Refinance Mega Thread

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Goal33
Posts: 1636
Joined: Sun Apr 12, 2015 12:30 pm

Re: Refinance Mega Thread

Post by Goal33 »

Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.

InvestDoc wrote: Tue Aug 25, 2020 10:34 pm
spbos wrote: Sun Aug 23, 2020 1:54 pm I am currently locked for a 30 year 2.5% confirming loan (my second refinancing). I submitted all my documents about two and a half weeks ago. I just checked, and they are saying that it may take them four more weeks for closing – about 7 weeks from application to closing.

The last refinance took me less than four weeks. I am a bit worried. The interest rates have gone up. Are they deliberately delaying to go beyond the rate lock (it expires on Sep 25) and will then ask me to close at a higher rate? Is it legal? Thanks.
I'm in the same situation as you but with a 2.625% rate. I applied first week or so of August and have a rate lock that ends on 9/25. They just told me I entered the processing phase 10 days after submitting all my documents, and told me they're now working on employment verification and title work. I have an appraisal waiver which will help the timing, but my rate lock expires on 9/25 and I'd be surprised if it closes before then based on what I was told when I applied as well as another acquaintance's experience with this lender.
My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
What was the rate? i thought rates were higher 60 days ago.
User avatar
truenyer
Posts: 197
Joined: Thu Oct 26, 2017 1:39 pm

Re: Refinance Mega Thread

Post by truenyer »

Goal33 wrote: Wed Aug 26, 2020 11:27 pm
Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.

InvestDoc wrote: Tue Aug 25, 2020 10:34 pm
spbos wrote: Sun Aug 23, 2020 1:54 pm I am currently locked for a 30 year 2.5% confirming loan (my second refinancing). I submitted all my documents about two and a half weeks ago. I just checked, and they are saying that it may take them four more weeks for closing – about 7 weeks from application to closing.

The last refinance took me less than four weeks. I am a bit worried. The interest rates have gone up. Are they deliberately delaying to go beyond the rate lock (it expires on Sep 25) and will then ask me to close at a higher rate? Is it legal? Thanks.
I'm in the same situation as you but with a 2.625% rate. I applied first week or so of August and have a rate lock that ends on 9/25. They just told me I entered the processing phase 10 days after submitting all my documents, and told me they're now working on employment verification and title work. I have an appraisal waiver which will help the timing, but my rate lock expires on 9/25 and I'd be surprised if it closes before then based on what I was told when I applied as well as another acquaintance's experience with this lender.
My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
What was the rate? i thought rates were higher 60 days ago.
I locked 45 days ago with Loan Depot at 2.625% 30 year with $2k net credit. I think rates were lower in the beginning of July compared to where they are now.
bgh11
Posts: 92
Joined: Wed Aug 05, 2020 4:58 am

Re: Refinance Mega Thread

Post by bgh11 »

Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.

InvestDoc wrote: Tue Aug 25, 2020 10:34 pm
spbos wrote: Sun Aug 23, 2020 1:54 pm I am currently locked for a 30 year 2.5% confirming loan (my second refinancing). I submitted all my documents about two and a half weeks ago. I just checked, and they are saying that it may take them four more weeks for closing – about 7 weeks from application to closing.

The last refinance took me less than four weeks. I am a bit worried. The interest rates have gone up. Are they deliberately delaying to go beyond the rate lock (it expires on Sep 25) and will then ask me to close at a higher rate? Is it legal? Thanks.
I'm in the same situation as you but with a 2.625% rate. I applied first week or so of August and have a rate lock that ends on 9/25. They just told me I entered the processing phase 10 days after submitting all my documents, and told me they're now working on employment verification and title work. I have an appraisal waiver which will help the timing, but my rate lock expires on 9/25 and I'd be surprised if it closes before then based on what I was told when I applied as well as another acquaintance's experience with this lender.
My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
Why are they not able to close in 60 days? Have u talked to the LO to see if it can be extended?
Monsterflockster
Posts: 564
Joined: Thu Nov 21, 2019 12:03 am

Re: Refinance Mega Thread

Post by Monsterflockster »

bgh11 wrote: Thu Aug 27, 2020 12:25 am
Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.

InvestDoc wrote: Tue Aug 25, 2020 10:34 pm
spbos wrote: Sun Aug 23, 2020 1:54 pm I am currently locked for a 30 year 2.5% confirming loan (my second refinancing). I submitted all my documents about two and a half weeks ago. I just checked, and they are saying that it may take them four more weeks for closing – about 7 weeks from application to closing.

The last refinance took me less than four weeks. I am a bit worried. The interest rates have gone up. Are they deliberately delaying to go beyond the rate lock (it expires on Sep 25) and will then ask me to close at a higher rate? Is it legal? Thanks.
I'm in the same situation as you but with a 2.625% rate. I applied first week or so of August and have a rate lock that ends on 9/25. They just told me I entered the processing phase 10 days after submitting all my documents, and told me they're now working on employment verification and title work. I have an appraisal waiver which will help the timing, but my rate lock expires on 9/25 and I'd be surprised if it closes before then based on what I was told when I applied as well as another acquaintance's experience with this lender.
My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
Why are they not able to close in 60 days? Have u talked to the LO to see if it can be extended?
It’s been a terrible experience. They sat on the application for 40+ days. Response to email & phone calls was spotty at best. Almost impossible to get ahold of the loan officer after the first call. It was one thing after another. Then the automsted break-up email. I’m fed up & moving on.
bgh11
Posts: 92
Joined: Wed Aug 05, 2020 4:58 am

Re: Refinance Mega Thread

Post by bgh11 »

Monsterflockster wrote: Thu Aug 27, 2020 12:55 am
bgh11 wrote: Thu Aug 27, 2020 12:25 am
Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.

