Refinance Mega Thread

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pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

BrandonBogle wrote: Tue Sep 29, 2020 8:13 am
sunny_socal wrote: Tue Sep 29, 2020 7:58 am
bgh11 wrote: Tue Sep 29, 2020 4:01 am My guess is you were able to get the LE from Amerisave without paying the $500? Thanks.
Yes, but not without having the Amerisave quote in hand. Before going through AS the other quotes were pitiful, ranging 6k-10k in closing costs (ie. out of pocket, after all rebates.) Was I a chump to spend the $500? Seems worth it to save 0.25% in the rate (ie. LD vs AS)

All I have so far from Loan Cabin is a small email reply, at least there's been initial contact. I'll keep all these applications active and see which one closes first. AS has a head start but so far the LD process has been the smoothest and their website is excellent.
Sunny,

I think there is some confusion between your reply and bgh11's question. S/he was asking if you got the quote/loan estimate from Amerisave without paying the $500. Based on your reply, it sounds like the answer is "no, I paid the $500 fee, but still came out ahead and thus, it was worth paying even if I close with Loan Depot". Is this a correct understanding/clarification?
I just did get a full Loan Estimate from Amerisave today without having to pay anything (in the table in my previous messages).
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

pumpkinwaggle wrote: Thu Oct 01, 2020 12:19 am Am I understanding correctly that the options #2 total loan differs (is higher) because they just wrapped all the escrow and everything into the loan and giving me cash at closing?

Is the question here to pick between getting extra cash after all is done but with a higher loan total (#2) or having a lower loan but getting everything done for a wash (#1)?

It seems that Better would be the best option here given the rate, the fact I can get a credit and the good experience people have on the speed of closing overall.

Image
#2 also has $400 more in lender credits because of the higher balance. So I would recommend financing the closing costs and if you wish, make an extra principal payment in January. You’ll get the higher credits and bring the balance down.

That said, given the math you shared, I would do 2.875%

Be sure to take screenshots of your rate tables before you lock. You won’t see them after and they are handy to look back to. Feel free to do this for 20-year and 15-year as well. Also note that you can change which rate option up until closing, so you can change you mind in the next few weeks.
manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 »

Anyone else offering 2.375% like interactive mortgage?
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

BrandonBogle wrote: Thu Oct 01, 2020 1:08 am
pumpkinwaggle wrote: Thu Oct 01, 2020 12:19 am Am I understanding correctly that the options #2 total loan differs (is higher) because they just wrapped all the escrow and everything into the loan and giving me cash at closing?

Is the question here to pick between getting extra cash after all is done but with a higher loan total (#2) or having a lower loan but getting everything done for a wash (#1)?

It seems that Better would be the best option here given the rate, the fact I can get a credit and the good experience people have on the speed of closing overall.

Image
#2 also has $400 more in lender credits because of the higher balance. So I would recommend financing the closing costs and if you wish, make an extra principal payment in January. You’ll get the higher credits and bring the balance down.

That said, given the math you shared, I would do 2.875%

Be sure to take screenshots of your rate tables before you lock. You won’t see them after and they are handy to look back to. Feel free to do this for 20-year and 15-year as well. Also note that you can change which rate option up until closing, so you can change you mind in the next few weeks.
Awesome, thanks I will have a final look at that tomorrow and will then likely continue with Better at that 2.875% rate.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

pumpkinwaggle wrote: Thu Oct 01, 2020 12:19 am Thank you so much!!! I really appreciate the detailed explanation. Here is a follow up with some information based on your comments.

I checked the 2.875% at Better and it would result in a (A+B+C+E-LC) = -$2,753 (a credit). P&I would be $1,436. At 2.75% the P&I would be $1,413 so $23 less and be $2,132 less in credit ((A+B+C+E-LC) = -$621). So the break even would be 92 months or 7.7 years which seems to make sense to not pay extra closing fee for such a long break even time and given the fact that I want to pay it down faster.

For your comments 2, I will check Radian out and mention that to them. Is that "Radian" or "Radian Title Direct"? For comment 3 some quotes I got mentioned that they can waive the appraisal so I will also check with Better.

About the other lender:
- I did mean Loan Depot... I think it's fine, it seems that everyone is having a good experience with Better and I don't really want to take the risk for a few dollars a month. I post an updated table below with the info from Loan Depot. Looking at the numbers they provide the best rate but the closing cost are quite high at (A+B+C+E-LC) at $3,678. I would have to ask them a new estimate for a higher rate but no cost then given the direction you pointed me towards above?
- I am in CA. I submitted an application to Interactive Mortgage today. I haven't talked to anybody yet so I will need to follow up tomorrow. I will ask about the rate and fees as you suggest. Let's see if I can get an estimate tomorrow. Talking about Owning, they quoted me a really high origination fee for the cash-out option and apparently they cannot budge so that won't work for me.
- Did a quick only quote on LenderFi and they seem to not be as good as Better. They show 2.875% with no closing cost but no credit like Better has and I don't know if I want to go through one more application so I think I will pass......
- Also submitted an application to Loan Cabin. Let's see what they say.

Any comments on the #1 option? That was an option with about a wash on the costs at $-242 and should be a bit better if I can work out the items 1-2-3 you mention above. The total loan amount after refi would be quite a bit lower because they didn't wrap the property taxes in there. That was one of the first offers when I asked them to give me offers similar to others I had. Note that the cash to close include property taxes so that would also be paid by the money I would get back from my current escrow. Am I understanding correctly that the options #2 total loan differs (is higher) because they just wrapped all the escrow and everything into the loan and giving me cash at closing?

Is the question here to pick between getting extra cash after all is done but with a higher loan total (#2) or having a lower loan but getting everything done for a wash (#1)?

It seems that Better would be the best option here given the rate, the fact I can get a credit and the good experience people have on the speed of closing overall.

Image
LoanDepot: Yes, you can ask them for a higher rate option so that you can get your net costs to go from positive to negative. Their net costs at 2.5% are similar to Better's net costs at 2.5%, so my guess is that they will be in the ballpark of Better at 2.875% also. BUT, while Better caps their lender credits at $4999, LoanDepot is willing to go higher, so with LD you can explore the option of taking an even higher rate like 3% if you want more credits.

LenderFi: Once you apply, they usually give you rates that are around 0.25% better than what the website shows. So if you are seeing a no-cost 2.875% on the site, you might actually get an offer of no-cost 2.625%. If so, that would be your best offer. You could ask Better to match that, and then increase your rate to 2.75% to get your lender credit back up. My guess is that if this works out, you can wind up at 2.75% with similar lender credit as what you are currently showing for 2.875%.

