Refinance Mega Thread

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pitching101
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Re: Refinance Mega Thread

Post by pitching101 »

I'm supposed to close with LD tomorrow (30 yr 2.75% and 9k in credits - high closing costs in NY). My other competing lender just sent me same deal with 12k in credits. I just escalated to LD to match, but would others really cancel/push back closing for the extra $3k in credits? I'm leaning towards yes, but I feel awful for those people I'm working with at LD, but 3k is 3k right?

All other loan details are the same
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

pitching101 wrote: Thu Sep 24, 2020 1:24 pm I'm supposed to close with LD tomorrow (30 yr 2.75% and 9k in credits - high closing costs in NY). My other competing lender just sent me same deal with 12k in credits. I just escalated to LD to match, but would others really cancel/push back closing for the extra $3k in credits? I'm leaning towards yes, but I feel awful for those people I'm working with at LD, but 3k is 3k right?

All other loan details are the same
Don't feel bad, it is just business. Do you think if rates went up before you locked they would feel bad making you pay a higher rate?
grp2c
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Re: Refinance Mega Thread

Post by grp2c »

I have a locked LE with loancabin.com at 2%, 15y fixed, no points. Does anyone know if they will let you go up 1/8% and get a lender credit just prior to closing?
pitching101
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Re: Refinance Mega Thread

Post by pitching101 »

anon_investor wrote: Thu Sep 24, 2020 1:29 pm
pitching101 wrote: Thu Sep 24, 2020 1:24 pm I'm supposed to close with LD tomorrow (30 yr 2.75% and 9k in credits - high closing costs in NY). My other competing lender just sent me same deal with 12k in credits. I just escalated to LD to match, but would others really cancel/push back closing for the extra $3k in credits? I'm leaning towards yes, but I feel awful for those people I'm working with at LD, but 3k is 3k right?

All other loan details are the same
Don't feel bad, it is just business. Do you think if rates went up before you locked they would feel bad making you pay a higher rate?
Thanks for confirming! Totally agree
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

pitching101 wrote: Thu Sep 24, 2020 1:36 pm
anon_investor wrote: Thu Sep 24, 2020 1:29 pm
pitching101 wrote: Thu Sep 24, 2020 1:24 pm I'm supposed to close with LD tomorrow (30 yr 2.75% and 9k in credits - high closing costs in NY). My other competing lender just sent me same deal with 12k in credits. I just escalated to LD to match, but would others really cancel/push back closing for the extra $3k in credits? I'm leaning towards yes, but I feel awful for those people I'm working with at LD, but 3k is 3k right?

All other loan details are the same
Don't feel bad, it is just business. Do you think if rates went up before you locked they would feel bad making you pay a higher rate?
Thanks for confirming! Totally agree
Why not close, and then redo with other lender? Seems either costs you nothing. Seems scary to be to give up something closing tomorrow. New lender could fail to execute.
3of10
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Re: Refinance Mega Thread

Post by 3of10 »

jjhk121 wrote: Tue Sep 22, 2020 10:46 pm Has anybody paid closing costs with a personal check?

I owe about $900 cash to close and double checked with my processor the amount owed so that I could get a cashier's check from the bank. She said that for that amount I could pay with a personal check. I was surprised because I thought a cashier's check or bank wire was always required.
I just did a refi and was told that if the cost was less than $1,000, a personal check could be used, which I did.
jco
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Re: Refinance Mega Thread

Post by jco »

BrandonBogle wrote: Thu Sep 24, 2020 11:40 am
3of10 wrote: Thu Sep 24, 2020 11:35 am
jco wrote: Fri Sep 18, 2020 8:40 am Is there a "best" day of the week to close the loan? Or perhaps more specifically, a best day of the week for the loan to fund?

I think I read that you don't want the loan to fund on a Monday because you get charged interest by both lenders over the weekend?

I expect to schedule closing soon, so I want to be prepared.

Also, how do you know if you're getting charged double interest?
I read about this also, but didn't see any details on why you would get charged by both lenders. When you get the CD it will tell you on the top page the date when the funds will be disbursed. And in section F (pre-paid), it will list the days when interest is taken for the new lender.

So, if disbursement is on 9/17, and the pre-paid interest in section F also starts on 9/17, then I don't see the double-dipping over a weekend. Now, where I do see over-charging could be on the actual disbursement day itself, or payoff day (which might be on the next day). Then, the question is who is at fault. Maybe someone will post if it happened to them.
It is not uncommon for the payoff to be sent from the settlement agent the day AFTER disbursement.

The lender sends the funds to the settlement agent on the disbursement date and then the settlement agent gets the payoff out the next morning for instance. Or even if sent the same day, potentially after the old lender’s cutoff time.

So in such a case, if disbursement is on Friday, it could be the old lender gets payoff and stops charging interest on Monday.
Thank you for the clear explanation.

In reading further about the issue, I read that you shouldn't close on Friday because some things have to be recorded at a physical location (like at a court house) and if that doesn't happen on closing day, then it will happen the next business day. If the next business day is a Monday, that could mean two extra days of interest. In the article's context, I'm not sure whether the "closing day" meant the day the closing documents were signed or the day the loan is funded.

To be safe, I'll plan on closing on a Tuesday, Wednesday, or Thursday, which ensures that the funding date is a Monday, Tuesday, or Wednesday, respectively (holidays excepted).
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

jco wrote: Thu Sep 24, 2020 2:45 pm In reading further about the issue, I read that you shouldn't close on Friday because some things have to be recorded at a physical location (like at a court house) and if that doesn't happen on closing day, then it will happen the next business day. If the next business day is a Monday, that could mean two extra days of interest. In the article's context, I'm not sure whether the "closing day" meant the day the closing documents were signed or the day the loan is funded.

To be safe, I'll plan on closing on a Tuesday, Wednesday, or Thursday, which ensures that the funding date is a Monday, Tuesday, or Wednesday, respectively (holidays excepted).
That would be true for a purchase transactions or one of the few cases where a refi does NOT have a three-day recision period. In most refi cases, the documents aren’t filed until the recision period ends. So if closing on a Friday, the docs aren’t filed with the municipality until Wednesday.