InvestDoc wrote: Tue Aug 25, 2020 10:34 pm

I'm in the same situation as you but with a 2.625% rate. I applied first week or so of August and have a rate lock that ends on 9/25. They just told me I entered the processing phase 10 days after submitting all my documents, and told me they're now working on employment verification and title work. I have an appraisal waiver which will help the timing, but my rate lock expires on 9/25 and I'd be surprised if it closes before then based on what I was told when I applied as well as another acquaintance's experience with this lender.
My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
Why are they not able to close in 60 days? Have u talked to the LO to see if it can be extended?
It’s been a terrible experience. They sat on the application for 40+ days. Response to email & phone calls was spotty at best. Almost impossible to get ahold of the loan officer after the first call. It was one thing after another. Then the automsted break-up email. I’m fed up & moving on.
What’s the rate/term? Are you now locked with another lender? Good luck.
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

mtwoy wrote: Wed Aug 26, 2020 5:24 pm For those that did a refi with Better and got the appraisal refunded, how long did it take after funding to get your credit card refunded? It will be a week tomorrow since mine funded and I'm still waiting.
I just got my refund credited to my account the day before I closed.
JSDNJ
Posts: 275
Joined: Wed Feb 04, 2015 5:17 pm

Re: Refinance Mega Thread

Post by JSDNJ »

madrasfiltercoffee wrote: Wed Aug 26, 2020 8:51 pm
JSDNJ wrote: Wed Aug 26, 2020 3:48 pm
madrasfiltercoffee wrote: Wed Aug 26, 2020 2:12 pm Closed and funded with owning.com

2.5% 30 year fixed
no closing costs but points
A+B+C = $1500 (points)

They finished the whole thing in ~20 days. AMAZING service. I was told by other lenders that this was not possible and that this price is too good to be true, but it seems like it was one of those deals

Any lender credits or is the $1500 your total cost to get to 2.5?
Lender credits for closing costs, but the $1500 was points to go from 2.625 to 2.5
So what was your total cost to get to 2.5?

A/B/C/E minus credits
iridum
Posts: 21
Joined: Mon Apr 27, 2020 6:16 am

Re: Refinance Mega Thread

Post by iridum »

FiscallyResponsible wrote: Wed Aug 26, 2020 9:47 am
RMO87 wrote: Wed Aug 26, 2020 8:01 am I refinanced with Better, closed in mid-July. The $2,500 AMEX deal was used, as well, but have yet to receive it. Should I find it worthwhile to refinance AGAIN, is there anything keeping me for doing so right away? Do I have to wait so many months? Should I wait until I receive the AMEX credit?

Thanks in advance!
I closed w/Better end of July and received the AMEX credit a few weeks later. I am already on to the next refi (which I started before receiving AMEX credit). It is a risk, but I think contractually, they would have to give you the credit either way since you did meet the requirement.
Who are you doing the refi again with? What state?
BackOfTheNet
Posts: 248
Joined: Mon Nov 30, 2009 9:24 pm

Re: Refinance Mega Thread

Post by BackOfTheNet »

Finally closed yesterday. 2.5% 15 year, $6,800 lender credit. $380K loan on $575k value. Will make ~$4k after about ~$3k in actual fees. Pretty happy coming from a 3.250% 15. Can't say with who but found them on Zillow mortgage.
ossipago
Posts: 164
Joined: Wed Apr 21, 2010 4:31 pm

Re: Refinance Mega Thread

Post by ossipago »

I've searched and searched without luck. Does LenderFi require a hard pull just to see rates?
jjhk121
Posts: 47
Joined: Thu Jul 23, 2020 1:09 am

Re: Refinance Mega Thread

Post by jjhk121 »

ossipago wrote: Thu Aug 27, 2020 8:54 am I've searched and searched without luck. Does LenderFi require a hard pull just to see rates?
No, you can enter your loan amount and property information on their site and they will show you different options.

Once you actually apply with a hard pull a loan officer will give you better rate/lender credit options though.
m7a8a6
Posts: 19
Joined: Mon Aug 17, 2020 8:25 pm

Re: Refinance Mega Thread

Post by m7a8a6 »

ossipago wrote: Thu Aug 27, 2020 8:54 am I've searched and searched without luck. Does LenderFi require a hard pull just to see rates?
No hard pull to see rates...but they do ask decent amount of questions. After the rates are listed, you can begin an application process to get a LE (which happens to have better numbers than the listed rates).
User avatar
anon_investor
Posts: 5248
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

ossipago wrote: Thu Aug 27, 2020 8:54 am I've searched and searched without luck. Does LenderFi require a hard pull just to see rates?
To get actual accurate rates you will need to do a full app and hard pull. The website just gives you some general rates. At least for me, the offered rate after I applied (with hard pull) was 0.25% less than the rate showed on the website.
kmanjir
Posts: 31
Joined: Fri Mar 27, 2020 8:45 pm

Re: Refinance Mega Thread

Post by kmanjir »

How soon does one have to wait after the closing of a refinance to start the process for the next refinance?
I just closed my last refinance in mid-August and the loan is funded. Still awaiting the refund check from the original lender.

Do I need to wait for the refinance lender to show up on my credit report (that is, make at least one payment) before being able to start the process for a new refinance (and try for an even lower rate)?
User avatar
anon_investor
Posts: 5248
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

kmanjir wrote: Thu Aug 27, 2020 9:06 am How soon does one have to wait after the closing of a refinance to start the process for the next refinance?
I just closed my last refinance in mid-August and the loan is funded. Still awaiting the refund check from the original lender.

