Refinance Mega Thread

[Familyman2012]

Dilemma here.

Originally LC gave me a quote 2.65 20 years $3900 Lender credit.
Better match by $4000 Lender credit.

LC came back and match today. Looking at the better estimate. If I can get the appraisal waived which better did on my 1st refi. Better LE will adjust and be better than LC by $500.

Would you go with better or LC?
I’m thinking go with better because it’s more money in my pocket($500 more)

Or do you think I will burn bridges with LC since they usually give the best rates. Better initial LE was trash. Don’t want to burn bridges with them if i refi again later this year or next.
What would you do?
Thanks

[JBTX]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

[sapphire96]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

I am refinancing through Loan Depot. Very positive experience so far and their 15 year rates are very competitive to the market. Expecting to close within the next few weeks.

[JBTX]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

I am refinancing through Loan Depot. Very positive experience so far and their 15 year rates are very competitive to the market. Expecting to close within the next few weeks.

[jackson313]

Hi all,

LF offered 2.5% on a 30 fixed with just escrow at signing (~$3k). Lender credit is $2,305. When I reminded them I want a 25 year (which is what we're on now), all they adjusted was the term (but rate stayed at 2.5%). Two quick questions for you going through this recently:

• should the rate come down a bit on the shorter term, all else being equal (or not necessarily?

• would you generally recommend them to revise the payoff amount to the current existing loan balance (vs. the +$2.5k they look to be including on the disclosure?

Thanks for any input!

[nic3456]

Hi all,

LF offered 2.5% on a 30 fixed with just escrow at signing (~$3k). Lender credit is $2,305. When I reminded them I want a 25 year (which is what we're on now), all they adjusted was the term (but rate stayed at 2.5%). Two quick questions for you going through this recently:

• should the rate come down a bit on the shorter term, all else being equal (or not necessarily?

• would you generally recommend them to revise the payoff amount to the current existing loan balance (vs. the +$2.5k they look to be including on the disclosure?

Thanks for any input!

I haven't seen tons of quotes for 25yr, but almost all of them have had the 25yr at the same or worst rates than the 30yr (as well as fees). I think there just isn't as much competition for the 25yr? Have seen a similar thing with 10yr vs 15yr mortgages too.

[Shikoku]

Who will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.

We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.

On paper it was Better Settlement Services but the work was done by Westcor. On paper saying that it is Better Settlement Services but outsourcing the work to Westcor is a lie in my opinion. For heaven's sake please do not use them.

Is it possible that BSS did provide the settlement service but outsourced the title insurance piece to Westcor? BSS is not an insurance company, so they would have to outsource title insurance to someone else. I think most/all title insurance companies provide settlement services, but there are settlement companies that do not do title insurance.

Two columns on my CD shows:

Code: Select all

Credit Report                    to Corelogic Credco                   
Flood Certification              to Corelogic Flood Services        
Title - Lender's Title Insurance to Better Settlement Services, LLC 
Title - Settlement Fee           to Better Settlement Services, LLC  

The title work and settlement services were done by Westcor as far as I can see. The e-mail address of the settlement service provider was also Westcor e-mail.

[ossipago]

Hi all,

LF offered 2.5% on a 30 fixed with just escrow at signing (~$3k). Lender credit is $2,305. When I reminded them I want a 25 year (which is what we're on now), all they adjusted was the term (but rate stayed at 2.5%). Two quick questions for you going through this recently:

• should the rate come down a bit on the shorter term, all else being equal (or not necessarily?

• would you generally recommend them to revise the payoff amount to the current existing loan balance (vs. the +$2.5k they look to be including on the disclosure?

Thanks for any input!

I asked a question related to this a few pages back. Consensus is that, if rates are identical, there is no benefit to taking a 25-year over a 30-year. If you want, you can pay down the mortgage as if it's a 25-year using an amortization calculator, but you can't do the reverse. That assumes you have the financial discipline (but you are on this site, so I assume that's not an issue).

[Goal33]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

[GoodOmens]

Hi all,

LF offered 2.5% on a 30 fixed with just escrow at signing (~$3k). Lender credit is $2,305. When I reminded them I want a 25 year (which is what we're on now), all they adjusted was the term (but rate stayed at 2.5%). Two quick questions for you going through this recently:

• should the rate come down a bit on the shorter term, all else being equal (or not necessarily?

• would you generally recommend them to revise the payoff amount to the current existing loan balance (vs. the +$2.5k they look to be including on the disclosure?