Fri - closing day
Sat - 1st day of recision period
Sun - doesn’t count
Mon (if not holiday) - 2nd day of recision period
Tue - 3rd day of recision period
Tuesday at 23:59:59 local - recision period ends
Wed - docs are filed and (usually) funding/disbursement occurs
Last edited by BrandonBogle on Thu Sep 24, 2020 3:38 pm, edited 1 time in total.
jco
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Re: Refinance Mega Thread

Post by jco »

BrandonBogle wrote: Thu Sep 24, 2020 2:53 pm
jco wrote: Thu Sep 24, 2020 2:45 pm In reading further about the issue, I read that you shouldn't close on Friday because some things have to be recorded at a physical location (like at a court house) and if that doesn't happen on closing day, then it will happen the next business day. If the next business day is a Monday, that could mean two extra days of interest. In the article's context, I'm not sure whether the "closing day" meant the day the closing documents were signed or the day the loan is funded.

To be safe, I'll plan on closing on a Tuesday, Wednesday, or Thursday, which ensures that the funding date is a Monday, Tuesday, or Wednesday, respectively (holidays excepted).
That would be true for a purchase transactions or one of the few cases where a refi does NOT have a three-day recision period. In most refi cases, the documents aren’t filed until the recision period ends. So if closing on a Friday, the docs are filed with the municipality until Wednesday.

Fri - closing day
Sat - 1st day of recision period
Sun - doesn’t count
Mon (if not holiday) - 2nd day of recision period
Tue - 3rd day of recision period
Tuesday at 23:59:59 local - recision period ends
Wed - docs are filed and (usually) funding/disbursement occurs
Thanks for clearing that up (again)!
jjhk121
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Re: Refinance Mega Thread

Post by jjhk121 »

3of10 wrote: Thu Sep 24, 2020 2:28 pm
jjhk121 wrote: Tue Sep 22, 2020 10:46 pm Has anybody paid closing costs with a personal check?

I owe about $900 cash to close and double checked with my processor the amount owed so that I could get a cashier's check from the bank. She said that for that amount I could pay with a personal check. I was surprised because I thought a cashier's check or bank wire was always required.
I just did a refi and was told that if the cost was less than $1,000, a personal check could be used, which I did.
Yeah, I double and triple checked with my processor and closer and used a personal check. The notary didn't think anything of it so I'm sure the use of a personal check isn't as uncommon as the internet makes it seem.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

grp2c wrote: Thu Sep 24, 2020 1:34 pm I have a locked LE with loancabin.com at 2%, 15y fixed, no points. Does anyone know if they will let you go up 1/8% and get a lender credit just prior to closing?
According to my LO at LC, yes. He said that when you lock your rate, you are locking into your whole rate schedule, which means that you can change your combination of rate/lender credit before closing.
3of10
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Re: Refinance Mega Thread

Post by 3of10 »

BrandonBogle wrote: Thu Sep 24, 2020 12:23 pm
3of10 wrote: Thu Sep 24, 2020 12:12 pm
BrandonBogle wrote: Thu Sep 24, 2020 11:40 am It is not uncommon for the payoff to be sent from the settlement agent the day AFTER disbursement.

The lender sends the funds to the settlement agent on the disbursement date and then the settlement agent gets the payoff out the next morning for instance. Or even if sent the same day, potentially after the old lender’s cutoff time.

So in such a case, if disbursement is on Friday, it could be the old lender gets payoff and stops charging interest on Monday.
+1. I agree. It's the payoff day that becomes the issue if different than the disbursement day. Now, if the old lender gets payoff on a Monday, then I should be able to check the CD section F to confirm that the new lender starts charging interest on Mon/Tues.

If the new lender is charging interest for Sat/Sun, then I would go after the new lender for a refund for Sat/Sun because the new lender can only start charging interest after the payoff date. Is that correct? Another question is how do I know which day payoff has been completed? Do I have to contact the old lender?
Nope. They can charge interest from the moment you are legally obligated to pay them back any money they are giving you, which is your disbursement day (after closing you usually have a period that you can cancel the new loan, so you don’t become legally obligated to the new note until the 4th day after closing).

Some reported before a company being shady and charging interest from the closing date, which I’m sure you could contest and win, but likely isn’t worth the effort.

For payoff, I would watch the old lender’s online account of your loan to confirm. You can ask the settlement agent to give you confirmation of payoff, which is often the Fedwire Reference # for the wire transfer of the payoff.
Thanks. I appreciate the knowledge you bring to this thread. This explains why you don't want to close on a Monday. If you close on a Monday, disbursement will take place on a Friday. And, if payoff doesn't occur on that Friday, it will happen on Monday and both the old lender, and new lender will charge interest over the weekend.
Last edited by 3of10 on Thu Sep 24, 2020 10:38 pm, edited 2 times in total.
Johny
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Re: Refinance Mega Thread

Post by Johny »

Hi all,

I have a new loop to throw into my refinance dilemma.

$435,000 loan amount
Cash out refi

So currently I am locked with Loan Cabin at 2.75% 30 year with a lender credit of $5,900. My cash out of $100,000 will jump up to $103,000 due to this large credit. I was planning on hopefully getting a 2.5% or 2.375% rate/term in 6 months and being set for life.

Interactive mortgage (IM) just got back to me after 2 weeks as they are slammed. He offered a 2.375% 30 year and I need to pay a cash out fee of 0.5% of the loan($2,200) , other closing costs (minus pre paids) are paid by lender credits.

Should I roll with the new offer from IM and call it a day? My 60 day LC estimated closing will most likely be 90+ days from the stories I've read online. I don't mind waiting but the 2.375% is a nice rate and in 6 months maybe I will have to pay points to get that rate anyways? This is our forever home and I'd like to get the lowest possible rate to pay over the years...goal of 2.375%.

Thoughts?

***edit --- my IM LO took a look at the LC LE and said the lender credit cannot be more then the loan costs....is that true? If the lender credit is big and I am doing a cash out, wouldn't the extra credit just be added to my cash to borrow cash out monies?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Johny wrote: Thu Sep 24, 2020 6:43 pm my IM LO took a look at the LC LE and said the lender credit cannot be more then the loan costs....is that true? If the lender credit is big and I am doing a cash out, wouldn't the extra credit just be added to my cash to borrow cash out monies?
By IM's company policy perhaps. Watermark I believe has the same policy. I can tell you that in my prior refi AFTER closing costs, I net $6,200 to me for a rate-and-term refi. My closing costs were only $1,250 and I got over $7,500 in credits.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

BrandonBogle wrote: Thu Sep 24, 2020 6:50 pm
Johny wrote: Thu Sep 24, 2020 6:43 pm my IM LO took a look at the LC LE and said the lender credit cannot be more then the loan costs....is that true? If the lender credit is big and I am doing a cash out, wouldn't the extra credit just be added to my cash to borrow cash out monies?
By IM's company policy perhaps. Watermark I believe has the same policy. I can tell you that in my prior refi AFTER closing costs, I net $6,200 to me for a rate-and-term refi. My closing costs were only $1,250 and I got over $7,500 in credits.
This LO told me the same thing. As Brandon states, it may be IM's policy, but it's not true in general. I recently netted around $3700 after a rate-and-term refi with Better.