Do I need to wait for the refinance lender to show up on my credit report (that is, make at least one payment) before being able to start the process for a new refinance (and try for an even lower rate)?
From a practical standpoint, I think it is better to wait until you have at least the 1st statement available, because at least with the 2 refi's I did this year, they definitely asked to see the most recent mortgage statement. You probably could show them other items though.

Personally I waited about 6 weeks between my 2 refi's this year and had no issues closing on the second refi. During that intervening time between the 1st refi funding and applying for the 2nd refi: (1) my original loan showed up as closed on all 3 credit reports, (2) the new loan appeared on 2 of my credit reports, (3) I received a couple of statements for the 1st refi loan, and (4) I made 1 payment on the 1st refi loan.

I know that since my new loan was on at least a couple of my credit reports, when I did apply for my second refi and they did the hard credit pull, they were able to pre-populate information about my existing (the 1st refi).
User avatar
BrandonBogle
Posts: 3775
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

kmanjir wrote: Thu Aug 27, 2020 9:06 am How soon does one have to wait after the closing of a refinance to start the process for the next refinance?
I just closed my last refinance in mid-August and the loan is funded. Still awaiting the refund check from the original lender.

Do I need to wait for the refinance lender to show up on my credit report (that is, make at least one payment) before being able to start the process for a new refinance (and try for an even lower rate)?
You do realize that this same question was asked just one page ago? Did you see the answer to it being asked then?
FiscallyResponsible
Posts: 93
Joined: Mon Feb 22, 2016 9:02 pm

Re: Refinance Mega Thread

Post by FiscallyResponsible »

iridum wrote: Thu Aug 27, 2020 8:02 am
FiscallyResponsible wrote: Wed Aug 26, 2020 9:47 am
RMO87 wrote: Wed Aug 26, 2020 8:01 am I refinanced with Better, closed in mid-July. The $2,500 AMEX deal was used, as well, but have yet to receive it. Should I find it worthwhile to refinance AGAIN, is there anything keeping me for doing so right away? Do I have to wait so many months? Should I wait until I receive the AMEX credit?

Thanks in advance!
I closed w/Better end of July and received the AMEX credit a few weeks later. I am already on to the next refi (which I started before receiving AMEX credit). It is a risk, but I think contractually, they would have to give you the credit either way since you did meet the requirement.
Who are you doing the refi again with? What state?
Michigan, Loan Cabin.
MrJedi
Posts: 434
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

Does double interest between the start of prepaids and actual funding date get clawed back or is a day or 2 expected and the cost of doing business?

Example:
Funding date in disclosures of 8/25, 7 days of prepaid interest.
Actual funding and payoff date: 8/26, 1 day later.

So since the funding came a day later, it seems 8/25 was double paid, with extra going to the new lender (this is different than the old lender refunding extra between funding date and the estimated payoff date used).

For my low balance, this 1 day of double dip is insignificant to me, but I could see some higher balances making a significant impact, especially if it's multiple days later. What's the expected protocol here?
User avatar
BrandonBogle
Posts: 3775
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

MrJedi wrote: Thu Aug 27, 2020 10:04 am Does double interest between the start of prepaids and actual funding date get clawed back or is a day or 2 expected and the cost of doing business?

Example:
Funding date in disclosures of 8/25, 7 days of prepaid interest.
Actual funding and payoff date: 8/26, 1 day later.

So since the funding came a day later, it seems 8/25 was double paid, with extra going to the new lender (this is different than the old lender refunding extra between funding date and the estimated payoff date used).

For my low balance, this 1 day of double dip is insignificant to me, but I could see some higher balances making a significant impact, especially if it's multiple days later. What's the expected protocol here?
Keep in mind that funding and payoff date don’t have to be the same day. Many settlement agents will wait until the funding fully posts overnight before sending the payoff. So in many cases, funding is on 8/25 and payoff on 8/26. Is that what happened in your case? If funding actually was 8/26 (regardless of payoff date), then yes, you shouldn’t be charged interest on 8/25. Whether it’s worth pursuing that day’s interest is a different question entirely though.
MrJedi
Posts: 434
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

BrandonBogle wrote: Thu Aug 27, 2020 10:27 am
MrJedi wrote: Thu Aug 27, 2020 10:04 am Does double interest between the start of prepaids and actual funding date get clawed back or is a day or 2 expected and the cost of doing business?

Example:
Funding date in disclosures of 8/25, 7 days of prepaid interest.
Actual funding and payoff date: 8/26, 1 day later.

So since the funding came a day later, it seems 8/25 was double paid, with extra going to the new lender (this is different than the old lender refunding extra between funding date and the estimated payoff date used).

For my low balance, this 1 day of double dip is insignificant to me, but I could see some higher balances making a significant impact, especially if it's multiple days later. What's the expected protocol here?
Keep in mind that funding and payoff date don’t have to be the same day. Many settlement agents will wait until the funding fully posts overnight before sending the payoff. So in many cases, funding is on 8/25 and payoff on 8/26. Is that what happened in your case? If funding actually was 8/26 (regardless of payoff date), then yes, you shouldn’t be charged interest on 8/25. Whether it’s worth pursuing that day’s interest is a different question entirely though.
I received funding confirmation from new lender on 8/26, and the old lender shows payoff on 8/26. Estimated disbursement was 8/25 in the disclosures. I was wondering what you are saying to, if perhaps the funds came in later on 8/25 but the old lender didn't have as paid until 8/26.