Thanks for any input!

I've never seen much if any difference in 25-year and 30-year rates. If terms are the same, I'd do a 30 year and just pay at the 25-year rate. If they aren't paying you to do the 25-year then there really is no point.

For point 2 my last two refinances I had my new loan be my existing balance - 1 payment since I've always missed a payment due to the closing timeline (e.g., loan funds towards the end of the month your first payment to the next lender wouldn't be till the 1st of the following month, thus you have a month of no payments). I paid more at closing but I also didn't have a loan payment for that month. I'm sure the true boglehead wouldn't do that (especially at these dirt cheap rates and would take that extra payment and put it in the market), but I hate being in debt.

[jackson313]

Makes sense. Will be going with the 30 and paying the 25 year rate in that case. Love this thread - thank you!

[ZMonet]

I could really use some help with my Watermark loan: 2.25% interest rate for 10 years.

My current lender is showing a payoff amount of $233k.
My loan amount with Watermark is for $235k.

A+B+C+E = $2700
Lender Credits = $2900

What I am confused about is the amount that I need to bring to closing, which is $13k -- $6k for 12 months of homeowner's insurance, 6 months of property taxes, and a small amount of prepaid interest ($300) PLUS another $7k for 3 months of homeowner's insurance and 12 months of property taxes (so a total of 15 months homeowner's insurance and 18 months of property taxes!).

MY QUESTIONS:
[1] Is it standard to ask for prepaid of 6 months property tax and 12 months insurance as well as initial escrow of 3 months home owner's insurance and property taxes of 12 months?
[2] My old lender just paid my home owner's insurance for the year on 8/24, so why is Watermark asking for another 12 months?
[3] Should I be concerned about the difference in the payoff amount ($233k) and the loan amount ($235k)?
[4] If my loan rate is 2.25% and A+B+C+E <$0, why is my APR 2.46%?

Or should I not stress too much about F & G as long as A+B+C+E - lender credits < $0 since I'll get the money back anyway? Bringing $13k to the closing table is doable, although it will take a little movement of funds.

Any input much appreciated.

[jco]

Radian title is not taking inquiries from consumers. How are you getting quotes for title insurance from them?

On the phone, I was told I could go to radian.com, but that seems to be for lenders.

Also, they may not be licensed in my state (Colorado) from their website, but they couldn't confirm that over the phone.

[NORDO]

Radian title is not taking inquiries from consumers. How are you getting quotes for title insurance from them?

On the phone, I was told I could go to radian.com, but that seems to be for lenders.

Also, they may not be licensed in my state (Colorado) from their website, but they couldn't confirm that over the phone.

Email your LE to clientrelations@radian.com and ask for a quote. They responded to me within an hour.

[presto987]

I just closed on my first refinance (rate-and-term) with Better. It will be funding on Friday. How quickly can I refi again? Theoretically, can I lock with LC next week and look to close in 60 days?

Also, has anyone been able to figure out if there are reissue title discounts in California? Also would appreciate if anyone has found good, inexpensive title companies for CA besides Radian.

[jco]

Radian title is not taking inquiries from consumers. How are you getting quotes for title insurance from them?

On the phone, I was told I could go to radian.com, but that seems to be for lenders.

Also, they may not be licensed in my state (Colorado) from their website, but they couldn't confirm that over the phone.

Email your LE to clientrelations@radian.com and ask for a quote. They responded to me within an hour.

Excellent, thank you.

[FS51]

Has anyone worked with Silk title company through lenderfi? They are seemingly in the process of dropping the ball on my close tomorrow.

[gazelle1991]

I did a cashout refinance in early August. People said I would have to wait 6 months before I am able to do a rate-and-term. However, when I chat with LenderFi, they said no problem, I can do a rate-and-term on their end without waiting so I got the payoff statement, locked in the rate at 2.75% 30 year no cost closing (lender credit covers everything except escrow).

Too good to be true? Now just waiting for closing. Hopefully, this goes off smoothly.

[Johny]

I did a cashout refinance in early August. People said I would have to wait 6 months before I am able to do a rate-and-term. However, when I chat with LenderFi, they said no problem, I can do a rate-and-term on their end without waiting so I got the payoff statement, locked in the rate at 2.75% 30 year no cost closing (lender credit covers everything except escrow).

Too good to be true? Now just waiting for closing. Hopefully, this goes off smoothly.

