Refinance Mega Thread
Re: Refinance Mega Thread
I need some help deciding what I should do. I have a rental that has about 23 years left on a 30 year 4.5% mortgage. 95k balance. The house is worth about 300k. Credit over 800 and great debt to income. I can't decide what to do. It seems like a lot of places dont want to do mortgages under 100k. The only quote I've gotten is penfed at 3.0% 15 year with about $2,500 in closing cost fees. It would make the payment go up about $120 and cut 7-8 years off. I feel like maybe I'd be better off just investing an extra $120 a month but I'm not sure. Any advice? Other options?
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Re: Refinance Mega Thread
Worked with Interactive Mortgage on my refinance and happy with the experience. Filled out form on their website on march 26th and got the notification today athat
$540k, loan, 30-year Fixed, 2.75% around $3k in closing costs (excluding prepaid interest). The best quote I had received was 2.875%. I contacted a couple of other brokers (loandepot, and a broker who lives in our community), neither of them could give me a better deal.
I wasn't as thorough as I'd have liked but I wanted it to but I wanted to get it done quickly due to a busy deadline at work. Last time I did a refi with citi and they were extremely painful.
$540k, loan, 30-year Fixed, 2.75% around $3k in closing costs (excluding prepaid interest). The best quote I had received was 2.875%. I contacted a couple of other brokers (loandepot, and a broker who lives in our community), neither of them could give me a better deal.
I wasn't as thorough as I'd have liked but I wanted it to but I wanted to get it done quickly due to a busy deadline at work. Last time I did a refi with citi and they were extremely painful.
Re: Refinance Mega Thread
Hi, has anyone here had any luck getting their $500 fee back from Amerisave? I have 4 loans (investment properties) in progress with them and it's been going on for months. I was informed my rates were locked, and I signed disclosures, but then they kept asking for more and more paperwork, documents I had already supplied, over and over. Now my mortgage broker is no longer at the company, I get passed from person to person, the rates have expired, and the fees have skyrocketed.
Re: Refinance Mega Thread
I received a commitment letter/closing disclosure from Chase on March 27 for 15-year refinance at interest rate 2.625/apr 2.817. $165,000 and 20 years left on existing loan, also with Chase, at 4.88 interest, so that's a big improvement. .387 points. A+B+C loan costs $3508. Monthly payment around $1,599.
Initial paper work, appraisal and underwriting went quickly and fairly smoothly despite a hinky online web app, even working out a challenge with my lack of 1040 income. But since approval, I've heard nothing firm about closing. The closing disclosure says closing would be April 5, but that date has come and gone. The mortgage officer originally said the closing would probably be in early April but also that refinances usually take 60 days. (I applied around March 6.) My case seems to be in the hands of a processor, whom I've never managed to get on the phone.
From reading other posts in this thread, I know delays are common. Should I call from time to time, or just wait? Rate is locked so I know I don't need to worry, but it's annoying. I have other things I could do with my time. I'm in Rhode Island, by the way. Big home-buying boom here, as in a lot of places, so mortgage folks might just be busy.
Initial paper work, appraisal and underwriting went quickly and fairly smoothly despite a hinky online web app, even working out a challenge with my lack of 1040 income. But since approval, I've heard nothing firm about closing. The closing disclosure says closing would be April 5, but that date has come and gone. The mortgage officer originally said the closing would probably be in early April but also that refinances usually take 60 days. (I applied around March 6.) My case seems to be in the hands of a processor, whom I've never managed to get on the phone.
From reading other posts in this thread, I know delays are common. Should I call from time to time, or just wait? Rate is locked so I know I don't need to worry, but it's annoying. I have other things I could do with my time. I'm in Rhode Island, by the way. Big home-buying boom here, as in a lot of places, so mortgage folks might just be busy.