For me it's not worth pursuing, but I was still curious since I'm sure there are instances where funding comes in more than a day late. And then combine that with a large loan balance, you could have cases of more than $100 in double paid interest. I assume you would have to request it back from the new lender in that case.
leviathan
Posts: 53
Joined: Tue Jul 09, 2019 3:03 pm

Re: Refinance Mega Thread

Post by leviathan »

MrJedi wrote: Thu Aug 27, 2020 10:46 am
BrandonBogle wrote: Thu Aug 27, 2020 10:27 am
MrJedi wrote: Thu Aug 27, 2020 10:04 am Does double interest between the start of prepaids and actual funding date get clawed back or is a day or 2 expected and the cost of doing business?

Example:
Funding date in disclosures of 8/25, 7 days of prepaid interest.
Actual funding and payoff date: 8/26, 1 day later.

So since the funding came a day later, it seems 8/25 was double paid, with extra going to the new lender (this is different than the old lender refunding extra between funding date and the estimated payoff date used).

For my low balance, this 1 day of double dip is insignificant to me, but I could see some higher balances making a significant impact, especially if it's multiple days later. What's the expected protocol here?
Keep in mind that funding and payoff date don’t have to be the same day. Many settlement agents will wait until the funding fully posts overnight before sending the payoff. So in many cases, funding is on 8/25 and payoff on 8/26. Is that what happened in your case? If funding actually was 8/26 (regardless of payoff date), then yes, you shouldn’t be charged interest on 8/25. Whether it’s worth pursuing that day’s interest is a different question entirely though.
I received funding confirmation from new lender on 8/26, and the old lender shows payoff on 8/26. Estimated disbursement was 8/25 in the disclosures. I was wondering what you are saying to, if perhaps the funds came in later on 8/25 but the old lender didn't have as paid until 8/26.

For me it's not worth pursuing, but I was still curious since I'm sure there are instances where funding comes in more than a day late. And then combine that with a large loan balance, you could have cases of more than $100 in double paid interest. I assume you would have to request it back from the new lender in that case.
In one of my recent refinances, the funding date was on Friday. Because the last-minute adjustments, the funding came late in the afternoon on Friday. The payoff was sent on next Monday. So there was 3-days of "double interest", which I cannot blame either lender or title company.
I have another funding day scheduled tomorrow (Friday). Let's see what happens.
kmanjir
Posts: 31
Joined: Fri Mar 27, 2020 8:45 pm

Re: Refinance Mega Thread

Post by kmanjir »

anon_investor wrote: Thu Aug 27, 2020 9:20 am
kmanjir wrote: Thu Aug 27, 2020 9:06 am How soon does one have to wait after the closing of a refinance to start the process for the next refinance?
I just closed my last refinance in mid-August and the loan is funded. Still awaiting the refund check from the original lender.

Do I need to wait for the refinance lender to show up on my credit report (that is, make at least one payment) before being able to start the process for a new refinance (and try for an even lower rate)?
From a practical standpoint, I think it is better to wait until you have at least the 1st statement available, because at least with the 2 refi's I did this year, they definitely asked to see the most recent mortgage statement. You probably could show them other items though.

Personally I waited about 6 weeks between my 2 refi's this year and had no issues closing on the second refi. During that intervening time between the 1st refi funding and applying for the 2nd refi: (1) my original loan showed up as closed on all 3 credit reports, (2) the new loan appeared on 2 of my credit reports, (3) I received a couple of statements for the 1st refi loan, and (4) I made 1 payment on the 1st refi loan.

I know that since my new loan was on at least a couple of my credit reports, when I did apply for my second refi and they did the hard credit pull, they were able to pre-populate information about my existing (the 1st refi).
Thanks, anon_investor, that's sound guidance. I'll follow the same steps, wait a few more weeks and verify that it's showing up on my credit reports before embarking on the next quest. :)

BrandonBogle wrote: Thu Aug 27, 2020 9:23 am You do realize that this same question was asked just one page ago? Did you see the answer to it being asked then?
Hi Brandon - Thanks for the pointer, I did glance at it yesterday, but I thought it was more related to the waiting for the Amex credit before starting the process again. With that said, this (mega)thread has been the exception in terms of trying to keep up with. I think I was quite well read up till Page 84, then I had to give up. :)

Thanks again to you and all the other folks here who have provided so much guidance and insight on this topic.
InvestDoc
Posts: 60
Joined: Sat Jan 13, 2018 12:54 am

Re: Refinance Mega Thread

Post by InvestDoc »

kmanjir wrote: Thu Aug 27, 2020 9:06 am How soon does one have to wait after the closing of a refinance to start the process for the next refinance?
I just closed my last refinance in mid-August and the loan is funded. Still awaiting the refund check from the original lender.

Do I need to wait for the refinance lender to show up on my credit report (that is, make at least one payment) before being able to start the process for a new refinance (and try for an even lower rate)?
I started the process about a month after my last refinance. My new loan hadn’t showed up on my credit report yet by the time I applied for the second refi.

My loan is now in the process of being sold and will be complete before I close on the new refinance, but I’m wondering if this will complicate the processing of my new loan. I sent them a statement from the existing lender and said I’d send them one from the new servicer as soon as possible.
jbell3124
Posts: 46
Joined: Tue Jul 16, 2013 10:53 pm

Re: Refinance Mega Thread

Post by jbell3124 »

I applied by the deadline for the AMEX credit and am currently locked with Better. Do I need to do anything else to ensure I get the credit? Will it come up or any papers be necessary through the refi process? At some point, they will need some AMEX account info from me? Just want to make sure I do what needs done (beyond applying by and closing by the required deadlines) to get the credit. I feel like I talked about it with my loan processor at the beginning but it’s been a while, and I’ve talked to a lot of people.
nic3456
Posts: 66
Joined: Fri Dec 19, 2008 10:42 am

Re: Refinance Mega Thread

Post by nic3456 »