My understanding is that there are several ways to make use of a large lender credit that exceeds the closing costs:
1. Apply to prepaids, like prepaid property tax which can be large
2. Issue cash to borrower at closing. For a Fannie rate-and-term loan, the cash to borrower at closing can be up to $2000 or 2% of the loan amount, whichever is less. (They call this a limited cash-out). For a Freddie rate-and-term loan, the cash to borrower at closing can be up to $2000 or 1% of the loan amount, whichever is higher.
3. Reduce the loan amount, which is effectively like applying the credit toward principal. (I believe this is referred to as a principal curtailment, but I'm not 100% sure).

In a cash-out refi, which is what you're doing, I don't think the "cash to borrower" limitations even apply. So you should be able to get that money in your pocket.
zrzhu111
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Re: Refinance Mega Thread

Post by zrzhu111 »

pitching101 wrote: Thu Sep 24, 2020 1:24 pm I'm supposed to close with LD tomorrow (30 yr 2.75% and 9k in credits - high closing costs in NY). My other competing lender just sent me same deal with 12k in credits. I just escalated to LD to match, but would others really cancel/push back closing for the extra $3k in credits? I'm leaning towards yes, but I feel awful for those people I'm working with at LD, but 3k is 3k right?

All other loan details are the same
Can you share which is the competing lender? I'm in NY also. Been trying to find a decent lender licensed NY state. Thanks.
togb
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Re: Refinance Mega Thread

Post by togb »

This is a great thread even if I'm not sure I understand it all.

I'm looking to refi my residence and take cash out. I've got a couple lenders who have offered 2.875%, with closing costs varying from 3K to 9K. Some basically wanted to add points, and roll things into the loan, but I want visibility to the cost of the refi, and want it low. The best (Interfirst) is saying no lender fees, including no fee to self escrow.

Fees (all are NON-Lender fees)
Closing Fee*: $450.00
Search Fee: $150.00
Lenders Title Insurance Fee: $1,760.00
Title - Owner's Title Policy (Optional): $0.00
Appraisal Fee: $545.00
County Mortgage Fee: $106.00
*Included for APR
Total Fees: 3011

Lots of these posts are mentioning lender credits that zero out the fees-- are they giving credits to cover stuff like title insurance? Am I less likely to get these credits due to taking cash out ($125K)?
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

togb wrote: Thu Sep 24, 2020 9:54 pm This is a great thread even if I'm not sure I understand it all.

I'm looking to refi my residence and take cash out. I've got a couple lenders who have offered 2.875%, with closing costs varying from 3K to 9K. Some basically wanted to add points, and roll things into the loan, but I want visibility to the cost of the refi, and want it low. The best (Interfirst) is saying no lender fees, including no fee to self escrow.

Fees (all are NON-Lender fees)
Closing Fee*: $450.00
Search Fee: $150.00
Lenders Title Insurance Fee: $1,760.00
Title - Owner's Title Policy (Optional): $0.00
Appraisal Fee: $545.00
County Mortgage Fee: $106.00
*Included for APR
Total Fees: 3011

Lots of these posts are mentioning lender credits that zero out the fees-- are they giving credits to cover stuff like title insurance? Am I less likely to get these credits due to taking cash out ($125K)?
Typically, lenders charge more (or offer higher interest rate) for cash out. Yes, lender credits to cover title insurance, county fee etc. If the lender you mentioned above is giving you a $3011 then you will net $0 or close to it without counting prepaids. Depends on your comfort level, you may ask this 2.875% with $3011 total fee lender about 3% or 3.125% to see how much lender credits they are willing to offer.
togb
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Re: Refinance Mega Thread

Post by togb »


Typically, lenders charge more (or offer higher interest rate) for cash out. Yes, lender credits to cover title insurance, county fee etc. If the lender you mentioned above is giving you a $3011 then you will net $0 or close to it without counting prepaids. Depends on your comfort level, you may ask this 2.875% with $3011 total fee lender about 3% or 3.125% to see how much lender credits they are willing to offer.
[/quote]



Ah, that makes sense that a cash out would be higher. So far they are not giving credits-- the $3011 would be my actual cost to get the refi. I can actually live with that, it's a nice improvement over my current situation and I don't want to make a career out of shopping this. The new payment is $400 a month less, so break even in about six months. (I think I can get a better rate on the title insurance, by using the same folks who have already done it for my last refi)

I did just check out Better.com, and their best offer was for a higher rate AND higher costs.
tj
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Re: Refinance Mega Thread

Post by tj »

Is there any of these sites in particular that people would suggest for a purchase?
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

tj wrote: Thu Sep 24, 2020 11:38 pm Is there any of these sites in particular that people would suggest for a purchase?
I’d highly suggest a local lender for a purchase. I feel like you could lose a house using these sites. My LenderFi refi took 7 weeks and I’m highly organized with nothing complex.
tj
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Re: Refinance Mega Thread

Post by tj »

Goal33 wrote: Fri Sep 25, 2020 12:00 am
tj wrote: Thu Sep 24, 2020 11:38 pm Is there any of these sites in particular that people would suggest for a purchase?
I’d highly suggest a local lender for a purchase. I feel like you could lose a house using these sites. My LenderFi refi took 7 weeks and I’m highly organized with nothing complex.
How do you find a local one with competitive pricing? Does it make a difference if the site is local? Ha
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

tj wrote: Fri Sep 25, 2020 12:20 am
Goal33 wrote: Fri Sep 25, 2020 12:00 am
tj wrote: Thu Sep 24, 2020 11:38 pm Is there any of these sites in particular that people would suggest for a purchase?
I’d highly suggest a local lender for a purchase. I feel like you could lose a house using these sites. My LenderFi refi took 7 weeks and I’m highly organized with nothing complex.
How do you find a local one with competitive pricing? Does it make a difference if the site is local? Ha
Good question. I don’t know. Hopefully somebody else can chime in. Or maybe these sites prioritize timelines for purchases.
Sunrise
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Re: Refinance Mega Thread