Hmmm I spoke to a LO at Lenderfi who said I shouldn't refi rate and term after my cash out refi for 180 days. Made me feel a little bad so I won't do it. Lol

[Xrayman69]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

I am refinancing through Loan Depot. Very positive experience so far and their 15 year rates are very competitive to the market. Expecting to close within the next few weeks.

Sapphire96,

When did you start your process?

I’m also working with LD and started around August 10. No word or communication following the first week.

Thanks

[batpot]

Have a quote for 2.375% 30 year but with closing costs at 0.9% of the loan.

Currently sitting at 2.75%...about a 4 year break even.

Pretty much know rates can't go any lower, right?

[batpot]

Has anyone worked with Silk title company through lenderfi? They are seemingly in the process of dropping the ball on my close tomorrow.

They are who Whyndam Capital used.
A little mixup with the time of arrival to sign the closing docs, but he was early, not late.

[runner23]

Refi’d in March down to 3.125 30 year and waited 6 months per terms of refinance until I could again. Locked a no cost refi at 2.625 for 30 year today.

[proeddie]

I just closed on my first refinance (rate-and-term) with Better. It will be funding on Friday. How quickly can I refi again? Theoretically, can I lock with LC next week and look to close in 60 days?

Also, has anyone been able to figure out if there are reissue title discounts in California? Also would appreciate if anyone has found good, inexpensive title companies for CA besides Radian.

I'm in California and my loan from Better is funding today. We got a quote from Ticor Title and was able to get better to give us a credit of $702 for the difference!

[BrandonBogle]

I did a cashout refinance in early August. People said I would have to wait 6 months before I am able to do a rate-and-term. However, when I chat with LenderFi, they said no problem, I can do a rate-and-term on their end without waiting so I got the payoff statement, locked in the rate at 2.75% 30 year no cost closing (lender credit covers everything except escrow).

Too good to be true? Now just waiting for closing. Hopefully, this goes off smoothly.

I truly mean this - not being facetious... Good luck during the title search and underwriting. Somehow, there is some miscommunication as Fannie Mae likely won’t buy the loan from them with it set up as a rate-and-term refi. But I honestly wish you the best and hope it squeaks through.

[Brain]

In reply to some folks asking about the Better/Amex deal:

I applied to Better prior to having an Amex card. I applied for the Cash Magnet card (1.5% universal cask back) subsequently. I mentioned this to the processor and she just asked me to send her the card number once I got it.

Better asked me about all the other credit pulls on my report, whether they were for mortgage shopping, but didn't ask about the Amex pull.

Upon reading about the "link" from Amex to apply, I visited it and clicked it, but it simply said my request was submitted, nothing terribly informative.

A couple of days after closing, I got the same email multiple people have mentioned, "Congratulations on funding your loan, Brain! You can expect your American Express® statement credit to be applied to your account within 8-12 weeks."

I've checked the Better site daily since closing and today there was the task others have mentioned, asking me to input the last five digits of my card number.

I did happen to use the same email address for both Better and Amex, but I only really use the one email account, so that wasn't hard to coordinate.

Since I just got the card, I've only racked up a couple of hundred dollars on it. Since it's "only" 1.5% cash back, I'm only using it where better cash back bonuses wouldn't apply.

I'm pleased to hear reports that the credit will be applied even to low-balance cards.

I'll comment again when I see the credit.

For everyone who's been waiting with baited breath, today is the day! I just checked Quicken and a line item of "BETTER MORTGAGE CREDIT" for $2,500 just showed up on my Amex card.

I only had a balance of $256.57, so now I have a surplus of $2,243.43! I thought I remember seeing someone say something about being able to cash out the credit on a low-balance card. Anyone know the mechanics of that?

For posterity:

The timeline:

June 16: locked with Better
June 23: cleared to close
July 8: closing
Sept 2: get Amex credit (exactly 8 weeks)

I just looked at my Amex account and it's saying the credit posted on Aug. 17. But Quicken has loaded events that happened after that. Odd.

[ZMonet]

I could really use some help with my Watermark loan: 2.25% interest rate for 10 years.

My current lender is showing a payoff amount of $233k.
My loan amount with Watermark is for $235k.

A+B+C+E = $2700
Lender Credits = $2900

What I am confused about is the amount that I need to bring to closing, which is $13k -- $6k for 12 months of homeowner's insurance, 6 months of property taxes, and a small amount of prepaid interest ($300) PLUS another $7k for 3 months of homeowner's insurance and 12 months of property taxes (so a total of 15 months homeowner's insurance and 18 months of property taxes!).