Anyone receive quotes from LC recently? Their return emails still state they are working on apps from 7/31, but its been that way for a couple weeks now.
Shikoku
Posts: 406
Joined: Fri Oct 27, 2017 11:01 pm
Location: USA

Re: Refinance Mega Thread

Post by Shikoku »

I wonder if the fund always go through the escrow or settlement agent. Do the new lenders directly send fund to previous lenders? Following article has some explanation but not precisely what I am trying to figure out.
Mortgage Refinance: Closing Process Explained
https://thefinancebuff.com/mortgage-ref ... ocess.html
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
User avatar
Taj_Mahalo
Posts: 81
Joined: Tue Jul 24, 2018 3:47 pm

Re: Refinance Mega Thread

Post by Taj_Mahalo »

FYI Fannie dropped an updated announcement on the adverse market fee. Now applies to loans purchased on or after December 1, 2020. Here’s a link to the lender letter:
https://singlefamily.fanniemae.com/news ... inance-fee
User avatar
anon_investor
Posts: 5248
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

Taj_Mahalo wrote: Thu Aug 27, 2020 1:49 pm FYI Fannie dropped an updated announcement on the adverse market fee. Now applies to loans purchased on or after December 1, 2020. Here’s a link to the lender letter:
https://singlefamily.fanniemae.com/news ... inance-fee
Someone posted something about that before. The question now is whether lenders will lower rates in response, and for how long.
User avatar
Taj_Mahalo
Posts: 81
Joined: Tue Jul 24, 2018 3:47 pm

Re: Refinance Mega Thread

Post by Taj_Mahalo »

Thanks, Anon - sorry for the duplicate post. That’s the question. I’m locked with Better and intend to ask them how it will impact pricing. When I asked about the fee last week before locking I was told it was already “baked in” to their pricing.
FS51
Posts: 49
Joined: Thu Sep 11, 2014 11:15 am

Re: Refinance Mega Thread

Post by FS51 »

Quick question: I just received my pre closing disclosure and my prepaids and initial escrow amounts went up significantly. Am I right in assuming this all comes out in the wash as it's my escrow and prepaids that I have already funded or would be funding anyway? I don't mind paying the extra cash at closing assuming it's a wash. Also, I noticed an aggregate adjustment of negative $800+ in the initial escrow section. Not sure what this is referring to. Everything else looks the same except the payoff amount on my mortgage went up approximately $2k but it looks like that's the right payoff amount as I was just going off a mortgage statement when guessing the loan amount.

Thank you in advance. This thread has been incredibly helpful.
Shikoku
Posts: 406
Joined: Fri Oct 27, 2017 11:01 pm
Location: USA

Re: Refinance Mega Thread

Post by Shikoku »

anon_investor wrote: Thu Aug 27, 2020 2:00 pm
Taj_Mahalo wrote: Thu Aug 27, 2020 1:49 pm FYI Fannie dropped an updated announcement on the adverse market fee. Now applies to loans purchased on or after December 1, 2020. Here’s a link to the lender letter:
https://singlefamily.fanniemae.com/news ... inance-fee
Someone posted something about that before. The question now is whether lenders will lower rates in response, and for how long.
Based on the data posted at the Loan Cabin website, my cost has gone down by 0.35%, not 0.50%. I keep track of it at https://www.loancabin.com/rates/ but I know it is not a perfect reflection of the industry.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

Closed yesterday $0 out of pocket, borrowed just the principal and saving about $400 a month. Thank you to everyone that helped me out. I will be paying towards the principal when I get my escrow money (another tip I got from this site). I always have a years worth of mortgage saved so now I have more money when I deduct the $400 from the 12 months I have saved up. Maybe I will buy some TESLA stock when it splits or buy myself a gift who knows.
MrJedi
Posts: 434
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

FS51 wrote: Thu Aug 27, 2020 2:08 pm Quick question: I just received my pre closing disclosure and my prepaids and initial escrow amounts went up significantly. Am I right in assuming this all comes out in the wash as it's my escrow and prepaids that I have already funded or would be funding anyway? I don't mind paying the extra cash at closing assuming it's a wash. Also, I noticed an aggregate adjustment of negative $800+ in the initial escrow section. Not sure what this is referring to. Everything else looks the same except the payoff amount on my mortgage went up approximately $2k but it looks like that's the right payoff amount as I was just going off a mortgage statement when guessing the loan amount.

Thank you in advance. This thread has been incredibly helpful.
Prepaid interest and escrow are payments you make regardless of refinancing or not.

Prepaid interest is just based on when in the month the loan is expected to fund. You pay interest on the old lender until paid off, and then interest on the new lender for the rest of the month, then the normal monthly installments start after the following month. If you fund early in the month, you will have more prepaid interest, but you will also pay less interest to the old lender that month (and you are probably refinancing to a lower rate and prefer to pay the new rate vs. the old rate).

Escrow of course is your insurance and tax. The main thing that can happen here is that if you close right before a tax payment is due, the new lender will often ask you to prepay the upcoming tax due into closing. If have an existing escrow, you likely have some funds built up in there to pay the tax. Once the old loan is paid off, the leftover escrow money that was supposed to pay your tax will get refunded back to you, so that's a wash too.
User avatar
anon_investor
Posts: 5248
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

itsallaboutme wrote: Thu Aug 27, 2020 2:16 pm Closed yesterday $0 out of pocket, borrowed just the principal and saving about $400 a month. Thank you to everyone that helped me out. I will be paying towards the principal when I get my escrow money (another tip I got from this site). I always have a years worth of mortgage saved so now I have more money when I deduct the $400 from the 12 months I have saved up. Maybe I will buy some TESLA stock when it splits or buy myself a gift who knows.
Just put it in VTSAX and chill!
itsallaboutme
Posts: 112
Joined: Mon May 22, 2017 2:47 pm