Interactive Mortgage: If you get an offer of 2.5% and half a point of costs, I personally wouldn't go for it because of the points. BUT, similar to what I described with LenderFi, you could have Better match it and then move your rate back up to around 2.75%.

So depending on what you get back from LF or IM, you might be able to get a slightly better deal through another Better price-match.

If you REALLY wanted to optimize your pricing, here's what you could do:
1. Find out how your LoanDepot lender credits would look at 2.625%, 2.75%, 2.875%, 3%, etc.
2. See what offers you get back from LenderFi and Interactive Mortgage as I said above
3. If LF or IM (or both) gets you a better offer than what you have now, figure out which one has the best pricing difference compared to the corresponding rate at LD. Ask for LD to price-match that one. Sometimes LD is aggressive about beating other offers. While Better typically beats offers by $100, LD may beat offers by $500-1000.
4. If you want lender credits beyond what Better allows, at this point figure out where you want to be on LD's rate sheet, lock that, and move forward with LD. If you want to proceed with Better, then get an LE from LD and ask Better to match it. You'll have to do the math to figure out which rate to use for the LD LE, such that when Better price-matches it, you get close to the max lender credit at Better.

To summarize:
Easy option = Proceed with your 2.875% deal
A bit of extra work = Ask Better to price-match LF or IM if you get a better offer, then move your rate back up to increase lender credit
Most optimized = Do your LF/IM price-matching with LD to get a further improved deal, then take that to Better.

Regarding Radian title, search this thread for info on how to contact them and get a quote.
manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 »

Anyone else offering 2.375% like interactive mortgage?
gaurav811
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Re: Refinance Mega Thread

Post by gaurav811 »

I just applied via Interactive mortgage today. Was told 2.375% no cost loan was going to go to 2.5% tomorrow. So I locked it immediately.
It's a refi and I don't care how long they take to get it done. All I hope is that the servicer is decent and hassle free when all is said and done.
I just signed my 2.625% cashout refi last week and now I'm on to a new refi again to save 0.25% interest cost. That's why never pay points in any refi.
manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 »

gaurav811 wrote: Thu Oct 01, 2020 4:23 am I just applied via Interactive mortgage today. Was told 2.375% no cost loan was going to go to 2.5% tomorrow. So I locked it immediately.
It's a refi and I don't care how long they take to get it done. All I hope is that the servicer is decent and hassle free when all is said and done.
I just signed my 2.625% cashout refi last week and now I'm on to a new refi again to save 0.25% interest cost. That's why never pay points in any refi.
I just finished refi with Interactive but it was at a higher rate.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

gaurav811 wrote: Thu Oct 01, 2020 4:23 am I just applied via Interactive mortgage today. Was told 2.375% no cost loan was going to go to 2.5% tomorrow. So I locked it immediately.
It's a refi and I don't care how long they take to get it done. All I hope is that the servicer is decent and hassle free when all is said and done.
I just signed my 2.625% cashout refi last week and now I'm on to a new refi again to save 0.25% interest cost. That's why never pay points in any refi.
If you just did a cash out refi, you have to wait 6 months to do a rate-and-term refi. If you proceed with IM now, then I think it’s going to be considered another cash out refi, in which case they will charge you half a point.
neo_ny
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Re: Refinance Mega Thread

Post by neo_ny »

Guys - reading through the posts on here these are mostly non-jumbo loans correct? I refinanced in Jan this year and obviously the rates are better now but for loan amounts under the conforming limit ($535k in my case). My current balance is over that amount, is my best bet to bring the balance below that limit before pursuing a refi? Will the jumbo loans pricing catch up (or down I guess) to similar rates at some point? I am currently at 3.5% on a 30-yr fixed
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

neo_ny wrote: Thu Oct 01, 2020 8:43 am Guys - reading through the posts on here these are mostly non-jumbo loans correct? I refinanced in Jan this year and obviously the rates are better now but for loan amounts under the conforming limit ($535k in my case). My current balance is over that amount, is my best bet to bring the balance below that limit before pursuing a refi? Will the jumbo loans pricing catch up (or down I guess) to similar rates at some point? I am currently at 3.5% on a 30-yr fixed
If you are willing to pay down the balance, I would apply just put your zip codes’s conforming limit as the loan balance on the app. When you talk to a loan officer, be clear that you’ll bring the pay down to closing so they won’t wonder about the discrepancy. I would not pay it down in advance (at least not until you have been approved for the new mortgage).
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sunny_socal
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Re: Refinance Mega Thread

Post by sunny_socal »

pumpkinwaggle wrote: Thu Oct 01, 2020 1:05 am
BrandonBogle wrote: Tue Sep 29, 2020 8:13 am
sunny_socal wrote: Tue Sep 29, 2020 7:58 am
bgh11 wrote: Tue Sep 29, 2020 4:01 am My guess is you were able to get the LE from Amerisave without paying the $500? Thanks.
Yes, but not without having the Amerisave quote in hand. Before going through AS the other quotes were pitiful, ranging 6k-10k in closing costs (ie. out of pocket, after all rebates.) Was I a chump to spend the $500? Seems worth it to save 0.25% in the rate (ie. LD vs AS)

All I have so far from Loan Cabin is a small email reply, at least there's been initial contact. I'll keep all these applications active and see which one closes first. AS has a head start but so far the LD process has been the smoothest and their website is excellent.
Sunny,

I think there is some confusion between your reply and bgh11's question. S/he was asking if you got the quote/loan estimate from Amerisave without paying the $500. Based on your reply, it sounds like the answer is "no, I paid the $500 fee, but still came out ahead and thus, it was worth paying even if I close with Loan Depot". Is this a correct understanding/clarification?
I just did get a full Loan Estimate from Amerisave today without having to pay anything (in the table in my previous messages).
Well done! IMO they have some of the best rates but serve better as leverage with other lenders :wink:
(Come to think of it, I think I got the LE before paying as well, but at that point I had lost all hope since no other lender had even replied with a decent quote and it had been two weeks...)
mega317
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Re: Refinance Mega Thread

Post by mega317 »

BrandonBogle wrote: Thu Oct 01, 2020 9:20 am
neo_ny wrote: Thu Oct 01, 2020 8:43 am Guys - reading through the posts on here these are mostly non-jumbo loans correct? I refinanced in Jan this year and obviously the rates are better now but for loan amounts under the conforming limit ($535k in my case). My current balance is over that amount, is my best bet to bring the balance below that limit before pursuing a refi? Will the jumbo loans pricing catch up (or down I guess) to similar rates at some point? I am currently at 3.5% on a 30-yr fixed
If you are willing to pay down the balance, I would apply just put your zip codes’s conforming limit as the loan balance on the app. When you talk to a loan officer, be clear that you’ll bring the pay down to closing so they won’t wonder about the discrepancy. I would not pay it down in advance (at least not until you have been approved for the new mortgage).
Yes this sounds like a variation of what I did to bring LTV below 60%. Just told the LO to make the loan amount smaller and I brought the difference to close.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

I’m in a situation now and wanted opinions on what to do.
My loan with better is funded as of the 28th of Sept.