MY QUESTIONS:
[1] Is it standard to ask for prepaid of 6 months property tax and 12 months insurance as well as initial escrow of 3 months home owner's insurance and property taxes of 12 months?
[2] My old lender just paid my home owner's insurance for the year on 8/24, so why is Watermark asking for another 12 months?
[3] Should I be concerned about the difference in the payoff amount ($233k) and the loan amount ($235k)?
[4] If my loan rate is 2.25% and A+B+C+E <$0, why is my APR 2.46%?

Or should I not stress too much about F & G as long as A+B+C+E - lender credits < $0 since I'll get the money back anyway? Bringing $13k to the closing table is doable, although it will take a little movement of funds.

Any input much appreciated.

I did a little more digging and it looks like my property taxes are due in two installments, one basically right now and one in December. It seems like Watermark is asking for those upfront even though before closing my current lender will likely pay the first installment. Also, as I mentioned, my current lender already paid the homeowner's insurance for the year.

Should I not focus on those issues and just know that it will sort out in the end? Any thoughts on my other questions?

[gazelle1991]

I did a cashout refinance in early August. People said I would have to wait 6 months before I am able to do a rate-and-term. However, when I chat with LenderFi, they said no problem, I can do a rate-and-term on their end without waiting so I got the payoff statement, locked in the rate at 2.75% 30 year no cost closing (lender credit covers everything except escrow).

Too good to be true? Now just waiting for closing. Hopefully, this goes off smoothly.

I truly mean this - not being facetious... Good luck during the title search and underwriting. Somehow, there is some miscommunication as Fannie Mae likely won’t buy the loan from them with it set up as a rate-and-term refi. But I honestly wish you the best and hope it squeaks through.

If that's the case, hopefully rate stays low 6 months from now so I can refinance. I am sitting at a steep 3.625% right now so I can't wait to refi to lower that.

[Hugo Township]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

I'm really confused by this story. LenderFi is set to close for me at what (I think?) is an amazing speed. This is my first time refinancing so I'm not sure, but it seems good? The CD has the Closing Date set for 15 days after my Loan Estimate date.

[Johny]

Any watermark refi users here? Wondering how long it takes to close for them. Locked in 8/31 and signed initial disclosures but still waiting no CD yet.

[1andDone]

Locked a no-cost 2.625% 30-year today with LenderFi. Refi'd from 3.5% down to 3% with ~$3,600 credit (cash + $2,500 Amex credit) in early July. I'm pretty pleased with these results, especially given my relatively lower loan value (under $300k).

[Goal33]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

I'm really confused by this story. LenderFi is set to close for me at what (I think?) is an amazing speed. This is my first time refinancing so I'm not sure, but it seems good? The CD has the Closing Date set for 15 days after my Loan Estimate date.

Like I said, my rate lock expiration has come and gone. They are consistently responsive to my requests for updates - “no update”. I am just as organized as you’d imagine most of us bogleheads are. They came back one time for an additional piece of info and it was provided immediately. I would love to have the experiences I’ve read about which is why I went for them and didn’t bother running parallel with two lenders upfront to see who could close first.

[chet96]

Hey folks:

I'm working with Loan Cabin, and only received a Draft loan estimate.

Is there a keyword I need to use to get the real info, or do I need to lock?

I'm receiving 1-2 word responses to emails. I get that they are busy - but I want to move forward.

[BrandonBogle]

I thought I remember seeing someone say something about being able to cash out the credit on a low-balance card. Anyone know the mechanics of that?

It's hidden in the Disputes section. Go to Account Services and follow the links like you were disputing a charge. One of the options is to request a credit balance refund.

[LPCes81]

In reply to some folks asking about the Better/Amex deal:

I applied to Better prior to having an Amex card. I applied for the Cash Magnet card (1.5% universal cask back) subsequently. I mentioned this to the processor and she just asked me to send her the card number once I got it.

Better asked me about all the other credit pulls on my report, whether they were for mortgage shopping, but didn't ask about the Amex pull.

Upon reading about the "link" from Amex to apply, I visited it and clicked it, but it simply said my request was submitted, nothing terribly informative.

A couple of days after closing, I got the same email multiple people have mentioned, "Congratulations on funding your loan, Brain! You can expect your American Express® statement credit to be applied to your account within 8-12 weeks."

