lender.
I would go with the no cost at 2.65%.
I concur.
BarDownHockey
Posts: 88
Joined: Sat Jun 15, 2019 3:58 pm

Re: Refinance Mega Thread

Post by BarDownHockey »

ChiKid24 wrote: Mon Jul 13, 2020 3:59 pm As comparison, the loan estimate I got on Thursday, for a loan value of $718k at 2.75% had the following:

A. Origination Charge: $0
B. Services You Cannot Shop For: $201
C. Services You Can Shop For: $1,000
E. Taxes and Other Government Fees: $187
Lender Credit: -$1,388 (covers all of the above.
At $718k, is your loan under the conforming limit for your county? It would be great to know whether that quote is for a super conforming loan or a jumbo. I haven’t seen no cost jumbos anywhere. Not saying I don’t believe you, but rather that is love to know which lender And what state you’re in!
modest_man
Posts: 36
Joined: Tue May 07, 2013 10:37 am

Re: Refinance Mega Thread

Post by modest_man »

BrandonBogle wrote: Mon Jul 13, 2020 7:02 pm
modest_man wrote: Mon Jul 13, 2020 3:36 pm Quicken, Better, and LD both appear to balk at the notion of lender credits. LD quoted me $12K for a 265K loan at 2.75%, which appears ludicrous (at least Better was half that at 5300).

I wouldn't be surprised if they are turning away price shoppers due to the high influx of applications.
I am almost clear to close with a decent lender credit. Both loanDepot and Better have worked with me. Quicken left a message today saying "we approved your mortgage, call us ASAP." I sent them the competing loan estimate over 8 days ago.
Then I'm clearly doing something wrong. I spoke with quicken who flat out didn't even want me to send a competing loan estimate. Do I just need to wait and let them come to me? I owe 265K on a condo worth 400-450K with a credit score 800+.

To top that off, I had an absolutely atrocious experience with a loan officer at LoanDepot who flat out refused to send me a loan estimate with stipulated credits. Since there was no good reason for him to deny me a LE, I complained and am now dealing with an executive loan officer. He seemed proud to give me a verbal quote of $3400 for 30 year 2.75%, but I'm still waiting on the official LE.
Post Reply