Back story: I was going back and forth between Better and loan cabin. And Better came out with the best loan estimate of 2.5 with 4700 lender credit. I emailed that loan estimate to my LO over at LC to see if they can beat it. They never message me back. So I sent another email saying I’m going with Better. I figure I’ll go with better since I know they’ll close the loan quickly and be done with it instead of 60 plus days.

Today, my LO assistant from loan cabin emailed me stating that my loan is going to Underwriting. I told her that I emailed LC Stating I’m going with a different lender. The original loan estimate was 2.625 5000 lender credit. She mention that they offer a float down 15 days before closing if rates drop 0.0025. And if it doesn’t than I can always withdrawal my file. I figure why not. Noting to lose.

My question: has anyone ever gone UP rates(not even sure if I’m allowed to)? From 2.5 to 2.625?
Normally I wouldn’t entertain it. But with 5000 lender credit I would profit from these deal. My monthly only goes up 15-20 dollars a month and I plan to refi again. The interest I’ll pay over the life of the loan is not a lot. But I plan to refi again so that doesn’t even matter.

Let me know what you would do?
Thanks
gaurav811
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Re: Refinance Mega Thread

Post by gaurav811 »

presto987 wrote: Thu Oct 01, 2020 8:31 am If you just did a cash out refi, you have to wait 6 months to do a rate-and-term refi. If you proceed with IM now, then I think it’s going to be considered another cash out refi, in which case they will charge you half a point.
That is not stated in any of the loan docs I have signed. I have read through each page and there is no mention of any six month lock-in or penalty to refi. Is this something they can charge after the fact without disclosing?
Glasgow
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Re: Refinance Mega Thread

Post by Glasgow »

I'm asked by loan officer to provide a copy of Grant Deed. Is it a norm now? I've never been asked for any refinance before.
Just want to share another data point that I do cash out refinance <$500K and the rate is 3% with $4.5K lender credit. I'll then refinance again later on when the loan will be no longer a cash out.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

Familyman2012 wrote: Thu Oct 01, 2020 11:51 am I’m in a situation now and wanted opinions on what to do.
My loan with better is funded as of the 28th of Sept.

Back story: I was going back and forth between Better and loan cabin. And Better came out with the best loan estimate of 2.5 with 4700 lender credit. I emailed that loan estimate to my LO over at LC to see if they can beat it. They never message me back. So I sent another email saying I’m going with Better. I figure I’ll go with better since I know they’ll close the loan quickly and be done with it instead of 60 plus days.

Today, my LO assistant from loan cabin emailed me stating that my loan is going to Underwriting. I told her that I emailed LC Stating I’m going with a different lender. The original loan estimate was 2.625 5000 lender credit. She mention that they offer a float down 15 days before closing if rates drop 0.0025. And if it doesn’t than I can always withdrawal my file. I figure why not. Noting to lose.

My question: has anyone ever gone UP rates(not even sure if I’m allowed to)? From 2.5 to 2.625?
Normally I wouldn’t entertain it. But with 5000 lender credit I would profit from these deal. My monthly only goes up 15-20 dollars a month and I plan to refi again. The interest I’ll pay over the life of the loan is not a lot. But I plan to refi again so that doesn’t even matter.

Let me know what you would do?
Thanks
you're already at 2.5 with 4700 credit. No, I would not go to 2.625 to get an extra 300 credit and take 5000.

if loan cabin can close first, then definitely, do both.

Ask Brandon if it's the other way ;)
zrzhu111
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Re: Refinance Mega Thread

Post by zrzhu111 »

Better want me to lock the rate if they can match the rate i sent to them. I guess i have to say yes. it doesn't really matter either after i lock the rate with Better.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Goal33 wrote: Thu Oct 01, 2020 12:25 pm
Familyman2012 wrote: Thu Oct 01, 2020 11:51 am I’m in a situation now and wanted opinions on what to do.
My loan with better is funded as of the 28th of Sept.

Back story: I was going back and forth between Better and loan cabin. And Better came out with the best loan estimate of 2.5 with 4700 lender credit. I emailed that loan estimate to my LO over at LC to see if they can beat it. They never message me back. So I sent another email saying I’m going with Better. I figure I’ll go with better since I know they’ll close the loan quickly and be done with it instead of 60 plus days.

Today, my LO assistant from loan cabin emailed me stating that my loan is going to Underwriting. I told her that I emailed LC Stating I’m going with a different lender. The original loan estimate was 2.625 5000 lender credit. She mention that they offer a float down 15 days before closing if rates drop 0.0025. And if it doesn’t than I can always withdrawal my file. I figure why not. Noting to lose.

My question: has anyone ever gone UP rates(not even sure if I’m allowed to)? From 2.5 to 2.625?
Normally I wouldn’t entertain it. But with 5000 lender credit I would profit from these deal. My monthly only goes up 15-20 dollars a month and I plan to refi again. The interest I’ll pay over the life of the loan is not a lot. But I plan to refi again so that doesn’t even matter.

Let me know what you would do?
Thanks
you're already at 2.5 with 4700 credit. No, I would not go to 2.625 to get an extra 300 credit and take 5000.

if loan cabin can close first, then definitely, do both.

Ask Brandon if it's the other way ;)
Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

presto987 wrote: Thu Oct 01, 2020 1:38 am
pumpkinwaggle wrote: Thu Oct 01, 2020 12:19 am Thank you so much!!! I really appreciate the detailed explanation. Here is a follow up with some information based on your comments.

I checked the 2.875% at Better and it would result in a (A+B+C+E-LC) = -$2,753 (a credit). P&I would be $1,436. At 2.75% the P&I would be $1,413 so $23 less and be $2,132 less in credit ((A+B+C+E-LC) = -$621). So the break even would be 92 months or 7.7 years which seems to make sense to not pay extra closing fee for such a long break even time and given the fact that I want to pay it down faster.

For your comments 2, I will check Radian out and mention that to them. Is that "Radian" or "Radian Title Direct"? For comment 3 some quotes I got mentioned that they can waive the appraisal so I will also check with Better.