I've checked the Better site daily since closing and today there was the task others have mentioned, asking me to input the last five digits of my card number.

I did happen to use the same email address for both Better and Amex, but I only really use the one email account, so that wasn't hard to coordinate.

Since I just got the card, I've only racked up a couple of hundred dollars on it. Since it's "only" 1.5% cash back, I'm only using it where better cash back bonuses wouldn't apply.

I'm pleased to hear reports that the credit will be applied even to low-balance cards.

I'll comment again when I see the credit.

For everyone who's been waiting with baited breath, today is the day! I just checked Quicken and a line item of "BETTER MORTGAGE CREDIT" for $2,500 just showed up on my Amex card.

I only had a balance of $256.57, so now I have a surplus of $2,243.43! I thought I remember seeing someone say something about being able to cash out the credit on a low-balance card. Anyone know the mechanics of that?

For posterity:

The timeline:

June 16: locked with Better
June 23: cleared to close
July 8: closing
Sept 2: get Amex credit (exactly 8 weeks)

I just looked at my Amex account and it's saying the credit posted on Aug. 17. But Quicken has loaded events that happened after that. Odd.

I'm still waiting to close with Better since Late July. I got a $3700 lender credit because they wanted to beat Lenderfi. I never heard of a $2500 Amex credit until now but is that on top of other credits?

[wootwoot]

I thought I remember seeing someone say something about being able to cash out the credit on a low-balance card. Anyone know the mechanics of that?

It's hidden in the Disputes section. Go to Account Services and follow the links like you were disputing a charge. One of the options is to request a credit balance refund.

https://www.americanexpress.com/us/cust ... efund.html

Did this today on my phone.

[LPCes81]

Dilemma here.

Originally LC gave me a quote 2.65 20 years $3900 Lender credit.
Better match by $4000 Lender credit.

LC came back and match today. Looking at the better estimate. If I can get the appraisal waived which better did on my 1st refi. Better LE will adjust and be better than LC by $500.

Would you go with better or LC?
I’m thinking go with better because it’s more money in my pocket($500 more)

Or do you think I will burn bridges with LC since they usually give the best rates. Better initial LE was trash. Don’t want to burn bridges with them if i refi again later this year or next.
What would you do?
Thanks

Sorry who is LC? I'm waiting on Better to close it keeps getting delayed because their title company is slow apparently. I want to refinance my parents mortgage as well hence why I asked who is LC in case I can find them a good rate. Thanks.

[Monsterflockster]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

Rates are competitive but you will be very lucky to close in the 60 day lock time frame. They also are sloppy in the paperwork and enter wrong data.

After my lock expired I cut ties and went to Lenderfi. They are also very competitive with the rates. We locked our rate & uploaded documents a week ago. I guess we are in the que because I haven’t heard a word.

Seems standard procedure in this low rate environment.

[JBTX]

Got a quote from loan depot today. Cash out, total loan $225k, 15 year, $1500 in points, $5100 fees (TX) 2.375%.

30 year adds almost half point to interest rate, not worth it for me.

Current loan is 15 year 3.25%

This seems like a no brainer to me, unless I can get better.

Any experience with loan depot?

Rates are competitive but you will be very lucky to close in the 60 day lock time frame. They also are sloppy in the paperwork and enter wrong data.

After my lock expired I cut ties and went to Lenderfi. They are also very competitive with the rates. We locked our rate & uploaded documents a week ago. I guess we are in the que because I haven’t heard a word.

Seems standard procedure in this low rate environment.

Mine is cash out refi and lender fi doesn't do those.

[AlpineJoe]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

I'm really confused by this story. LenderFi is set to close for me at what (I think?) is an amazing speed. This is my first time refinancing so I'm not sure, but it seems good? The CD has the Closing Date set for 15 days after my Loan Estimate date.

Like I said, my rate lock expiration has come and gone. They are consistently responsive to my requests for updates - “no update”. I am just as organized as you’d imagine most of us bogleheads are. They came back one time for an additional piece of info and it was provided immediately. I would love to have the experiences I’ve read about which is why I went for them and didn’t bother running parallel with two lenders upfront to see who could close first.

I hope I'm not in the same boat. I just joined this board to ask if this is typical - not hearing anything for a while.

My rate lock expires on 9/9, and my last contact with them was last Friday when they requested 1 additional document which I provided within an hour (W2's) They did say they were running 3.5-4 weeks from start to close.