Post by Sunrise »

tj wrote: Fri Sep 25, 2020 12:20 am
Goal33 wrote: Fri Sep 25, 2020 12:00 am
tj wrote: Thu Sep 24, 2020 11:38 pm Is there any of these sites in particular that people would suggest for a purchase?
I’d highly suggest a local lender for a purchase. I feel like you could lose a house using these sites. My LenderFi refi took 7 weeks and I’m highly organized with nothing complex.
How do you find a local one with competitive pricing? Does it make a difference if the site is local? Ha
You might try finding a local mortgage broker that works with United Wholesale Mortgage (UWM). Ask about the UWM "Conquest" loan program. You can find one of these brokers using "findamortgagebroker dot com". Wouldn't hurt to have an idea of what you could get through someone like a LenderFi, to give the broker some competition. Good luck.
Sunrise
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Re: Refinance Mega Thread

Post by Sunrise »

Goal33 wrote: Fri Sep 25, 2020 12:23 am
tj wrote: Fri Sep 25, 2020 12:20 am
Goal33 wrote: Fri Sep 25, 2020 12:00 am
tj wrote: Thu Sep 24, 2020 11:38 pm Is there any of these sites in particular that people would suggest for a purchase?
I’d highly suggest a local lender for a purchase. I feel like you could lose a house using these sites. My LenderFi refi took 7 weeks and I’m highly organized with nothing complex.
How do you find a local one with competitive pricing? Does it make a difference if the site is local? Ha
Good question. I don’t know. Hopefully somebody else can chime in. Or maybe these sites prioritize timelines for purchases.
I received an automated reply email from Loan Cabin that seemed to state that Purchase Applications DO jump to the front of the line for review, IF you somehow make sure that they know yours is a Purchase Application, the suggestion was to send a follow up email. But still, how long is the front of the line? Might be better off with a local lender for a purchase, as stated.
Sunrise
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Re: Refinance Mega Thread

Post by Sunrise »

Johny wrote: Thu Sep 24, 2020 6:43 pm Hi all,

I have a new loop to throw into my refinance dilemma.

$435,000 loan amount
Cash out refi

So currently I am locked with Loan Cabin at 2.75% 30 year with a lender credit of $5,900. My cash out of $100,000 will jump up to $103,000 due to this large credit. I was planning on hopefully getting a 2.5% or 2.375% rate/term in 6 months and being set for life.

Interactive mortgage (IM) just got back to me after 2 weeks as they are slammed. He offered a 2.375% 30 year and I need to pay a cash out fee of 0.5% of the loan($2,200) , other closing costs (minus pre paids) are paid by lender credits.

Should I roll with the new offer from IM and call it a day?
So if I understand correctly, with LC you net +$3,000 for 2.75%. And with IM you pay $2,200 for 2.375%.
No one 100% knows what mortgage rates are going to do in the future..........(or maybe somebody does, if so please share! :D )
So the IM deal effectively costs you $5,200 more than the LC deal. With the difference in rates, how many months to break even?
Will you be kicking yourself forever if you miss out on that 2.375% 30 year rate?
If this is truly your "forever home", maybe paying $2,200 for that 2.375% isn't that bad in the grand scheme of things.
Have you paid costs to refinance in the past?
But I think the months to break even is the key.....
Just some random thoughts. Good luck.

Edit: Looks like for $435k loan, P&I @ 2.75% is $1776 and @ 2.375% is $1691. So about $85/month difference. So about 61 months (~ 5 years) to break even. Will you stay in the house for at least 5 years?
Johny
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Re: Refinance Mega Thread

Post by Johny »

Hi Sunrise.

I slept on this last night. $5,200 is a big swing if we go with IM. We do plan to be in this house until retirement (25 years to go) and beyond unless unforseen circumstances happen but as far as selling and moving we are done with that part of our lives.

6 years to break even isn't so bad in the grand scheme of things but after sleeping on it, it would be hard to do that $5,200 swing to do the IM deal.

I think the LC @ 2.75% I might just do, then come back to IM in 6 months and do a rate/term with them since now I have a go to contact there that offers great rates. The LO at IM said if it wasn't a cash out he would have done a 2.375% 30 year at $0 costs to me so hopefully in 6 months rates don't jump up too much.

Sunrise wrote: Fri Sep 25, 2020 2:55 am
Johny wrote: Thu Sep 24, 2020 6:43 pm Hi all,

I have a new loop to throw into my refinance dilemma.

$435,000 loan amount
Cash out refi

So currently I am locked with Loan Cabin at 2.75% 30 year with a lender credit of $5,900. My cash out of $100,000 will jump up to $103,000 due to this large credit. I was planning on hopefully getting a 2.5% or 2.375% rate/term in 6 months and being set for life.

Interactive mortgage (IM) just got back to me after 2 weeks as they are slammed. He offered a 2.375% 30 year and I need to pay a cash out fee of 0.5% of the loan($2,200) , other closing costs (minus pre paids) are paid by lender credits.

Should I roll with the new offer from IM and call it a day?
So if I understand correctly, with LC you net +$3,000 for 2.75%. And with IM you pay $2,200 for 2.375%.
No one 100% knows what mortgage rates are going to do in the future..........(or maybe somebody does, if so please share! :D )
So the IM deal effectively costs you $5,200 more than the LC deal. With the difference in rates, how many months to break even?
Will you be kicking yourself forever if you miss out on that 2.375% 30 year rate?
If this is truly your "forever home", maybe paying $2,200 for that 2.375% isn't that bad in the grand scheme of things.
Have you paid costs to refinance in the past?
But I think the months to break even is the key.....
Just some random thoughts. Good luck.

Edit: Looks like for $435k loan, P&I @ 2.75% is $1776 and @ 2.375% is $1691. So about $85/month difference. So about 61 months (~ 5 years) to break even. Will you stay in the house for at least 5 years?
psychoslowmatic
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Re: Refinance Mega Thread

Post by psychoslowmatic »

psychoslowmatic wrote: Tue Sep 01, 2020 8:59 pm
drk wrote: Tue Sep 01, 2020 6:39 pm
psychoslowmatic wrote: Mon Aug 17, 2020 9:59 pm I put my money where my mouth is and applied with Third Federal for my small loan balance. I'm in NH, owe 127k on 260k (49% LTV) and currently am in year 6 of a Penfed 5/5 at 3.3125%. I applied for Third Federal's 10 year fixed at 2.79%, fixed $295 closing costs. I could maybe get closer to 2.5% on a 15 year but for no work I'm happy.