Re: Refinance Mega Thread

Post by itsallaboutme »

anon_investor wrote: Thu Aug 27, 2020 2:53 pm
itsallaboutme wrote: Thu Aug 27, 2020 2:16 pm Closed yesterday $0 out of pocket, borrowed just the principal and saving about $400 a month. Thank you to everyone that helped me out. I will be paying towards the principal when I get my escrow money (another tip I got from this site). I always have a years worth of mortgage saved so now I have more money when I deduct the $400 from the 12 months I have saved up. Maybe I will buy some TESLA stock when it splits or buy myself a gift who knows.
Just put it in VTSAX and chill!
I already invest in that. Totally forgot about that. I will invest more into it. Thanks
FS51
Posts: 49
Joined: Thu Sep 11, 2014 11:15 am

Re: Refinance Mega Thread

Post by FS51 »

MrJedi wrote: Thu Aug 27, 2020 2:26 pm
FS51 wrote: Thu Aug 27, 2020 2:08 pm Quick question: I just received my pre closing disclosure and my prepaids and initial escrow amounts went up significantly. Am I right in assuming this all comes out in the wash as it's my escrow and prepaids that I have already funded or would be funding anyway? I don't mind paying the extra cash at closing assuming it's a wash. Also, I noticed an aggregate adjustment of negative $800+ in the initial escrow section. Not sure what this is referring to. Everything else looks the same except the payoff amount on my mortgage went up approximately $2k but it looks like that's the right payoff amount as I was just going off a mortgage statement when guessing the loan amount.

Thank you in advance. This thread has been incredibly helpful.
Prepaid interest and escrow are payments you make regardless of refinancing or not.

Prepaid interest is just based on when in the month the loan is expected to fund. You pay interest on the old lender until paid off, and then interest on the new lender for the rest of the month, then the normal monthly installments start after the following month. If you fund early in the month, you will have more prepaid interest, but you will also pay less interest to the old lender that month (and you are probably refinancing to a lower rate and prefer to pay the new rate vs. the old rate).

Escrow of course is your insurance and tax. The main thing that can happen here is that if you close right before a tax payment is due, the new lender will often ask you to prepay the upcoming tax due into closing. If have an existing escrow, you likely have some funds built up in there to pay the tax. Once the old loan is paid off, the leftover escrow money that was supposed to pay your tax will get refunded back to you, so that's a wash too.
Thank you! This is exactly what happened. They added a 3 month tax bill to my prepaids as well as prepaid interest of 9/8-10/1. Should the 3mo taxes have been added to my initial escrow as opposed to my prepaids? This tax bill is going to be paid by my old lender out of my escrow on 9/1.
jco
Posts: 255
Joined: Sat Jan 25, 2020 8:53 am

Re: Refinance Mega Thread

Post by jco »

I'm wondering how long it's taking you all to get your rate locks once you apply? I'd like to lock a new rate in about 2 weeks (I couldn't refinance for a certain period of time based on a previous refinance) and I'm wondering how far before that I should apply.
User avatar
anon_investor
Posts: 5248
Joined: Mon Jun 03, 2019 1:43 pm

Re: Refinance Mega Thread

Post by anon_investor »

jco wrote: Thu Aug 27, 2020 3:05 pm I'm wondering how long it's taking you all to get your rate locks once you apply? I'd like to lock a new rate in about 2 weeks (I couldn't refinance for a certain period of time based on a previous refinance) and I'm wondering how far before that I should apply.
Not sure the timing now, but I applied with LenderFi in July and was able to lock the next day.
Familyman2012
Posts: 145
Joined: Wed Jun 03, 2020 3:36 pm

Re: Refinance Mega Thread

Post by Familyman2012 »

anon_investor wrote: Thu Aug 27, 2020 3:20 pm
jco wrote: Thu Aug 27, 2020 3:05 pm I'm wondering how long it's taking you all to get your rate locks once you apply? I'd like to lock a new rate in about 2 weeks (I couldn't refinance for a certain period of time based on a previous refinance) and I'm wondering how far before that I should apply.
Not sure the timing now, but I applied with LenderFi in July and was able to lock the next day.
Do you know if you can lock rate with 2 different lender?
I’m sure this question has been asked. So sorry for asking again.

I locked with one lender. But another lender that I applied too several weeks ago got back to me today and is sending over a loan estimate tonight. Was curious if I can lock with both until I make a decision.

Thanks
Artman910
Posts: 11
Joined: Sat Aug 22, 2020 5:43 pm

Re: Refinance Mega Thread

Post by Artman910 »

BarDownHockey wrote: Wed Aug 26, 2020 7:55 pm
Artman910 wrote: Wed Aug 26, 2020 7:16 pm Man what a forum. gotta hand it to you guys this has been a game changer.