Re: Refinance Mega Thread
How was the fee paid for? If it was by credit card, I would just file a chargeback. You can email Amerisave and state that you'd like a refund otherwise you'll chargeback (you are supposed to try resolve issues with the merchant before resorting to a chargeback) before you file. Based on your experience to date, I suspect that no one will reply anyway.JohnO65 wrote: ↑Tue Apr 13, 2021 8:48 pm Hi, has anyone here had any luck getting their $500 fee back from Amerisave? I have 4 loans (investment properties) in progress with them and it's been going on for months. I was informed my rates were locked, and I signed disclosures, but then they kept asking for more and more paperwork, documents I had already supplied, over and over. Now my mortgage broker is no longer at the company, I get passed from person to person, the rates have expired, and the fees have skyrocketed.
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Re: Refinance Mega Thread
Re: APY difference between loan disclosure and closing disclosure
2.5% (2.541 apy) on the original loan disclosure, the closing disclosure now shows an apy of 2.549
Is that normal?
2.5% (2.541 apy) on the original loan disclosure, the closing disclosure now shows an apy of 2.549
Is that normal?
Re: Refinance Mega Thread
I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
Re: Refinance Mega Thread
I think that's just a technicality with how APY is calculated. If your closing disclosure has more prepaid interest (maybe due to closing earlier in the month than the original estimate), I think this shows as a higher APY even though the rate is the same. You are technically holding the loan for a slightly longer time (but then holding your old loan for a slightly shorter time). The interest rate is really the apples to apples comparison.RoundingAgain wrote: ↑Thu Apr 15, 2021 9:11 pm Re: APY difference between loan disclosure and closing disclosure
2.5% (2.541 apy) on the original loan disclosure, the closing disclosure now shows an apy of 2.549
Is that normal?
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Re: Refinance Mega Thread
It's not worth it.ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
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Re: Refinance Mega Thread
Thanks.MrJedi wrote: ↑Thu Apr 15, 2021 10:28 pmI think that's just a technicality with how APY is calculated. If your closing disclosure has more prepaid interest (maybe due to closing earlier in the month than the original estimate), I think this shows as a higher APY even though the rate is the same. You are technically holding the loan for a slightly longer time (but then holding your old loan for a slightly shorter time). The interest rate is really the apples to apples comparison.RoundingAgain wrote: ↑Thu Apr 15, 2021 9:11 pm Re: APY difference between loan disclosure and closing disclosure
2.5% (2.541 apy) on the original loan disclosure, the closing disclosure now shows an apy of 2.549
Is that normal?
Re: Refinance Mega Thread
Just to confirm:ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
0. Eligible to refi with same company
1. Same term
2. 2.125% => 2.00%
3. $4500 net credit after costs
If so, no, there's no reason not to go for it.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
Re: Refinance Mega Thread
Which company is this? Thanks!ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
Re: Refinance Mega Thread
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Last edited by Mako52 on Fri Apr 16, 2021 10:05 am, edited 5 times in total.
Re: Refinance Mega Thread
Sebonic, but there are a number of qualifiers: $480k outstanding, 10-year term. Originally found them through Zillow Mortgage, none of the other lenders on that site are coming close to those numbers.SmokeyAbe wrote: ↑Thu Apr 15, 2021 10:54 pmWhich company is this? Thanks!ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
Re: Refinance Mega Thread
Having second thoughts after signing closing disclosures and seeing that rates are dropping again. I just signed my closing disclosures on the 15th. The loan is supposed to fund on the 20th.
A little about my situation. I started the refi process with Mutual of Omaha in December. My Loan agent screwed me by never locking the my rate of 2.5% on my $849k jumbo loan. Long story short, I was lied to in a very big way. So I parted ways with them after they offered me a higher rate since my rate was never locked in with them. I started a new refi with Better mortgage in March for 3% apr on $848k loan. Closing costs of 2k.
I’m seeing rates around 2.875, should I try for that or be content with my 3.0?
A little about my situation. I started the refi process with Mutual of Omaha in December. My Loan agent screwed me by never locking the my rate of 2.5% on my $849k jumbo loan. Long story short, I was lied to in a very big way. So I parted ways with them after they offered me a higher rate since my rate was never locked in with them. I started a new refi with Better mortgage in March for 3% apr on $848k loan. Closing costs of 2k.
I’m seeing rates around 2.875, should I try for that or be content with my 3.0?
Re: Refinance Mega Thread
I know this thread is for refinance but figured you guys have a lot of experience with online lenders.