About the other lender:
- I did mean Loan Depot... I think it's fine, it seems that everyone is having a good experience with Better and I don't really want to take the risk for a few dollars a month. I post an updated table below with the info from Loan Depot. Looking at the numbers they provide the best rate but the closing cost are quite high at (A+B+C+E-LC) at $3,678. I would have to ask them a new estimate for a higher rate but no cost then given the direction you pointed me towards above?
- I am in CA. I submitted an application to Interactive Mortgage today. I haven't talked to anybody yet so I will need to follow up tomorrow. I will ask about the rate and fees as you suggest. Let's see if I can get an estimate tomorrow. Talking about Owning, they quoted me a really high origination fee for the cash-out option and apparently they cannot budge so that won't work for me.
- Did a quick only quote on LenderFi and they seem to not be as good as Better. They show 2.875% with no closing cost but no credit like Better has and I don't know if I want to go through one more application so I think I will pass......
- Also submitted an application to Loan Cabin. Let's see what they say.

Any comments on the #1 option? That was an option with about a wash on the costs at $-242 and should be a bit better if I can work out the items 1-2-3 you mention above. The total loan amount after refi would be quite a bit lower because they didn't wrap the property taxes in there. That was one of the first offers when I asked them to give me offers similar to others I had. Note that the cash to close include property taxes so that would also be paid by the money I would get back from my current escrow. Am I understanding correctly that the options #2 total loan differs (is higher) because they just wrapped all the escrow and everything into the loan and giving me cash at closing?

Is the question here to pick between getting extra cash after all is done but with a higher loan total (#2) or having a lower loan but getting everything done for a wash (#1)?

It seems that Better would be the best option here given the rate, the fact I can get a credit and the good experience people have on the speed of closing overall.

Image
LoanDepot: Yes, you can ask them for a higher rate option so that you can get your net costs to go from positive to negative. Their net costs at 2.5% are similar to Better's net costs at 2.5%, so my guess is that they will be in the ballpark of Better at 2.875% also. BUT, while Better caps their lender credits at $4999, LoanDepot is willing to go higher, so with LD you can explore the option of taking an even higher rate like 3% if you want more credits.

LenderFi: Once you apply, they usually give you rates that are around 0.25% better than what the website shows. So if you are seeing a no-cost 2.875% on the site, you might actually get an offer of no-cost 2.625%. If so, that would be your best offer. You could ask Better to match that, and then increase your rate to 2.75% to get your lender credit back up. My guess is that if this works out, you can wind up at 2.75% with similar lender credit as what you are currently showing for 2.875%.

Interactive Mortgage: If you get an offer of 2.5% and half a point of costs, I personally wouldn't go for it because of the points. BUT, similar to what I described with LenderFi, you could have Better match it and then move your rate back up to around 2.75%.

So depending on what you get back from LF or IM, you might be able to get a slightly better deal through another Better price-match.

If you REALLY wanted to optimize your pricing, here's what you could do:
1. Find out how your LoanDepot lender credits would look at 2.625%, 2.75%, 2.875%, 3%, etc.
2. See what offers you get back from LenderFi and Interactive Mortgage as I said above
3. If LF or IM (or both) gets you a better offer than what you have now, figure out which one has the best pricing difference compared to the corresponding rate at LD. Ask for LD to price-match that one. Sometimes LD is aggressive about beating other offers. While Better typically beats offers by $100, LD may beat offers by $500-1000.
4. If you want lender credits beyond what Better allows, at this point figure out where you want to be on LD's rate sheet, lock that, and move forward with LD. If you want to proceed with Better, then get an LE from LD and ask Better to match it. You'll have to do the math to figure out which rate to use for the LD LE, such that when Better price-matches it, you get close to the max lender credit at Better.

To summarize:
Easy option = Proceed with your 2.875% deal
A bit of extra work = Ask Better to price-match LF or IM if you get a better offer, then move your rate back up to increase lender credit
Most optimized = Do your LF/IM price-matching with LD to get a further improved deal, then take that to Better.

Regarding Radian title, search this thread for info on how to contact them and get a quote.
This make it so much clearer for me, thank you so much!

I heard back from LenderFi. They can't do a cashout refi so they are out of the list. Waiting to hear from Interactive Mortgage for the no cost estimate and from Loan Depot on the no cost estimate as well as the lender credit for the other rates.

Also logging to Better website today, the 2.875% with $4,800 lender credit is not showing anymore. They show that for me to get $3,920 in lender credit I would have to go to 3.65% (yes, almost a full percent higher). I took a screen capture yesterday so hopefully they can still honor it. Interestingly though the 2.75% is still there and the credit is actually $200 more than what it was yesterday.

I'll wait a few more hours to hear from IM and Loan Depot if they call me back and will go ahead with that 2.75% from Better I think as it gives me a balance between rate and credit.

I can always ask them to match an offer or even change the rate to 2.875% even if I already started the process, right?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

BrandonBogle wrote: Thu Oct 01, 2020 12:49 pm
Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
Just to clarify. You refi down to 2.625 and then went UP to 3.5 then back down to 2.75?
presto987
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Re: Refinance Mega Thread

Post by presto987 »

pumpkinwaggle wrote: Thu Oct 01, 2020 12:42 pm This make it so much clearer for me, thank you so much!

I heard back from LenderFi. They can't do a cashout refi so they are out of the list. Waiting to hear from Interactive Mortgage for the no cost estimate and from Loan Depot on the no cost estimate as well as the lender credit for the other rates.

Also logging to Better website today, the 2.875% with $4,800 lender credit is not showing anymore. They show that for me to get $3,920 in lender credit I would have to go to 3.65% (yes, almost a full percent higher). I took a screen capture yesterday so hopefully they can still honor it. Interestingly though the 2.75% is still there and the credit is actually $200 more than what it was yesterday.

I'll wait a few more hours to hear from IM and Loan Depot if they call me back and will go ahead with that 2.75% from Better I think as it gives me a balance between rate and credit.

I can always ask them to match an offer or even change the rate to 2.875% even if I already started the process, right?
That is really weird what is happening to your Better ratesheet. Hopefully it will revert whenever the pricing next updates.

You can definitely change the rate after locking. As someone else noted, just make sure to take a screenshot of the ratesheet you lock, as you will lose access to that screen after you lock. And yes, you can request another price-match after locking too. But it's easier to do it before locking as it's easier to change your rate at that point.