Current loan

% 4.375
$ 523.5K (507.5K left) I had originally 4.875 549K refi 1 year ago.

offers:

Lender A) 2.875 30 Yr fixed 508K cost of $3,331 migh waive appraisal
Lender B) 2.875 30 Yr fixed 508K cost of $2343 waived appraisal as not needed
Lender B) 3.00 30 Yr fixed 508K Zero Cost (Lender credit of 2500)

Lender C) LoanCabin applied no response yet but roughly 2.625 30 yr Fixed cost was relatively low no points i think it was zero cost
Lender D) LenderFI applied no response yet but had potential offers of a 2.875 with 0 cost and a 2.5 for 2367 and 2.632 for 10 credit but on details shows 1881 fees

wife and I income wise are together near 110-120K relatively no debt other then house and a 3K student debt and 9k on a car loan. thats all we have.

and both of our avg credit scores are 740s pretty much even.

if i dont hear back form loan cabin or lenderfi or Lender A (i asked for no cost options but looks like i got ghosted lol)

what do yall think stay with lender B 2.875? (i do plan on staying here for a good 10 years minimum)
Go with Lender B at 3%. Do the refi for no cost. If rates continue to drop, then you can refi again without having wasted money paying a half point to drop the interest rate to 2.875%

ok so LenderFI came back with:

A: $0
B: $217
C: 975
D: (ABC) 1192
E: 180
F: 219
G: 6247 home ins for 13 months and property tax for 9 months
I: (EFGH) 6646
J is 7838 - 1372 (LE credit)
total i need to pay is 6193

so the taxes are a wash pretty much so i think for

a 30 yr fixed 2.625 for 508K is pretty good and i think this is a zero cost as the escrow does not count.

EDIT:

So I just signed to lock my deal with lenderfi 2.625 30yr Zero Cost

I guess the next courteous thing would be to tell the other lender that I will not be going with them (as during our conversation i mentioned that my wife had "herd" of better deals such as zero cost 2.625 and he was like yea but you know we provide better service over all etc) and only droped the 2.875 for 30 yr to 2343 and offered the 3% for zero cost... but man LenderFi totally beat them.

Gotta give a huge thank you to everyone on here!!!!
Last edited by Artman910 on Thu Aug 27, 2020 5:21 pm, edited 1 time in total.
User avatar
BrandonBogle
Posts: 3775
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

kmanjir wrote: Thu Aug 27, 2020 11:04 am
BrandonBogle wrote: Thu Aug 27, 2020 9:23 am You do realize that this same question was asked just one page ago? Did you see the answer to it being asked then?
Hi Brandon - Thanks for the pointer, I did glance at it yesterday, but I thought it was more related to the waiting for the Amex credit before starting the process again. With that said, this (mega)thread has been the exception in terms of trying to keep up with. I think I was quite well read up till Page 84, then I had to give up. :)

Thanks again to you and all the other folks here who have provided so much guidance and insight on this topic.
Thank you. I hope I wasn't too snarky. I do appreciate you read so many pages. I recall when I first came to this thread having to read all the pages and realize its an onerous task. I'm glad you got it figured out! :beer

For reference, in my current refi, I did the initial application before my then-current refi was preparing to close. However, I didn't give an "intent to proceed" until 48 hours after funding. For documentation, they accepted my prior closing disclosures just fine.
User avatar
BrandonBogle
Posts: 3775
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

FS51 wrote: Thu Aug 27, 2020 3:04 pm Thank you! This is exactly what happened. They added a 3 month tax bill to my prepaids as well as prepaid interest of 9/8-10/1. Should the 3mo taxes have been added to my initial escrow as opposed to my prepaids? This tax bill is going to be paid by my old lender out of my escrow on 9/1.
Section F is handled by the settlement agent. Section G is handling by your lender (or whomever they contract out for it). Upcoming tax bills, even if you do not have an escrow account, are generally noted in Section F and paid by the settlement agent at the appropriate time to the taxing authority.

The reason for this is that it can take some time for the lender payments and servicing to get set up, especially if the loan is quickly sold to another entity. Thus, it would be too easy for the tax payment to get lost in the shuffle. Thus, the settlement agent that already collects and manages all the necessary funds to the various entities basically has a task to pay one more entity. This avoids losing track of things (assuming the settlement agent does their job correctly).
Hoosier CPA
Posts: 114
Joined: Tue Nov 22, 2016 9:43 pm

Re: Refinance Mega Thread

Post by Hoosier CPA »

jbell3124 wrote: Thu Aug 27, 2020 1:17 pm I applied by the deadline for the AMEX credit and am currently locked with Better. Do I need to do anything else to ensure I get the credit? Will it come up or any papers be necessary through the refi process? At some point, they will need some AMEX account info from me? Just want to make sure I do what needs done (beyond applying by and closing by the required deadlines) to get the credit. I feel like I talked about it with my loan processor at the beginning but it’s been a while, and I’ve talked to a lot of people.
At one point one of the tasks was to input the last 5 digits of the amex card. I'm getting close to the finish line with them. It's been a major headache, involving several changing term sheets, but in the end I'll have about $800 coming back (lender credits are greater than loan fees) and the $2,500 credit. I refi'd with my local/existing lender in July at 3.0% for 20 years. I'm getting 2.875% for 30 with Better, but it's been a frustrating process to say the least. I keep thinking about pulling the plug on it but $3,300 is $3,300.
spbos
Posts: 19
Joined: Fri Jul 31, 2020 8:56 pm

Re: Refinance Mega Thread

Post by spbos »

[/quote]

Do you know if you can lock rate with 2 different lender?
I’m sure this question has been asked. So sorry for asking again.

I locked with one lender. But another lender that I applied too several weeks ago got back to me today and is sending over a loan estimate tonight. Was curious if I can lock with both until I make a decision.

Thanks
[/quote]

Yes, you can.
raixx017
Posts: 71
Joined: Wed Feb 28, 2018 5:41 pm

Re: Refinance Mega Thread

Post by raixx017 »

Familyman2012 wrote: Thu Aug 27, 2020 3:38 pm
Do you know if you can lock rate with 2 different lender?
I’m sure this question has been asked. So sorry for asking again.

I locked with one lender. But another lender that I applied too several weeks ago got back to me today and is sending over a loan estimate tonight. Was curious if I can lock with both until I make a decision.