How do you guys feel about these online lenders like LenderFi or Better for a purchase rather than refinance? I've heard mixed things but don't know the technical details.
How do you guys feel about these online lenders like LenderFi or Better for a purchase rather than refinance? I've heard mixed things but don't know the technical details.
Re: Refinance Mega Thread
You may want to check this thread about LenderFi - viewtopic.php?f=2&t=300733MrJedi wrote: ↑Sat Apr 17, 2021 8:36 am I know this thread is for refinance but figured you guys have a lot of experience with online lenders.
How do you guys feel about these online lenders like LenderFi or Better for a purchase rather than refinance? I've heard mixed things but don't know the technical details.
Re: Refinance Mega Thread
What's your current rate? 3.0% is still a great rate.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
Re: Refinance Mega Thread
My current rate is 3.625, I think I’m being picky. I’m most likely going to stick with my refi of 3%. It was a lot of work to get to closing. If I can shave off 0.5 I’d do it again.
Re: Refinance Mega Thread
Slight tangent, but I wanted to share this experience to get the group's take on this and also hopefully this can serve as a heads up for others. After going through this refinance process, in the past couple days I have received a couple of snail mail letters from 2 credit unions informing me about lines of credit applications that I did not apply for (not related to a refi) so they appear to be attempts at identity theft, and unfortunately more detrimental pulls on my credit. Of course, I have no way of knowing if this is in any way related to my refi applications or just a coincidence, but I am suspicious because I transmitted my personal information to several parties when shopping around, and now this is suddenly happening and has never happened before and I am normally extremely careful with my personal information. I am suspicious that maybe it was somehow intercepted or fell in to the hands of a bad actor in this whole refi process.
I will obviously have to deal with this and have calls in to the credit unions and will likely need to freeze my credit or at a minimum put a fraud alert. I wanted to bring this up because I may have been a bit too lax in protecting my information during all of this so a good reminder to be very strict about how you transmit your information, and to whom. I am also curious if others have had any similar experiences, and of course any tips on dealing with this unfortunate situation are welcomed.
I will obviously have to deal with this and have calls in to the credit unions and will likely need to freeze my credit or at a minimum put a fraud alert. I wanted to bring this up because I may have been a bit too lax in protecting my information during all of this so a good reminder to be very strict about how you transmit your information, and to whom. I am also curious if others have had any similar experiences, and of course any tips on dealing with this unfortunate situation are welcomed.
Re: Refinance Mega Thread
That payoff period is so short that it's definitely worth it. Maybe you'll get another crack at 2.5% at some point, but no reason to let this go.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
Re: Refinance Mega Thread
Closed 4/12/2021 (locked 2/22/2021) on VA IRRRL streamline refinance with Freedom Mortgage Corp. Freedom was also the prior mortgage holder.
2.25% APR, fixed, 29.5 years.
Loan amount $204,412, approx. 50% of property value.
$1532 lender credits which covered slightly over 100% of all costs, except replenishment of 8-month escrow (HOI and property taxes) minus prior escrow.
$0 funding fee as VA charges none with any percentage of service-connected disability.
Under 30 minutes on closing day with notary stopping by the house.
Overall an easy process though it required several phone to fix a couple errors on CDs, resulting in a 2-week delay in the closing date.
2.25% APR, fixed, 29.5 years.
Loan amount $204,412, approx. 50% of property value.
$1532 lender credits which covered slightly over 100% of all costs, except replenishment of 8-month escrow (HOI and property taxes) minus prior escrow.
$0 funding fee as VA charges none with any percentage of service-connected disability.
Under 30 minutes on closing day with notary stopping by the house.
Overall an easy process though it required several phone to fix a couple errors on CDs, resulting in a 2-week delay in the closing date.