My LO contact at Interactive Mortgage said that they wouldn't do a no-cost option for a cash-out. You would have to pay half a point. But you can still use their LE for price-matching with Better and then move up in rate.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Familyman2012 wrote: Thu Oct 01, 2020 12:52 pm
BrandonBogle wrote: Thu Oct 01, 2020 12:49 pm
Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
Just to clarify. You refi down to 2.625 and then went UP to 3.5 then back down to 2.75?
Yes, I've done three refi's since May.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

BrandonBogle wrote: Thu Oct 01, 2020 12:49 pm
Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
I agree. This is exactly what I'm trying to do. I refi'd with Better at the end of August at 2.625% with lender credit of $4999. I am now looking to refi again with Loan Cabin (using the application that I submitted at the same time as my Better application, lol. I guess there is a benefit of LC being slow).

LC's ratesheet goes all the way up to 2.875%, and LC doesn't cap their lender credits at $5k like Better, so the lender credit is quite attractive at 2.875%. So I am planning to refi from my current 2.625% to 2.875% in order to max out my lender credits with LC.

There is a concept called a Net Tangible Benefit test to ensure that unscrupulous lenders aren't churning borrowers for their own profit. In order to satisfy this test, the refi has to provide a net benefit to the borrower by either lowering their monthly payment, shortening their term, eliminating escrow, etc.

In most scenarios, Fannie/Freddie do not have specific requirements around Net Tangible Benefit. Some states may have specific requirements. Beyond that, I think each lender can adopt their own policy on how they want to satisfy this criteria.

I have discussed this topic with LOs from LoanDepot and Loan Cabin. I was told that at LoanDepot, they won't let you refi unless you're reducing your monthly payment by at least 5%, or doing something else like shortening your term. So they wouldn't allow me to do what I'm planning to do, because they don't want to be seen as putting borrowers into refis that don't make sense. On the other hand, my LO at Loan Cabin said that he has seen this happen before, and LC views lender credit as a tangible benefit, so they don't have any problem with it.

There is another issue, which is that the cash to borrower at closing cannot exceed a certain amount (e.g. $2000 for Fannie Mae loans). I believe the way to get around this if you have a very large lender credit is to apply to the credit to prepaid property taxes, or just reduce the loan amount if necessary.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

presto987 wrote: Thu Oct 01, 2020 1:37 pm
pumpkinwaggle wrote: Thu Oct 01, 2020 12:42 pm This make it so much clearer for me, thank you so much!

I heard back from LenderFi. They can't do a cashout refi so they are out of the list. Waiting to hear from Interactive Mortgage for the no cost estimate and from Loan Depot on the no cost estimate as well as the lender credit for the other rates.

Also logging to Better website today, the 2.875% with $4,800 lender credit is not showing anymore. They show that for me to get $3,920 in lender credit I would have to go to 3.65% (yes, almost a full percent higher). I took a screen capture yesterday so hopefully they can still honor it. Interestingly though the 2.75% is still there and the credit is actually $200 more than what it was yesterday.

I'll wait a few more hours to hear from IM and Loan Depot if they call me back and will go ahead with that 2.75% from Better I think as it gives me a balance between rate and credit.

I can always ask them to match an offer or even change the rate to 2.875% even if I already started the process, right?
That is really weird what is happening to your Better ratesheet. Hopefully it will revert whenever the pricing next updates.

You can definitely change the rate after locking. As someone else noted, just make sure to take a screenshot of the ratesheet you lock, as you will lose access to that screen after you lock. And yes, you can request another price-match after locking too. But it's easier to do it before locking as it's easier to change your rate at that point.

My LO contact at Interactive Mortgage said that they wouldn't do a no-cost option for a cash-out. You would have to pay half a point. But you can still use their LE for price-matching with Better and then move up in rate.
Thanks, yes strange. I got an LE from Loan Cabin that is a bit better than the one at Better and with the appraisal waved so hopefully they can match that and I will go with Better. Loan Cabin was at 2.75% with $3,500 lender credit (for about the same fees) so about $500 more credit than Better (and they seem to have inflated fees so I will shop for that, they even mention it in their email). I'm waiting to hear back from Loan Depot but I'm pretty happy with the deals for a cashout.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

^ I got the same comment from LC about "overinflated" title costs. But I don't think LC will update your LE after you choose a different title company. You could ask the question, but my guess is that you wouldn't see the new lower costs anywhere until your initial closing disclosure. So if you're planning to go with Better, there is no reason to shop for a title company to use with LC. But let me know if you hear differently!

Out of curiosity, how long did it take you to hear back from LC? If you just applied, I'm amazed that you already heard back.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

presto987 wrote: Thu Oct 01, 2020 2:15 pm ^ I got the same comment from LC about "overinflated" title costs. But I don't think LC will update your LE after you choose a different title company. You could ask the question, but my guess is that you wouldn't see the new lower costs anywhere until your initial closing disclosure. So if you're planning to go with Better, there is no reason to shop for a title company to use with LC. But let me know if you hear differently!

Out of curiosity, how long did it take you to hear back from LC? If you just applied, I'm amazed that you already heard back.
Yeah I think I was advised here yesterday to look at Radian Title to get that used by Better. Just got to look in this thread to find out how to give them a call to get a quote.

Loan Cabin actually gave me a loan estimate in just about a few hours. I submitted the application online at 10.30pm yesterday and got an email from the loan officer at 10am this morning and my LE at 11.50. So super happy with the speed here.
gaurav811
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Re: Refinance Mega Thread

Post by gaurav811 »

presto987 wrote: Thu Oct 01, 2020 8:31 am If you just did a cash out refi, you have to wait 6 months to do a rate-and-term refi. If you proceed with IM now, then I think it’s going to be considered another cash out refi, in which case they will charge you half a point.
Why would it be considered cash out refi when the cash is already disbursed to me by my previous lender ? IM is doing rate-and-term refi and paying off my balance at previous lender. Again, there was no language or T&C during previous cashout refi that said I can't refi again in 6 months.
Last edited by gaurav811 on Thu Oct 01, 2020 2:34 pm, edited 1 time in total.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

presto987 wrote: Thu Oct 01, 2020 1:50 pm
BrandonBogle wrote: Thu Oct 01, 2020 12:49 pm
Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
I agree. This is exactly what I'm trying to do. I refi'd with Better at the end of August at 2.625% with lender credit of $4999. I am now looking to refi again with Loan Cabin (using the application that I submitted at the same time as my Better application, lol. I guess there is a benefit of LC being slow).

LC's ratesheet goes all the way up to 2.875%, and LC doesn't cap their lender credits at $5k like Better, so the lender credit is quite attractive at 2.875%. So I am planning to refi from my current 2.625% to 2.875% in order to max out my lender credits with LC.

There is a concept called a Net Tangible Benefit test to ensure that unscrupulous lenders aren't churning borrowers for their own profit. In order to satisfy this test, the refi has to provide a net benefit to the borrower by either lowering their monthly payment, shortening their term, eliminating escrow, etc.