Did they offer to extend the lock for free?

[gg1908]

Hello, first post ever on Bogleheads.

I am in my first Refi (current 30yr @ 3.5%). I was tracking rates at Ally (pre-approved but not locked), when I read on this forum about Lenderfi. Today I saw a good rate at Ally and went to compare with Lenderfi. Lenderfi looked better and so I applied. During the application it gave me a quote (3% with almost no fees) and I thought that by applying they would pull the scores and lock the rate if I agreed. Instead, after I applied I was told that it will take 2-3 days to review the application and the rate will be the live rate as of that date.
Is this the regular process? Was my expectation unrealistic? It seems that Ally would lock the rate if I give permission to pull my score.
Also, since they pulled my scores, should I apply to other lenders before the inquiry hits my credit score? (e.g. using bankrate or zillow)

Thanks!

[ossipago]

Just so I understand fully, let's say I am doing a no-cost loan in which the lender's credit matches the estimated fees. If I shop around for the third-party services and obtain a significant price reduction of say, $500, what generally happens to that money? Does it go back to me as cash, is it lost, or does it reduce the principal? Or something else? I am in DC.

[Goal33]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

I'm really confused by this story. LenderFi is set to close for me at what (I think?) is an amazing speed. This is my first time refinancing so I'm not sure, but it seems good? The CD has the Closing Date set for 15 days after my Loan Estimate date.

Like I said, my rate lock expiration has come and gone. They are consistently responsive to my requests for updates - “no update”. I am just as organized as you’d imagine most of us bogleheads are. They came back one time for an additional piece of info and it was provided immediately. I would love to have the experiences I’ve read about which is why I went for them and didn’t bother running parallel with two lenders upfront to see who could close first.

I hope I'm not in the same boat. I just joined this board to ask if this is typical - not hearing anything for a while.

My rate lock expires on 9/9, and my last contact with them was last Friday when they requested 1 additional document which I provided within an hour (W2's) They did say they were running 3.5-4 weeks from start to close.

Did they offer to extend the lock for free?

Yes, they said they would extend the lock.

[3of10]

[Some of the pages won't be filled out and you'll have to fill them out while there (i.e. a list of your residences for the last 10 years as well as whether you want to avoid funding on a Monday which could cause interest to accrue on both loans over the weekend).

Can you, or anyone else provide details on how funding on a Monday can cause interest to accrue over the weekend for both loans? I'm getting close to choosing a closing date and is trying to find the best day to close. Closing (3 day rule) will impact the day for funding, which will in turn have a bearing for the payoff day.

I'm trying to avoid having interest overlap for both lenders over a weekend. I've read a few posters mention not having the closing day on a Monday, but didn't mention why to avoid that particular day. The only rationale I can come up with is that closing on a Monday could result in funding taking place on Friday, which means that payoff might not take place until next Monday (spanning the weekend). It's not a big deal, but worth understanding more about.

[ossipago]

Hello, first post ever on Bogleheads.

I am in my first Refi (current 30yr @ 3.5%). I was tracking rates at Ally (pre-approved but not locked), when I read on this forum about Lenderfi. Today I saw a good rate at Ally and went to compare with Lenderfi. Lenderfi looked better and so I applied. During the application it gave me a quote (3% with almost no fees) and I thought that by applying they would pull the scores and lock the rate if I agreed. Instead, after I applied I was told that it will take 2-3 days to review the application and the rate will be the live rate as of that date.
Is this the regular process? Was my expectation unrealistic? It seems that Ally would lock the rate if I give permission to pull my score.
Also, since they pulled my scores, should I apply to other lenders before the inquiry hits my credit score? (e.g. using bankrate or zillow)

Thanks!

Inquiries for mortgages made during a 45-day period (14-day under the old scoring system that is partially retired) are treated as a single inquiry for the purposes of credit scoring. The answer is yes, but you don't have to rush to do it "before the inquiry hits."

[e5116]

Hello, first post ever on Bogleheads.

I am in my first Refi (current 30yr @ 3.5%). I was tracking rates at Ally (pre-approved but not locked), when I read on this forum about Lenderfi. Today I saw a good rate at Ally and went to compare with Lenderfi. Lenderfi looked better and so I applied. During the application it gave me a quote (3% with almost no fees) and I thought that by applying they would pull the scores and lock the rate if I agreed. Instead, after I applied I was told that it will take 2-3 days to review the application and the rate will be the live rate as of that date.
Is this the regular process? Was my expectation unrealistic? It seems that Ally would lock the rate if I give permission to pull my score.
Also, since they pulled my scores, should I apply to other lenders before the inquiry hits my credit score? (e.g. using bankrate or zillow)

Thanks!