Re: Refinance Mega Thread
In addition to placing a freeze for the 4 credit bureaus (Equifax, Experian, Transunion, Innovis?), you should definitely do a freeze for ChexSystems, which handles checking accounts (banks, credit unions,...).skyno wrote: ↑Sat Apr 17, 2021 9:01 pm Slight tangent, but I wanted to share this experience to get the group's take on this and also hopefully this can serve as a heads up for others. After going through this refinance process, in the past couple days I have received a couple of snail mail letters from 2 credit unions informing me about lines of credit applications that I did not apply for (not related to a refi) so they appear to be attempts at identity theft, and unfortunately more detrimental pulls on my credit. Of course, I have no way of knowing if this is in any way related to my refi applications or just a coincidence, but I am suspicious because I transmitted my personal information to several parties when shopping around, and now this is suddenly happening and has never happened before and I am normally extremely careful with my personal information. I am suspicious that maybe it was somehow intercepted or fell in to the hands of a bad actor in this whole refi process.
I will obviously have to deal with this and have calls in to the credit unions and will likely need to freeze my credit or at a minimum put a fraud alert. I wanted to bring this up because I may have been a bit too lax in protecting my information during all of this so a good reminder to be very strict about how you transmit your information, and to whom. I am also curious if others have had any similar experiences, and of course any tips on dealing with this unfortunate situation are welcomed.
"You don't stop playing because you're old. You're old because you've stopped playing"
Re: Refinance Mega Thread
Agreed--at least financially. One possible reason not to is, is your time and aggravation worth $4500 and 1/8 point? Refinances are a pain (or at least they often are). Things often pop up that you have to deal with, run a credit check, paperwork, a closing, dealing with lenders (or have them ignore you), etc. I would personally do it given your numbers, but just be aware that you're making an investment of your time.drk wrote: ↑Thu Apr 15, 2021 10:50 pmJust to confirm:ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
0. Eligible to refi with same company
1. Same term
2. 2.125% => 2.00%
3. $4500 net credit after costs
If so, no, there's no reason not to go for it.
Re: Refinance Mega Thread
I would only consider it with the same lender, because I already know how they work and things went very smoothly before. The 1/8 point reduction is irrelevant to me, I would just be doing it for the cash and I don't think anyone can say they are better off with a new mortgage at exactly the same rate as before (there's a checkbox for that, I forget the exact wording). I haven't pulled the trigger yet and while there are now other lenders with credits in the $4-5k range, for whatever reason my lender's credit has dropped down to around $3400. Much less enticing at that number.grogu wrote: ↑Sun Apr 18, 2021 8:43 pmAgreed--at least financially. One possible reason not to is, is your time and aggravation worth $4500 and 1/8 point? Refinances are a pain (or at least they often are). Things often pop up that you have to deal with, run a credit check, paperwork, a closing, dealing with lenders (or have them ignore you), etc. I would personally do it given your numbers, but just be aware that you're making an investment of your time.drk wrote: ↑Thu Apr 15, 2021 10:50 pmJust to confirm:ZinCO wrote: ↑Thu Apr 15, 2021 9:24 pm I did a successful refi back in November, lowering my rate from 3.5 to 2.125%. I was sure rates had bottomed out at that time, and of course everyone was afraid of the effect the new FHFA fee would have. Today I see that from the same company, I can lower it to 2.00% with a $6100 credit to boot. To all the serial refinancers out there... Is there ANY rational reason that I shouldn't go through the process again for approx $4500 in our pocket? My wife doesn't think it's worth it, looking for ammo here...
0. Eligible to refi with same company
1. Same term
2. 2.125% => 2.00%
3. $4500 net credit after costs
If so, no, there's no reason not to go for it.
Re: Refinance Mega Thread
Refinanced today.
Outstanding balance: $280,000
Remaining term on existing 20 year loan: 15 years
Old rate: 3.5%
New term: 15 years (no change)
New rate: 2.5%
Closing costs: ~$4000
Loan servicer: Ameris Bank (loan was bought by Freddie Mac in 2016)
Outstanding balance: $280,000
Remaining term on existing 20 year loan: 15 years
Old rate: 3.5%
New term: 15 years (no change)
New rate: 2.5%
Closing costs: ~$4000
Loan servicer: Ameris Bank (loan was bought by Freddie Mac in 2016)
Re: Refinance Mega Thread
I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
Re: Refinance Mega Thread
I'd estimate that I spent 10 hours total on my last refi, spread over five weeks. I'm not in the habit of picking up coins on the sidewalk, but I'll still take $450 an hour.grogu wrote: ↑Sun Apr 18, 2021 8:43 pm Agreed--at least financially. One possible reason not to is, is your time and aggravation worth $4500 and 1/8 point? Refinances are a pain (or at least they often are). Things often pop up that you have to deal with, run a credit check, paperwork, a closing, dealing with lenders (or have them ignore you), etc. I would personally do it given your numbers, but just be aware that you're making an investment of your time.