In most scenarios, Fannie/Freddie do not have specific requirements around Net Tangible Benefit. Some states may have specific requirements. Beyond that, I think each lender can adopt their own policy on how they want to satisfy this criteria.

I have discussed this topic with LOs from LoanDepot and Loan Cabin. I was told that at LoanDepot, they won't let you refi unless you're reducing your monthly payment by at least 5%, or doing something else like shortening your term. So they wouldn't allow me to do what I'm planning to do, because they don't want to be seen as putting borrowers into refis that don't make sense. On the other hand, my LO at Loan Cabin said that he has seen this happen before, and LC views lender credit as a tangible benefit, so they don't have any problem with it.

There is another issue, which is that the cash to borrower at closing cannot exceed a certain amount (e.g. $2000 for Fannie Mae loans). I believe the way to get around this if you have a very large lender credit is to apply to the credit to prepaid property taxes, or just reduce the loan amount if necessary.
Let me do a little more research on that.
This situation was not my intention. It just happen that Loan cabin never canceled my application when I told them to cancel specially. Instead they sent it to underwriting. Saying that, going from a 2.5 to 2.625 only increase my payment by no more than $20dollars. If I can profit again then I’ll definitely go through with it. Just don’t know what regulations are.

My property tax is due on Dec 1st. So hopefully the lender credit can go towards that. Better never collected my property tax because it was outside the 60 days policy which originally was told they will. But base on my LO from loan cabin. They’ll be collecting.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

^ Yes, so you should be good. I think this will work out well for you!
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

presto987 wrote: Thu Oct 01, 2020 3:06 pm ^ Yes, so you should be good. I think this will work out well for you!
Honestly, for so many years I wanted my 4.3% to go down. I finally am able to get a 2.5% after 2 refi.

It’s just unusual to refi your current rate to something higher instead of lower. But The more I think about. The more I say “why not”. Especially because it doesn’t make that big of a difference finically overall. I rather profit now than later. Again, if rates drop. Then I’ll refi again for the 4th time. If it doesn’t 2.625 is still better than my 4.3 that I had in April.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

gaurav811 wrote: Thu Oct 01, 2020 2:24 pm
presto987 wrote: Thu Oct 01, 2020 8:31 am If you just did a cash out refi, you have to wait 6 months to do a rate-and-term refi. If you proceed with IM now, then I think it’s going to be considered another cash out refi, in which case they will charge you half a point.
Why would it be considered cash out refi when the cash is already disbursed to me by my previous lender ? IM is doing rate-and-term refi and paying off my balance at previous lender. Again, there was no language or T&C during previous cashout refi that said I can't refi again in 6 months.
I could be wrong about this, but this is what I've heard. Someone please correct me if I've misstated. My understanding is that this is not a lender policy, but rather a Fannie/Freddie policy.
itsallaboutme
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Re: Refinance Mega Thread

Post by itsallaboutme »

Hello everyone I just refinanced I want to get a HELOC loan I wanted to know for the Appraisal would they accept the one done when I refinanced? I just closed last week of August. Made first payment on the refi today Oct 1st. We want to refinance for home improvements and a few other things. I see a lot of talk about third federal on this board. I was looking at my credit union Alliant I am new to HELO's so I don't really know what to look for. We would like to be able to borrow when we need the cash for things for the house etc. If we pay off the amount can we just close the account I see different answers on this.
Rookie999ja
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Joined: Fri Jun 28, 2019 2:34 pm

Re: Refinance Mega Thread

Post by Rookie999ja »

I am in the process of refinancing with American Financing, loans are currently in underwriting. Both loans are a VA loan, one is 20yrs and the other is 30yrs. The rate for both is 2.25 and they are covering all closing cost other than the VA funding fee.
Last edited by Rookie999ja on Thu Oct 01, 2020 7:04 pm, edited 1 time in total.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

pumpkinwaggle wrote: Thu Oct 01, 2020 2:04 pm
presto987 wrote: Thu Oct 01, 2020 1:37 pm
pumpkinwaggle wrote: Thu Oct 01, 2020 12:42 pm This make it so much clearer for me, thank you so much!

I heard back from LenderFi. They can't do a cashout refi so they are out of the list. Waiting to hear from Interactive Mortgage for the no cost estimate and from Loan Depot on the no cost estimate as well as the lender credit for the other rates.

Also logging to Better website today, the 2.875% with $4,800 lender credit is not showing anymore. They show that for me to get $3,920 in lender credit I would have to go to 3.65% (yes, almost a full percent higher). I took a screen capture yesterday so hopefully they can still honor it. Interestingly though the 2.75% is still there and the credit is actually $200 more than what it was yesterday.

I'll wait a few more hours to hear from IM and Loan Depot if they call me back and will go ahead with that 2.75% from Better I think as it gives me a balance between rate and credit.

I can always ask them to match an offer or even change the rate to 2.875% even if I already started the process, right?
That is really weird what is happening to your Better ratesheet. Hopefully it will revert whenever the pricing next updates.

You can definitely change the rate after locking. As someone else noted, just make sure to take a screenshot of the ratesheet you lock, as you will lose access to that screen after you lock. And yes, you can request another price-match after locking too. But it's easier to do it before locking as it's easier to change your rate at that point.

My LO contact at Interactive Mortgage said that they wouldn't do a no-cost option for a cash-out. You would have to pay half a point. But you can still use their LE for price-matching with Better and then move up in rate.
Thanks, yes strange. I got an LE from Loan Cabin that is a bit better than the one at Better and with the appraisal waved so hopefully they can match that and I will go with Better. Loan Cabin was at 2.75% with $3,500 lender credit (for about the same fees) so about $500 more credit than Better (and they seem to have inflated fees so I will shop for that, they even mention it in their email). I'm waiting to hear back from Loan Depot but I'm pretty happy with the deals for a cashout.
Alright so after sending the best offer from Loan Cabin to Better they matched. I will end up with a rate of 2.75% with a lender's credit of $3,799 for a total refi cost of -$1,715 (a credit). I still don't see the 2.875% for some reason (they say their algorithm sometimes don't show them when the lenders credit is not big enough to propose that rate) so asking about this but I am going to start with 2.75%. They say I can pick that later if it ever shows up in the table.

They also adjusted the loan total to wrap in the escrow so that the cash to close is a wash. It shows they owe me a whole $1!

Thank you all for the help here, couldn't have gotten this deal without your feedback! I will make sure to update with the process, hopefully it will all go smoothly.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

^ Great to hear! Assuming Better waives your appraisal, you should be able to save another $550. And by having them price-match title costs to Radian, that should be another $200 (they price-match this by increasing the lender credit by the amount of the price difference). Finally, your section "E" costs should go down when you get your initial closing disclosure.