Yes it's standard practice to give you the "live rate" at time of locking and not what the website gave you when you initially filled out your information. Some are faster than others. And the rate might be even better than what you saw -- but could be worse.

[e5116]

Makes sense. Will be going with the 30 and paying the 25 year rate in that case. Love this thread - thank you!

I'll provide a contrarian view on why a 25 might be better for certain situations. I actually went with a 25-year as didn't want to reset the clock on my mortgage in a residence I've already resided in for about five years. Yes, the rate is the same as a 30-year. Yes, theoretically you could follow the schedule of a 25-year on a 30 year mortgage.

However, I like simple.

I like being able to have a scheduled autopay in full each month. I'm not sure all servicers (or even most) let you autopay a larger amount than what's due. Furthermore, some servicers don't apply excess funds directly to the mortgage until a whole new payment is fulfilled. They technically allow "partial" payments, but don't immediately apply it to principal and "hold" it for you. So the amortization schedule would NOT be the same in that case. Please, correct me if I'm wrong here.

Because I didn't want to further extend my payoff date, I can easily afford the 25-year payment, and I like simple and automation by scheduling my monthly payment in full, the 25-year was a good choice.

Might be too late for you, but thought I'd reply in case others have the same question and might have similar considerations.

[Shikoku]

I did a cashout refinance in early August. People said I would have to wait 6 months before I am able to do a rate-and-term. However, when I chat with LenderFi, they said no problem, I can do a rate-and-term on their end without waiting so I got the payoff statement, locked in the rate at 2.75% 30 year no cost closing (lender credit covers everything except escrow).

Too good to be true? Now just waiting for closing. Hopefully, this goes off smoothly.

I truly mean this - not being facetious... Good luck during the title search and underwriting. Somehow, there is some miscommunication as Fannie Mae likely won’t buy the loan from them with it set up as a rate-and-term refi. But I honestly wish you the best and hope it squeaks through.

If that's the case, hopefully rate stays low 6 months from now so I can refinance. I am sitting at a steep 3.625% right now so I can't wait to refi to lower that.

If I were you, I would lock and start the process as long as I need not to pay anything upfront. I am not hiding anything. I will double check with the LO though before proceeding -- at least I will have e-mail record of the discussion. If at some point they say that it cannot be done at the promised rate, you ask them to honor the LE. In the worst case, you cancel and start later.

[jjhk121]

I have lost faith on LenderFi's ability to execute. Rate lock expiration has come and gone. Still in line to be underwritten. They came back one time for more information which I provided.

Super conforming, 2.5%, 75% LTV, CA, Lender Credit covers all costs, from a month ago. Will anybody match? Rates look to be right about where they were when I applied per mortgagenewsdaily.com - I didn't do any shopping because I was thrilled with this offer from LenderFi.

Appreciate any tips.

When you log in to your loan dashboard at https://app.lenderfi.com/app/login/partner/C8AX0T65 is there a bunch of items in your to-do list?

I was told by my processor that I was in line for underwriting last Friday and then all these to-do's showed up yesterday. I believe that they're all things to be done by the processor or closer. It gave me hope that my loan was moving along though. I locked on Aug 12 and wasn't moved to processing until Aug 21. I'm also in CA, high balance conforming, 74% LTV, locked at 2.625%.

[BrandonBogle]

I like being able to have a scheduled autopay in full each month. I'm not sure all servicers (or even most) let you autopay a larger amount than what's due. Furthermore, some servicers don't apply excess funds directly to the mortgage until a whole new payment is fulfilled. They technically allow "partial" payments, but don't immediately apply it to principal and "hold" it for you. So the amortization schedule would NOT be the same in that case. Please, correct me if I'm wrong here.

You can send any amount you want from your bank’s online bill pay, if you don’t have the flexibility to specify an amount in the lender’s online site. The memo line in the online bill pay check can denote an additional principal payment.

In my previous mortgages, I would send them two days apart, but that was for my record keeping vs. an actual need to send the payment and additional principal separately.

This would not affect the amortization of the mortgage either way as the interest is calculated monthly. So outside of the window when you are paying things off (and calculating per day interest), an additional principal payment on the 1st or the 10th make no difference.