A useful razor: anyone asking about speculative strategies on Bogleheads.org has no business using them.
Re: Refinance Mega Thread
Looking specifically at my parameters on Zillow Mortgages, I see HomePlus Corp, AimLoan, BNC National Bank, and Sebonic Financial all offering credits between $3000 and $5600 (10-year term, 2.00% APR). I only have personal experience with Sebonic. FYI Better comes and goes on Zillow Mortgages; they were there a couple weeks ago, but gone now.presto987 wrote: ↑Mon Apr 19, 2021 4:01 pm I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
Re: Refinance Mega Thread
Thanks! I assume though that what you're seeing on Zillow Mortgages are lender credits that are offsetting closing costs. Do you live in a place where closing costs run in the thousands? I'm looking for an option where there will be thousands of dollars of lender credit left over even after all closing costs are taken care of.ZinCO wrote: ↑Mon Apr 19, 2021 4:24 pmLooking specifically at my parameters on Zillow Mortgages, I see HomePlus Corp, AimLoan, BNC National Bank, and Sebonic Financial all offering credits between $3000 and $5600 (10-year term, 2.00% APR). I only have personal experience with Sebonic. FYI Better comes and goes on Zillow Mortgages; they were there a couple weeks ago, but gone now.presto987 wrote: ↑Mon Apr 19, 2021 4:01 pm I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
Re: Refinance Mega Thread
Better was still having lender credits up to $5K just last month. Provident is also allowing for lender credits up around $4K.presto987 wrote: ↑Mon Apr 19, 2021 4:51 pmThanks! I assume though that what you're seeing on Zillow Mortgages are lender credits that are offsetting closing costs. Do you live in a place where closing costs run in the thousands? I'm looking for an option where there will be thousands of dollars of lender credit left over even after all closing costs are taken care of.ZinCO wrote: ↑Mon Apr 19, 2021 4:24 pmLooking specifically at my parameters on Zillow Mortgages, I see HomePlus Corp, AimLoan, BNC National Bank, and Sebonic Financial all offering credits between $3000 and $5600 (10-year term, 2.00% APR). I only have personal experience with Sebonic. FYI Better comes and goes on Zillow Mortgages; they were there a couple weeks ago, but gone now.presto987 wrote: ↑Mon Apr 19, 2021 4:01 pm I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
"You don't stop playing because you're old. You're old because you've stopped playing"
Re: Refinance Mega Thread
My closing costs in November were under $1500. You could always shoot for a higher rate, depending on what you are paying now, and that should increase the available credit...presto987 wrote: ↑Mon Apr 19, 2021 4:51 pmThanks! I assume though that what you're seeing on Zillow Mortgages are lender credits that are offsetting closing costs. Do you live in a place where closing costs run in the thousands? I'm looking for an option where there will be thousands of dollars of lender credit left over even after all closing costs are taken care of.ZinCO wrote: ↑Mon Apr 19, 2021 4:24 pmLooking specifically at my parameters on Zillow Mortgages, I see HomePlus Corp, AimLoan, BNC National Bank, and Sebonic Financial all offering credits between $3000 and $5600 (10-year term, 2.00% APR). I only have personal experience with Sebonic. FYI Better comes and goes on Zillow Mortgages; they were there a couple weeks ago, but gone now.presto987 wrote: ↑Mon Apr 19, 2021 4:01 pm I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
Re: Refinance Mega Thread
I spent substantially more hours spread over 6 months for mine. I'd still do it all over again, but the wasted time does eat into your profits. If you get unlucky, it can be a frustrating and inefficient process.