If all goes as planned, hopefully you will make $2700 net credit on this refi!

If you get another better offer before you close, there is still room for them to increase lender credits by another $1000. But if not, you are in a great spot.
pumpkinwaggle
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Re: Refinance Mega Thread

Post by pumpkinwaggle »

presto987 wrote: Thu Oct 01, 2020 7:29 pm ^ Great to hear! Assuming Better waives your appraisal, you should be able to save another $550. And by having them price-match title costs to Radian, that should be another $200 (they price-match this by increasing the lender credit by the amount of the price difference). Finally, your section "E" costs should go down when you get your initial closing disclosure.

If all goes as planned, hopefully you will make $2700 net credit on this refi!

If you get another better offer before you close, there is still room for them to increase lender credits by another $1000. But if not, you are in a great spot.
Yes, it’s thanks to you all here! :D I was so confused yesterday and got back on track with your advice.

I emailed Radian this morning. Let’s see if I hear back.

PS: After getting the first estimate from Loan Depot yesterday and getting half a dozen calls and emails from them, I didn’t hear back from them today after asking for the no cost estimate... maybe all these bad reviews are correct...
schwank
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Re: Refinance Mega Thread

Post by schwank »

Overall I was happy with LoanDepot. Applied 8/17, closed 9/24, my old loan was paid off today 10/1. That included an in person appraisal. Communication was good overall. Minor change for cash due at closing based on due date for taxes, but it will pencil back out to no closing costs once my existing escrow is paid back.
presto987
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Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

LoanDepot is hit or miss depending on who you get. When I first applied, I got a phone call from someone who was unhelpful and somewhat rude. He had no interest in trying to beat my other offer.

I subsequently found an LO who was responsive, helpful, and able to access good deals. She is accessible by phone, email, and text and always got back to me on the same day. Happy to refer folks to her if you’re not already working with an LO there. You can check if an LO is already assigned to you by logging into your account.
happyyoda
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Re: Refinance Mega Thread

Post by happyyoda »

presto987 wrote: Thu Oct 01, 2020 1:50 pm
BrandonBogle wrote: Thu Oct 01, 2020 12:49 pm
Familyman2012 wrote: Thu Oct 01, 2020 12:37 pm Sorry if I wasn’t clear. My loan with better (2.5%) has already closed and funded on the 28th.I pocketed almost $1900.

I told loan cabin to close my file because I’m going with better. But they never did. They sent it to underwriting instead. Now, after my 2nd refi completed (sept 28th) I have an open case in underwriting with loan cabin. But it’s for 2.625 with $5000 lender credit.

Hope that makes sense.
If the numbers make sense for you, do it. They made sense in my case to do it. I refi’d to 2.625%, then 3.5%, then 2.75%. The 2.75% I could go all the way down to 1.875% with, but 2.75% was the sweet spot in credits vs. overall interest in my case.
I agree. This is exactly what I'm trying to do. I refi'd with Better at the end of August at 2.625% with lender credit of $4999. I am now looking to refi again with Loan Cabin (using the application that I submitted at the same time as my Better application, lol. I guess there is a benefit of LC being slow).

LC's ratesheet goes all the way up to 2.875%, and LC doesn't cap their lender credits at $5k like Better, so the lender credit is quite attractive at 2.875%. So I am planning to refi from my current 2.625% to 2.875% in order to max out my lender credits with LC.

There is a concept called a Net Tangible Benefit test to ensure that unscrupulous lenders aren't churning borrowers for their own profit. In order to satisfy this test, the refi has to provide a net benefit to the borrower by either lowering their monthly payment, shortening their term, eliminating escrow, etc.

In most scenarios, Fannie/Freddie do not have specific requirements around Net Tangible Benefit. Some states may have specific requirements. Beyond that, I think each lender can adopt their own policy on how they want to satisfy this criteria.

I have discussed this topic with LOs from LoanDepot and Loan Cabin. I was told that at LoanDepot, they won't let you refi unless you're reducing your monthly payment by at least 5%, or doing something else like shortening your term. So they wouldn't allow me to do what I'm planning to do, because they don't want to be seen as putting borrowers into refis that don't make sense. On the other hand, my LO at Loan Cabin said that he has seen this happen before, and LC views lender credit as a tangible benefit, so they don't have any problem with it.

There is another issue, which is that the cash to borrower at closing cannot exceed a certain amount (e.g. $2000 for Fannie Mae loans). I believe the way to get around this if you have a very large lender credit is to apply to the credit to prepaid property taxes, or just reduce the loan amount if necessary.
I locked and started the process with Loan Cabin 9 weeks ago. Still in the queue for the underwriter to review.

I have been checking with my LO every week. When I asked for a rate sheet, the LO said there is none and there is only one rate: the rate that I locked.

When I asked for a rate float down, the LO responded stating it would be considered only at the time of approval not before that. I am also told that the rate I locked (2.75%) is better than the current rate and hence I won't get a rate float down.

The only hopeful thing is they have promised to extend the rate lock beyond 60 days free of charge.

Did anyone here get a rate float down with Loan Cabin?

The waiting continues...
joelly
Posts: 290
Joined: Mon Oct 27, 2008 11:22 am

Re: Refinance Mega Thread

Post by joelly »

Our refi with LenderFi went well. The interest went from 4% to 2.75%. No cost. Loan balance $455K. Home value $620K. I used the link from one of the Bogleheads. Loan funded on 9/29/2020.
presto987
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Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

happyyoda wrote: Thu Oct 01, 2020 11:21 pm I locked and started the process with Loan Cabin 9 weeks ago. Still in the queue for the underwriter to review.

I have been checking with my LO every week. When I asked for a rate sheet, the LO said there is none and there is only one rate: the rate that I locked.

When I asked for a rate float down, the LO responded stating it would be considered only at the time of approval not before that. I am also told that the rate I locked (2.75%) is better than the current rate and hence I won't get a rate float down.

The only hopeful thing is they have promised to extend the rate lock beyond 60 days free of charge.

Did anyone here get a rate float down with Loan Cabin?

The waiting continues...
That is really weird about the rate sheet. What you're being told is in direct contradiction to what I and others have been told.

As far as the float down, I was told that it's a one-time thing that is only considered around 10 days before closing (which would be after you come out of underwriting). So that's consistent with what you've been told.

I am also not surprised that you're not currently eligible for a float down. In order to be eligible for a float down at LC, you need rates to drop by at least 0.125% (some other lenders require a 0.25% drop for float down). The rates at the end of July when you locked were pretty close to the best rates they've had. Plus now they are pricing in the 0.5% G-fee (though not sure if they take that into account for float down purposes when they are looking at someone who will close long before December).