Applied Sunday, processor reached out Monday around 1pm via email with a link to their document upload portal and requested documents. Will update with any shenanigans.
Any updates? I see that Third Federal is advertising a Jumbo 5/1 as low as 2.44%, or 2.74% for the low-cost version, but I've never heard of them.
There was no money up front, and when I asked about whether my rate was locked they said yes, so I assume it's locked at applying. There's a pretty steep fee if you want to change rate/terms after applying so know what you want going in.

I applied on the 16th, they contacted me the 17th and had a bunch of docs for me to sign on the 20th. They did a drive by appraisal that came back on the 25th. Nothing since, I assume I'm in queue for underwriting. They said their loans have been running 45-60 days to close.
Update 9/22 - I think I'm out of underwriting. They had a couple simple questions that took me 5 minutes to satisfy. So my balance was 127k, I'm paying down to 110k at closing which is the minimum amount they'll finance before rates shoot up. They offered me a HELOC, for free, as part of closing. Annual fee waived because primary will be with them, no early closing fee, no initial draw required. 10 year draw, 20 year repay, prime-0.26% (2.99 right now). I'm taking it because there doesn't seem to be any reason not to.

I don't have a closing date and I'm not sure if there'll be one or two closings now, but I haven't asked.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Johny wrote: Fri Sep 25, 2020 8:32 am Hi Sunrise.

I slept on this last night. $5,200 is a big swing if we go with IM. We do plan to be in this house until retirement (25 years to go) and beyond unless unforseen circumstances happen but as far as selling and moving we are done with that part of our lives.

6 years to break even isn't so bad in the grand scheme of things but after sleeping on it, it would be hard to do that $5,200 swing to do the IM deal.

I think the LC @ 2.75% I might just do, then come back to IM in 6 months and do a rate/term with them since now I have a go to contact there that offers great rates. The LO at IM said if it wasn't a cash out he would have done a 2.375% 30 year at $0 costs to me so hopefully in 6 months rates don't jump up too much.

Sunrise wrote: Fri Sep 25, 2020 2:55 am
Johny wrote: Thu Sep 24, 2020 6:43 pm Hi all,

I have a new loop to throw into my refinance dilemma.

$435,000 loan amount
Cash out refi

So currently I am locked with Loan Cabin at 2.75% 30 year with a lender credit of $5,900. My cash out of $100,000 will jump up to $103,000 due to this large credit. I was planning on hopefully getting a 2.5% or 2.375% rate/term in 6 months and being set for life.

Interactive mortgage (IM) just got back to me after 2 weeks as they are slammed. He offered a 2.375% 30 year and I need to pay a cash out fee of 0.5% of the loan($2,200) , other closing costs (minus pre paids) are paid by lender credits.

Should I roll with the new offer from IM and call it a day?
So if I understand correctly, with LC you net +$3,000 for 2.75%. And with IM you pay $2,200 for 2.375%.
No one 100% knows what mortgage rates are going to do in the future..........(or maybe somebody does, if so please share! :D )
So the IM deal effectively costs you $5,200 more than the LC deal. With the difference in rates, how many months to break even?
Will you be kicking yourself forever if you miss out on that 2.375% 30 year rate?
If this is truly your "forever home", maybe paying $2,200 for that 2.375% isn't that bad in the grand scheme of things.
Have you paid costs to refinance in the past?
But I think the months to break even is the key.....
Just some random thoughts. Good luck.

Edit: Looks like for $435k loan, P&I @ 2.75% is $1776 and @ 2.375% is $1691. So about $85/month difference. So about 61 months (~ 5 years) to break even. Will you stay in the house for at least 5 years?
Sent you a PM
Sunrise
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Re: Refinance Mega Thread

Post by Sunrise »

Johny wrote: Fri Sep 25, 2020 8:32 am Hi Sunrise.

I slept on this last night. $5,200 is a big swing if we go with IM. We do plan to be in this house until retirement (25 years to go) and beyond unless unforseen circumstances happen but as far as selling and moving we are done with that part of our lives.

6 years to break even isn't so bad in the grand scheme of things but after sleeping on it, it would be hard to do that $5,200 swing to do the IM deal.

I think the LC @ 2.75% I might just do, then come back to IM in 6 months and do a rate/term with them since now I have a go to contact there that offers great rates. The LO at IM said if it wasn't a cash out he would have done a 2.375% 30 year at $0 costs to me so hopefully in 6 months rates don't jump up too much.
Johny,
Sounds like a good plan :D

You mentioned waiting 6 months before going back for a rate/term refi. Do you know if there a minimum amount of time one must wait between refinances (i.e. is it 6 months)? Is the waiting period specific to the lender? Or is it a Fannie/Freddie thing? What are the factors that determine the minimum wait time between refinances (assuming rates have dropped since your last one, and you're eager to do it again)? Thanks in advance to anyone who can chime in.
Johny
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Re: Refinance Mega Thread

Post by Johny »

Yes I confirmed its 180 days from one lender. I asked Lenderfi if I can contact him immediately after I close on this cash out refi. He said it would be really messed up to the lender I am working with now and to come back to him in 6 months.

I think one of the experts in here mentioned a freddie/fannie rule about 6 months waiting period as well. If I did refi within 6 months it would be considered another cash out not rate and term.

Sunrise wrote: Fri Sep 25, 2020 9:30 am
Johny wrote: Fri Sep 25, 2020 8:32 am Hi Sunrise.

I slept on this last night. $5,200 is a big swing if we go with IM. We do plan to be in this house until retirement (25 years to go) and beyond unless unforseen circumstances happen but as far as selling and moving we are done with that part of our lives.

6 years to break even isn't so bad in the grand scheme of things but after sleeping on it, it would be hard to do that $5,200 swing to do the IM deal.