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Re: Refinance Mega Thread
Not sure if anyone else did this, but I got a quote from Quicken and then a few weeks later I got a "Match or Beat" offer in the mail. Basically $250 visa gift card if they couldn't match or beat an offer. In my case they couldn't and I just received the gift card. For those shopping, it might be worth a quick application/signup with Quicken. I seem to remember it being fairly painless.
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Re: Refinance Mega Thread
On each of the four refis in the past 12 months, I would estimate I spent roughly 10 hours over three to four weeks on each. I walked away from each one with thousands of profit over closing costs. I am tempted to do it again as I can see I can get another 0.125% rate reduction at no closing costs, but I'm waiting to see if I can get that with profit too.
Re: Refinance Mega Thread
Thank so much for sharing that screenshot of your costs, very helpful.RoundingAgain wrote: ↑Tue Apr 06, 2021 6:22 pm Could use some help/guidance...
Really wish there was a FAQ pinned in this thread.
I’m looking to refinance into a 15y (pay off home sooner with a modest increase to my monthly payment). I got preliminary quotes from LenderFi, AimLoan, Provident, and a few others. Provident had the best rates (I think).
Home value $235k per recent tax assessment, bought for $220k in 2016.
I owe $187k with a 30y 3.875% rate through WF.
Credit score is 814, liquid assets $300K+, one 0% car loan, minimal revolving cc debt (< $400).
The “mortgage consultant” who I’ve been corresponding with over email said their fees were $2765, +/- points/credits depending which rate I chose.
I filled out the full application with Provident and locked in a rate of 2.250% (I think the true apy was 2.413) which offered a credit of $233.
When I went to sign my “preliminary disclosure”, they left off all my liquid assets expect my checking account (which I don’t keep much in). They also put the value of my home at $240k, which is more in line with a Zillow/Redfin estimate.
More importantly, when I got down to the closing costs due at signing I’m looking at $7k. There’s a breakdown I can provide if necessary. I’m just confused (and why I wish there was a FAQ) bc from what I’ve deduced reading through this thread most refinance with minimal fees/closing costs? Is this normal?
Closing cost breakdown...
https://i.imgur.com/JRmPSDq.png
I am applying to refinance with Provident right now, and have basically the same numbers as you. They sent my a cost estimate that showed $785 for appraisal and $910 for title fees vs. $590 and $875, respectively. I have just reached out asking them to match the pricing you had.
Re: Refinance Mega Thread
Does anyone know if LenderFi still tends to offer deals that are better than their online rate quote? My experience last year was that after you applied, they would offer a no-cost option that was 0.125% or 0.25% better than the online quote, and many other people corroborated this. Wondering if anyone has recent data points though.
Re: Refinance Mega Thread
Jimmy21 wrote: ↑Sun Apr 11, 2021 4:49 pm I need some help deciding what I should do. I have a rental that has about 23 years left on a 30 year 4.5% mortgage. 95k balance. The house is worth about 300k. Credit over 800 and great debt to income. I can't decide what to do. It seems like a lot of places dont want to do mortgages under 100k. The only quote I've gotten is penfed at 3.0% 15 year with about $2,500 in closing cost fees. It would make the payment go up about $120 and cut 7-8 years off. I feel like maybe I'd be better off just investing an extra $120 a month but I'm not sure. Any advice? Other options?
I did a small mortgage on a rental a couple of years ago with AIMloan.com
Was actually a cash out refi, which is usually tougher on rentals, but they did it. Was about 100k. 30 yr fixed was @ 4%.
Honestly I think you won't find rates tremendously better than what you've got for a rental. And with such a small balance, won't likely move the needle that much, to be worthwhile paying the closing costs.
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Re: Refinance Mega Thread
Good to hear. I didn’t end up going with Provident, but I have to say their customer service is excellent. The consultant I worked with at Provident, knowing I was pretty new to refinancing, went over my offer from LenderFi and basically said, “yep, that’s a better deal by $300, you should take it”.noraz123 wrote: ↑Tue Apr 20, 2021 2:32 pmThank so much for sharing that screenshot of your costs, very helpful.RoundingAgain wrote: ↑Tue Apr 06, 2021 6:22 pm Could use some help/guidance...
Really wish there was a FAQ pinned in this thread.