Admittedly I don't know exactly how they evaluate the float down. Do they compare their current pricing to your locked pricing? Or do they look at a standardized pricing like the FRED rate? Etc.
zrzhu111
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Re: Refinance Mega Thread

Post by zrzhu111 »

Did Loan Depot ask you to pay about $20 (fee for credit report) to lock the rate? My LO told me to pay for that to lock the rate.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

zrzhu111 wrote: Fri Oct 02, 2020 11:18 am Did Loan Depot ask you to pay about $20 (fee for credit report) to lock the rate? My LO told me to pay for that to lock the rate.
Yes, they make you pay the credit report fee to proceed.
ChiKid24
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Re: Refinance Mega Thread

Post by ChiKid24 »

FrugalProfessor wrote: Wed Sep 30, 2020 1:59 pm
ChiKid24 wrote: Wed Sep 30, 2020 1:57 pm
mrmicro wrote: Mon Sep 28, 2020 7:53 pm Just closed my refi with Better today
Locked: 9/1
Loan funded: 9/28
Better Credits: No cost + ~3K credits
Rate: 2.5% 30 yr fixed in CA

Does anyone know what would be the wait period to refi again? Interactive Mortgage is offering 2.375. Is there a 6 month wait period with Better or do they take back credits if I refi even before the first payment?
No wait period with Better, unless they've changed their policies. I closed with them in July and locked with Lenderfi on a new refi the very next day.
Why did you do back-to-back refi's? Did rates fall dramatically or are you just playing the exploiting-lender-credits game (and rinsing and repeating)?
My first refi was with Better at 3% and credits that netted me an additional $1k after covering all costs. Second refi was with Lenderfi at 2.75% with credits to cover all closing costs, so net cost to me was $0. If rates fall and I get credits to cover the costs, I will continue to refi on the way down. That said, I did sign the 6-months no refi document with Lenderfi so probably should wait and see where things are early next year. Technically I can probably get out of it, or simply pay back the credit if rates fall so far it makes sense.
Soares1234
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Re: Refinance Mega Thread

Post by Soares1234 »

Jumbo Refi FYI

Consumer direct mortgage and CFBank were offering 2.875 on Jumbos. My loan amount is 580k. LTV 80%.
Soares1234
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Re: Refinance Mega Thread

Post by Soares1234 »

Fellow expert refi’ers and buyers,

This might be a dumb question but can we apply our boglehead refi skills to the process of getting a mortgage - jumping through a million different banks throwing loan estimates around?

Asking for a friend 👀
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Soares1234 wrote: Fri Oct 02, 2020 7:26 pm Fellow expert refi’ers and buyers,

This might be a dumb question but can we apply our boglehead refi skills to the process of getting a mortgage - jumping through a million different banks throwing loan estimates around?

Asking for a friend 👀
I’m not sure I understand your question. These “refi skills” are indeed the process of how Bogleheads have gotten mortgages.

So I am going to presume you are asking about purchase mortgages vs. refinance mortgages.

Assuming the above, yes, these same “skills” , “game” , “strategy”, “hustle” can be applied to purchase mortgages. However, the big gotcha there is that with purchase mortgages, “time is of the essence”. Often, in a real estate purchase, you can pull out of financing a week later and delay closing 60 days with a new lender (though you can pull out the financing, the actual purchase must still happen per the terms of the purchase contract). So usually, a purchase mortgage is more focused on getting it done in time vs. getting it done the fastest.

Look at refis. UWM’s Conquest program provides some great rates. Some borrowers have been able to get it for very little cost. However, in most cases, you will have to pay thousands in Section A coats. The benefit here is these can close in as little as 7 days (I’m not kidding). There is a premium paid for this expediency.

Similarly, Loan Cabin is mentioned many times as having some seriously phenomenal rates. However, people are lucky to close even within 60 days. And when your purchase contract usually requires you to have a firm commitment on financing within days, Loan Cabin taking 3 weeks just to get back about your initial app isn’t going to fly for a purchase. But on a refi, you have all the time in the world (though paying higher interest during that time).
happyyoda
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Re: Refinance Mega Thread

Post by happyyoda »

presto987 wrote: Fri Oct 02, 2020 10:04 am
happyyoda wrote: Thu Oct 01, 2020 11:21 pm I locked and started the process with Loan Cabin 9 weeks ago. Still in the queue for the underwriter to review.

I have been checking with my LO every week. When I asked for a rate sheet, the LO said there is none and there is only one rate: the rate that I locked.

When I asked for a rate float down, the LO responded stating it would be considered only at the time of approval not before that. I am also told that the rate I locked (2.75%) is better than the current rate and hence I won't get a rate float down.

The only hopeful thing is they have promised to extend the rate lock beyond 60 days free of charge.

Did anyone here get a rate float down with Loan Cabin?

The waiting continues...
That is really weird about the rate sheet. What you're being told is in direct contradiction to what I and others have been told.

As far as the float down, I was told that it's a one-time thing that is only considered around 10 days before closing (which would be after you come out of underwriting). So that's consistent with what you've been told.

I am also not surprised that you're not currently eligible for a float down. In order to be eligible for a float down at LC, you need rates to drop by at least 0.125% (some other lenders require a 0.25% drop for float down). The rates at the end of July when you locked were pretty close to the best rates they've had. Plus now they are pricing in the 0.5% G-fee (though not sure if they take that into account for float down purposes when they are looking at someone who will close long before December).

Admittedly I don't know exactly how they evaluate the float down. Do they compare their current pricing to your locked pricing? Or do they look at a standardized pricing like the FRED rate? Etc.
Thanks for your response.

I think my LO at Loan Cabin may have limited experience.

In today's update, my LO said that my loan would be conditionally approved next week and once I submit the requested documents, it would be approved and closed in a week. I have my doubts on the timeline that Loan Cabin has provided me.

I spoke to an Interactive Mortgage Loan consultant today, who is offering 2.5% no net cost (as opposed to 2.75% no net cost with Loan Cabin). Their timeline is 3 weeks to underwriting review/approval and then close within 35 days from the application date.

Given that Interactive Mortgage's rate & timeline is attractive can I start the refi with them? If Loan Cabin has more delays, I can drop them and go with Interactive Mortgage. If Loan Cabin closes sooner, can I provide that info to Interactive Mortgage to refi right after the first refi with LC?

Does Interactive Mortgage' have any 6 month clause (I am doing a no cash out refi).

I would like to complete my refi with the best rate before the FHFA fee kicks in on Dec 1st.
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