I think the LC @ 2.75% I might just do, then come back to IM in 6 months and do a rate/term with them since now I have a go to contact there that offers great rates. The LO at IM said if it wasn't a cash out he would have done a 2.375% 30 year at $0 costs to me so hopefully in 6 months rates don't jump up too much.
Johny,
Sounds like a good plan :D

You mentioned waiting 6 months before going back for a rate/term refi. Do you know if there a minimum amount of time one must wait between refinances (i.e. is it 6 months)? Is the waiting period specific to the lender? Or is it a Fannie/Freddie thing? What are the factors that determine the minimum wait time between refinances (assuming rates have dropped since your last one, and you're eager to do it again)? Thanks in advance to anyone who can chime in.
Jagger
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Re: Refinance Mega Thread

Post by Jagger »

Hello all. New member after several years as a reader. Thanks to this thread, DW and I refinanced our 3.625% 30-year fixed mortgage to a 2.5% loan with LenderFi. Only 30 days from application to closing, with out-of-pocket costs under $600. A home run of a deal!

Only issue now is the servicing. According to the MERS site, Fannie Mae is the "investor," but LenderFi has kept the servicing. It's been radio silence from LF since the 8/29 close, the LF/BSI Financial site doesn't recognize our loan number -- and our first payment is due by 10/16.

Suggestions from anyone? Thanks.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

Johny wrote: Fri Sep 25, 2020 9:46 am Yes I confirmed its 180 days from one lender. I asked Lenderfi if I can contact him immediately after I close on this cash out refi. He said it would be really messed up to the lender I am working with now and to come back to him in 6 months.

I think one of the experts in here mentioned a freddie/fannie rule about 6 months waiting period as well. If I did refi within 6 months it would be considered another cash out not rate and term.

Sunrise wrote: Fri Sep 25, 2020 9:30 am
Johny wrote: Fri Sep 25, 2020 8:32 am Hi Sunrise.

I slept on this last night. $5,200 is a big swing if we go with IM. We do plan to be in this house until retirement (25 years to go) and beyond unless unforseen circumstances happen but as far as selling and moving we are done with that part of our lives.

6 years to break even isn't so bad in the grand scheme of things but after sleeping on it, it would be hard to do that $5,200 swing to do the IM deal.

I think the LC @ 2.75% I might just do, then come back to IM in 6 months and do a rate/term with them since now I have a go to contact there that offers great rates. The LO at IM said if it wasn't a cash out he would have done a 2.375% 30 year at $0 costs to me so hopefully in 6 months rates don't jump up too much.
Johny,
Sounds like a good plan :D

You mentioned waiting 6 months before going back for a rate/term refi. Do you know if there a minimum amount of time one must wait between refinances (i.e. is it 6 months)? Is the waiting period specific to the lender? Or is it a Fannie/Freddie thing? What are the factors that determine the minimum wait time between refinances (assuming rates have dropped since your last one, and you're eager to do it again)? Thanks in advance to anyone who can chime in.
If you do a cash-out refi, you are required to wait 6 months before you can do a rate-and-term refi.

If you do a rate-and-term refi, then you are not required to wait 6 months. Many people have been starting new refis right after closing a previous one (or even starting the process before they close). However, one thing to bear in mind is that if you refi again within 6 months, Fannie/Freddie is going to put the loan back to the original lender, which means they will lose whatever margin they made on it.
Sunrise
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Post by Sunrise »

Thanks for your replies Johny and presto, appreciate it! :sharebeer
GoodOmens
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Re: Refinance Mega Thread

Post by GoodOmens »

presto987 wrote: Fri Sep 25, 2020 10:43 am If you do a cash-out refi, you are required to wait 6 months before you can do a rate-and-term refi.

If you do a rate-and-term refi, then you are not required to wait 6 months. Many people have been starting new refis right after closing a previous one (or even starting the process before they close). However, one thing to bear in mind is that if you refi again within 6 months, Fannie/Freddie is going to put the loan back to the original lender, which means they will lose whatever margin they made on it.
And potentially blackball you from future business. Not great considering only a few lenders seem to be willing to give up some of their margin in terms of credits, lower rates etc.
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

Thank you again for this forum - I ended up saving 0.49% on my rate after discovering how to get lenders to match each other. For the sake of adding one more data point, here is a recap.

5/21: Locked rate with Lender #1 at 2.99% (30 yr, $285K) for $511 in closing costs. Paid $495 deposit (my mistake!)
7/23: After becoming aware of this forum, searched for more lenders. Found Union Savings Bank, who locked 2.875% with $350 closing costs.
7/23: Uploaded supporting documents for USB.
7/27: After a lot of back-and-forth, Lender #1 reluctantly agreed to price match USB at 2.875% but increased closing costs.
8/6: Lender #1 scheduled closing. However, I decided not to close with them. Lost my $495 deposit.
8/12: Sent locked LE from Lenderfi (2.5%, $650 closing costs plus escrow) to USB.
8/13: USB matched LF offer while keeping closing costs at $350 and no escrow.
8/21: LF declined to sweeten the pot, refusing to remove escrow or reduce closing costs.
9/18: Closing done with USB (just shy of 2 months after the application).
9/23: Loan got funded.
9/24: Existing lender received payoff wire and closed the account.

Overall, smooth experience with USB, albeit slow. My LO had told me that it was taking them at least 45 days to close so we were in the ballpark. I didn't upload any single document after the initial upload. They extended my rate lock without any question when the initial one expired. They save a lot on title costs by getting a Title Attorney's "opinion" rather than title "insurance" (their words). They also file a master mortgage document with county to save on recording fees.

A couple of rough spots - I had asked them to reduce my loan amount a few days before closing due to reduction in payoff amount but they said it would push the closing back by more than a week. Also, the preliminary closing estimate was only delivered the day before the closing, not 3 days before and it had the same payoff amount that was on the application 2 months ago! The final closing document next day had the correct payoff.

Also, USB charged me interest from my closing date, not disbursement date. So, I paid 5 extra days of interest (including the weekend). That seems unfair, according to me, but in the end, I didn't argue too much.

One good thing about USB is that they service their own loans. My LO said they don't "sell" their loans but I am not sure if he really meant servicing.

I am happy to share my LO's info if you are in USB territory. Just send me a PM.

Thanks again, and good luck!