Thanks
I believe the answer is yes. I did it. Many a times, a lender won't match a competing LE, if it is not locked (assuming, theirs is). Other times, you won't get a LE unless you're locked in (happened to me with one mortgage broker)
Last edited by raixx017 on Thu Aug 27, 2020 6:45 pm, edited 1 time in total.
exarkun
Posts: 34
Joined: Fri May 19, 2017 12:19 pm

Re: Refinance Mega Thread

Post by exarkun »

anon_investor wrote: Thu Aug 27, 2020 2:00 pm
Taj_Mahalo wrote: Thu Aug 27, 2020 1:49 pm FYI Fannie dropped an updated announcement on the adverse market fee. Now applies to loans purchased on or after December 1, 2020. Here’s a link to the lender letter:
https://singlefamily.fanniemae.com/news ... inance-fee
Someone posted something about that before. The question now is whether lenders will lower rates in response, and for how long.
They did drop a bit the day after the announcement of the revised date.
http://www.mortgagenewsdaily.com/mortga ... daily.aspx
joelly
Posts: 291
Joined: Mon Oct 27, 2008 11:22 am

Re: Refinance Mega Thread

Post by joelly »

Wow :sharebeer

Lender Fi. 2.75%. No cost.

Oh.My.Gosh. :beer

Thank you so much for giving me the link!
somatikos
Posts: 2
Joined: Sat Aug 08, 2020 1:48 pm

Re: Refinance Mega Thread

Post by somatikos »

Question -- is there a 6 month waiting period on a limited cash out refi or does that only apply on a full on cash out refi?
Monsterflockster
Posts: 564
Joined: Thu Nov 21, 2019 12:03 am

Re: Refinance Mega Thread

Post by Monsterflockster »

bgh11 wrote: Thu Aug 27, 2020 2:30 am
Monsterflockster wrote: Thu Aug 27, 2020 12:55 am
bgh11 wrote: Thu Aug 27, 2020 12:25 am
Monsterflockster wrote: Wed Aug 26, 2020 10:26 pm
jm1495 wrote: Wed Aug 26, 2020 7:05 am Ask your lender what happens if they don't close in time. Ask them to extend the rate lock for free, especially if their backlog is the reason for the delay. I am in this exact same situation and my lender will extend the lock for me for free if it comes to that.


My locked rate with Loan Depot expired after 60 days and I got an automated email telling me they are no longer able to fund the loan at that rate. 😐
Why are they not able to close in 60 days? Have u talked to the LO to see if it can be extended?
It’s been a terrible experience. They sat on the application for 40+ days. Response to email & phone calls was spotty at best. Almost impossible to get ahold of the loan officer after the first call. It was one thing after another. Then the automsted break-up email. I’m fed up & moving on.
What’s the rate/term? Are you now locked with another lender? Good luck.
It was a 30 year loan at 2.625% but came with a $1800 “fee” for no escrow. I am now locked with Lenderfi at 2.875%, no cost. Hopefully this one goes better.
User avatar
BrandonBogle
Posts: 3775
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

Hoosier CPA wrote: Thu Aug 27, 2020 4:19 pm
jbell3124 wrote: Thu Aug 27, 2020 1:17 pm I applied by the deadline for the AMEX credit and am currently locked with Better. Do I need to do anything else to ensure I get the credit? Will it come up or any papers be necessary through the refi process? At some point, they will need some AMEX account info from me? Just want to make sure I do what needs done (beyond applying by and closing by the required deadlines) to get the credit. I feel like I talked about it with my loan processor at the beginning but it’s been a while, and I’ve talked to a lot of people.
At one point one of the tasks was to input the last 5 digits of the amex card. I'm getting close to the finish line with them. It's been a major headache, involving several changing term sheets, but in the end I'll have about $800 coming back (lender credits are greater than loan fees) and the $2,500 credit. I refi'd with my local/existing lender in July at 3.0% for 20 years. I'm getting 2.875% for 30 with Better, but it's been a frustrating process to say the least. I keep thinking about pulling the plug on it but $3,300 is $3,300.
Do you have some brief points about what issues you've run into? Perhaps other direct lenders may give others here similar issues and the feedback can help. I've been fortunate that all three of my refis with Better were relatively smooth. But I'm an ideal borrower with a high credit score, documented W2 income and assets, no second liens, and understanding of the process to monitor and reach out when along the way so things nudge along, etc. At least with Better, if folks don't meet a certain desired mold, it sounds like they difficult to work with.

Note, I should add that at least with Better, you really need to be on things yourself to make sure things flow smoothly. Yesterday, I noticed that when one of my numbers was updated, somehow it said Cash Out = $XYZ, which was the size of the loan I'm paying off. I didn't think anything of it at first, but overnight, suddenly my pricing changed and I went from lender credits to paying points. I called and spoke to the person today and asked if this field means somehow my file got mixed up and considered a cash-out refi. Sure enough, that was the case. Somehow my mortgage balance was $0 and the "cash out" was my payoff. That got corrected while on the phone. This, however, was likely because I did a back-to-back refi and they initially wanted the mortgage statement that my prior refi paid off. It is likely whomever cleared out the old mortgage, first switched the stuff to the new mortgage and then zeroed out the balance vs. the other way around. However, if one didn't know how to "read into" their website, it would be easy to freak out and go around in circles until things get fixed. For me, it ended up being an email this morning and a phone call this afternoon, so maybe 15 minutes total.
somatikos wrote: Thu Aug 27, 2020 5:55 pm Question -- is there a 6 month waiting period on a limited cash out refi or does that only apply on a full on cash out refi?
A "limited cash out refi" is, for all intents and purposes, considered a rate-and-term refi. It basically is a straight refi + some of the closing costs financed and up to $2k in cash to the borrower. If you then go and refinance that again, it is NOT considered a cash-out refi.
Post Reply