Hoosier CPA wrote: Mon Aug 31, 2020 9:13 am
newbie20 wrote: Sun Aug 30, 2020 12:09 pm
BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
Sure - it's the least I can do after everything I have learned from this forum to save :moneybag :D

Lender # 2 is Union Savings Bank. They are a regional bank and they advertise $250 refinance on their website (https://usavingsbank.com/). They don't have online system to track loan status or anything like that, but my LO has been pleasant and prompt. He initially beat Lender #1 by offering 2.875% for $389 closing cost (A+B+C+E) and then matched LenderFi's rate of 2.5%, once I got a locked LE from them while with closing cost of $349. They service their own mortgage and have waived escrow for me. They locked my rate of 7/24 and the lock is good till 9/8. They have confirmed by email that they will extend the lock if the closing doesn't happen by then.

One downside I see is that it takes them 30 to 45 days to close. Some of you would probably be starting on your second refinance by then :P
That's who I am currently with - USB. Have a 20 year 3.0%. What did you get the 2.875% on - a 30 year? I'm working on a 2.875% 30 year with Better.com. I'm really doing it for 2 purposes - the $2,500 amex credit and the flexibility I'd get with a 30. I intend to follow the 20 year amortization. I've been with USB for about 12 years over 2 houses. I like working with them.
Last edited by newbie20 on Fri Sep 25, 2020 1:54 pm, edited 1 time in total.
KB8KB24
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Re: Refinance Mega Thread

Post by KB8KB24 »

My 60 day rate lock with Loan Cabin is almost expiring and I can't even get a response... Anyone else have the same experience? I would not recommend them unless you are OK with the stress.
Johny
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Re: Refinance Mega Thread

Post by Johny »

I've heard of some LC loans closing in 90-ish days. Keep us posted please.
johan851
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Re: Refinance Mega Thread

Post by johan851 »

Lots of good information and advice in this thread. I especially appreciate the reviews of various lenders - it's so hard to tell whether a lender is competent online.

Between Ally, LenderFi, Better, and a couple of other much slower lenders, I got a great initial rate from LenderFi. I sent the loan estimate on to Better (which had the worst rates at the outset) and they beat it. Their adjusted credit persisted as their rates changed, and ended up being substantially better the next day (while LenderFi's rates got worse). I was able to lock a 15 year fixed at 2.375% for $184 out the door (current loan is 2.75%). Not bad for a few hours of effort.

Better has been really easy so far, but we've only just started underwriting.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

johan851 wrote: Fri Sep 25, 2020 2:19 pm Lots of good information and advice in this thread. I especially appreciate the reviews of various lenders - it's so hard to tell whether a lender is competent online.

Between Ally, LenderFi, Better, and a couple of other much slower lenders, I got a great initial rate from LenderFi. I sent the loan estimate on to Better (which had the worst rates at the outset) and they beat it. Their adjusted credit persisted as their rates changed, and ended up being substantially better the next day (while LenderFi's rates got worse). I was able to lock a 15 year fixed at 2.375% for $184 out the door (current loan is 2.75%). Not bad for a few hours of effort.

Better has been really easy so far, but we've only just started underwriting.
Congrats! Great job.

I did that same trick on my last refi with Better. I got their adjusted offer after sending them a competing offer. I didn’t lock that night, but instead did it the next day. For the same rate, the cost was $1,075 cheaper! I figured if it got worse, I would complain why the pricing changed, but since it got better I said “thank you” and locked.


As a side note for others, don't be afraid (at least with Better) to keep shopping around. When they matched my "best at the time" offer in August, I was at 2.75% - $1,500 k in credits + closing costs. I kept playing the game and closed with 2.75% - $3,900 in credits + closing costs (and another $700 they said via email they will mail me b/c my loan won't get charged the new 0.5% refi fee) on a $150k-ish loan.
Jack Burton
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Re: Refinance Mega Thread

Post by Jack Burton »

Just want to chime in with my experience with Lender Fi so far. Current mortgage is 3.75%, 24.5 yrs left on 30 yr, 240k balance and 76% LTV. Selected a no-closing cost 25yr fixed (no cash out) yesterday on their website for around 3.1% and received my disclosure statement forms and loan application kit later that evening and the rate was actually lower at 2.875% with appraisal waived due to being considered a 'preferred' borrower (assuming that just means a good credit score and low DTI). Called them today to correct a few small mistakes on the loan application as well as address some other questions and they were easily accessible and very easy to work with. I know all that may change once it goes to processing but overall this has gone super smooth and seems too easy to be true.
Janus887
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Re: Refinance Mega Thread

Post by Janus887 »

A few posters mentioned Third Federal and their $295 closing costs. I'm looking into them and think their 5/1 ARM might be a good fit for me given the relatively small size of my loan at 135k (which I could pay off in full at any time if rates spiked years from now) and the likely interest rate environment going forward. That being the case, does anyone know of any other lenders who are offering very low closing costs on ARMs similar to Third Federal? I'd like to shop around if possible.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Fri Sep 25, 2020 2:31 pm
johan851 wrote: Fri Sep 25, 2020 2:19 pm Lots of good information and advice in this thread. I especially appreciate the reviews of various lenders - it's so hard to tell whether a lender is competent online.

Between Ally, LenderFi, Better, and a couple of other much slower lenders, I got a great initial rate from LenderFi. I sent the loan estimate on to Better (which had the worst rates at the outset) and they beat it. Their adjusted credit persisted as their rates changed, and ended up being substantially better the next day (while LenderFi's rates got worse). I was able to lock a 15 year fixed at 2.375% for $184 out the door (current loan is 2.75%). Not bad for a few hours of effort.

Better has been really easy so far, but we've only just started underwriting.
Congrats! Great job.

I did that same trick on my last refi with Better. I got their adjusted offer after sending them a competing offer. I didn’t lock that night, but instead did it the next day. For the same rate, the cost was $1,075 cheaper! I figured if it got worse, I would complain why the pricing changed, but since it got better I said “thank you” and locked.


As a side note for others, don't be afraid (at least with Better) to keep shopping around. When they matched my "best at the time" offer in August, I was at 2.75% - $1,500 k in credits + closing costs. I kept playing the game and closed with 2.75% - $3,900 in credits + closing costs (and another $700 they said via email they will mail me b/c my loan won't get charged the new 0.5% refi fee) on a $150k-ish loan.
Thanks for your experience!

Just as a counterpoint, I am currently locked with Better but my Processing Expert won't budge on my loan with competing LEs.

I wonder if they made some of mistake. I kept sending locked LEs to my Loan Officer and they kept saying they can't beat or match. Then I ended up doing it on a weekend before the 0.5% FHFA implementation, and whoever they found to look at it checked, said they couldn't match, but left the improved rates (previously, the rate I wanted wasn't on the rate table but they made it available and even a lower one) up. I went ahead and locked then. However, lender credits are still not that great compared to other offers I've had, and my Processing Expert has refused to match despite quite a bit of email communication and some phone calls after I sent at least two other LEs within 1 business day that were significantly better. They told me I could go with the other lender instead.
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BrandonBogle
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Post by BrandonBogle »

need403bhelp wrote: Fri Sep 25, 2020 4:44 pm Just as a counterpoint, I am currently locked with Better but my Processing Expert won't budge on my loan with competing LEs.

I wonder if they made some of mistake. I kept sending locked LEs to my Loan Officer and they kept saying they can't beat or match. ... They told me I could go with the other lender instead.
The YMMV about the whole industry sucks. Too much like buying a car. I fully expect there to be pricing differences from one place to the next and your credit profile (score, debt, income, assets, etc.), but it sucks that things are generally close to each other. We need a CarMax of home mortgages!

What has made you decide to stick with Better if the offers elsewhere are cheaper?
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Fri Sep 25, 2020 5:00 pm
need403bhelp wrote: Fri Sep 25, 2020 4:44 pm Just as a counterpoint, I am currently locked with Better but my Processing Expert won't budge on my loan with competing LEs.

I wonder if they made some of mistake. I kept sending locked LEs to my Loan Officer and they kept saying they can't beat or match. ... They told me I could go with the other lender instead.
The YMMV about the whole industry sucks. Too much like buying a car. I fully expect there to be pricing differences from one place to the next and your credit profile (score, debt, income, assets, etc.), but it sucks that things are generally close to each other. We need a CarMax of home mortgages!

What has made you decide to stick with Better if the offers elsewhere are cheaper?
Thanks!

I'm not sure I'm really sticking with them. But I do like that they closed pretty efficiently last time. I've done two refinances with them so they are a "known entity." With that said, I am talking about thousands of dollars in differences, so I doubt I'll really close with them if they don't improve their lender credits at all. But I'm not particularly tempted to withdraw until I close with another lender.

My only current hesitation is that they want me to add my new loan (that I am refinancing) to my credit report (it is too new), and none of the other lenders have asked for that. So I'm worried if I go through with that it will somehow affect me adversely with the other lenders.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Tuesday should be my disbursement date for my 2nd refi with better. Ended up with a 2.5
Both of my refi have been for 20 years. I was 6 years into my mortgage when I started this refi process in May. Didn’t want to go back to 30 years after 6 years.

I find it crazy that my mortgage interest is officially the same as my car loan interest.

Going to try to start my 3rd refi soon. My wife brought this up to me today. If I can get a 2.375 I’m now thinking of going back to 30 years. Make double car payments and I would be done with my car loan in 1 year instead of 2 and then just prepay mortgage. Is this a good idea?
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

Familyman2012 wrote: Fri Sep 25, 2020 5:24 pm Tuesday should be my disbursement date for my 2nd refi with better. Ended up with a 2.5
Both of my refi have been for 20 years. I was 6 years into my mortgage when I started this refi process in May. Didn’t want to go back to 30 years after 6 years.

I find it crazy that my mortgage interest is officially the same as my car loan interest.

Going to try to start my 3rd refi soon. My wife brought this up to me today. If I can get a 2.375 I’m now thinking of going back to 30 years. Make double car payments and I would be done with my car loan in 1 year instead of 2 and then just prepay mortgage. Is this a good idea?
Yes. You’re not getting a better rate for doing 20 years. I’d always go for 30 and prepay if I wanted to. You’ll get a better rate if you go for 15 years.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Goal33 wrote: Fri Sep 25, 2020 5:58 pm
Familyman2012 wrote: Fri Sep 25, 2020 5:24 pm Tuesday should be my disbursement date for my 2nd refi with better. Ended up with a 2.5
Both of my refi have been for 20 years. I was 6 years into my mortgage when I started this refi process in May. Didn’t want to go back to 30 years after 6 years.

I find it crazy that my mortgage interest is officially the same as my car loan interest.

Going to try to start my 3rd refi soon. My wife brought this up to me today. If I can get a 2.375 I’m now thinking of going back to 30 years. Make double car payments and I would be done with my car loan in 1 year instead of 2 and then just prepay mortgage. Is this a good idea?
Yes. You’re not getting a better rate for doing 20 years. I’d always go for 30 and prepay if I wanted to. You’ll get a better rate if you go for 15 years.
It was just hard for me to go back to a 30 year after paying 6 years. Both of our jobs are secure and we can afford a 20 year. Actually, we’re coming from a 4.3%. So our mortgage payment is actually lesss by 100. But shed 4ish years off down to 20years. But now, Im starting to entertain the idea of going back to 30 years if somehow I can get a 2.375 and you use the difference to pay of our car loan. Then prepay.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

need403bhelp wrote: Fri Sep 25, 2020 5:07 pm My only current hesitation is that they want me to add my new loan (that I am refinancing) to my credit report (it is too new), and none of the other lenders have asked for that. So I'm worried if I go through with that it will somehow affect me adversely with the other lenders.
That’s weird. My prior loan wasn’t/isn’t on my credit report yet. My first payment isn’t until 10/1. However, I uploaded my closing disclosures instead of a statement and it hasn’t been a problem. I closed this week and my payoff will get there before my first payment is even due.
Goal33 wrote: Fri Sep 25, 2020 5:58 pm Yes. You’re not getting a better rate for doing 20 years. I’d always go for 30 and prepay if I wanted to. You’ll get a better rate if you go for 15 years.
That actually depends. If I went to 2.625% instead of 2.75% (an extra $600), I could switch from 15 years to 20 for only another $67 loss in lender credits. I was very tempted to do that.
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Re: Refinance Mega Thread

Post by Anonymous Coward »

privateer79 wrote: Sun Aug 16, 2020 1:17 am
Anonymous Coward wrote: Sat Aug 15, 2020 10:08 pm For those of you who did the AmEx offer with Better.com, how long does it take for the statement credit to hit?
On paper it says 8-10 weeks after it closes. In my case it hit 3 weeks after close with a statement credit backdated to the closing date. I imagine that would be typical performance, but they don't want you to call and bother them until after 8-10 weeks in case there are delays.
Just to provide a final update on this, I had seen the 8-10 weeks thing. In our case, it took about five to six weeks to hit the statement.
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