I’m looking to refinance into a 15y (pay off home sooner with a modest increase to my monthly payment). I got preliminary quotes from LenderFi, AimLoan, Provident, and a few others. Provident had the best rates (I think).
Home value $235k per recent tax assessment, bought for $220k in 2016.
I owe $187k with a 30y 3.875% rate through WF.
Credit score is 814, liquid assets $300K+, one 0% car loan, minimal revolving cc debt (< $400).
The “mortgage consultant” who I’ve been corresponding with over email said their fees were $2765, +/- points/credits depending which rate I chose.
I filled out the full application with Provident and locked in a rate of 2.250% (I think the true apy was 2.413) which offered a credit of $233.
When I went to sign my “preliminary disclosure”, they left off all my liquid assets expect my checking account (which I don’t keep much in). They also put the value of my home at $240k, which is more in line with a Zillow/Redfin estimate.
More importantly, when I got down to the closing costs due at signing I’m looking at $7k. There’s a breakdown I can provide if necessary. I’m just confused (and why I wish there was a FAQ) bc from what I’ve deduced reading through this thread most refinance with minimal fees/closing costs? Is this normal?
Closing cost breakdown...
https://i.imgur.com/JRmPSDq.png
I am applying to refinance with Provident right now, and have basically the same numbers as you. They sent my a cost estimate that showed $785 for appraisal and $910 for title fees vs. $590 and $875, respectively. I have just reached out asking them to match the pricing you had.
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Re: Refinance Mega Thread
Someone local to me told me he got an offer from Loan Depot for a 10/1 ARM with a 2.125% rate no-cost.
Is anybody else seeing something similar?
Is anybody else seeing something similar?
Re: Refinance Mega Thread
Yes, if I do a search on Bankrate.com, I see that option.simplesimon wrote: ↑Wed Apr 21, 2021 10:31 am Someone local to me told me he got an offer from Loan Depot for a 10/1 ARM with a 2.125% rate no-cost.
Is anybody else seeing something similar?
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Re: Refinance Mega Thread
Does this option interest anybody?presto987 wrote: ↑Wed Apr 21, 2021 10:34 amYes, if I do a search on Bankrate.com, I see that option.simplesimon wrote: ↑Wed Apr 21, 2021 10:31 am Someone local to me told me he got an offer from Loan Depot for a 10/1 ARM with a 2.125% rate no-cost.
Is anybody else seeing something similar?
Re: Refinance Mega Thread
Absolutely. I think it's very attractive. You're getting a similar rate as a 15-year fixed, maybe even a bit better, but you only have to make payments corresponding to a 30-year term. And 10 years is a long time; many people won't have the house for longer than that.
This 10/1 is exactly what I would choose, except that I'm not planning to keep my house for very long at all, so I'd rather go with a loan that lets me make money via lender credit. I don't think LD is allowing that anymore, and Better isn't offering ARMs on refis.
This 10/1 is exactly what I would choose, except that I'm not planning to keep my house for very long at all, so I'd rather go with a loan that lets me make money via lender credit. I don't think LD is allowing that anymore, and Better isn't offering ARMs on refis.
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Re: Refinance Mega Thread
According to Bankrate, LD will want about $3k in fees - haven't tried to get in touch with them to negotiate credits. Also for me to get this rate it looks like I need to go from my super conforming loan to conforming, which would require >$100k paydown...by my math it looks like an ROI of about 4.9% on the $100k hm...presto987 wrote: ↑Wed Apr 21, 2021 3:00 pm Absolutely. I think it's very attractive. You're getting a similar rate as a 15-year fixed, maybe even a bit better, but you only have to make payments corresponding to a 30-year term. And 10 years is a long time; many people won't have the house for longer than that.
This 10/1 is exactly what I would choose, except that I'm not planning to keep my house for very long at all, so I'd rather go with a loan that lets me make money via lender credit. I don't think LD is allowing that anymore, and Better isn't offering ARMs on refis.
Re: Refinance Mega Thread
That's a good point on the fees; I'm assuming that they will let you increase your rate in order to offset the fees, but admittedly I'm not sure how well that works on ARMs. If this were a 30-year fixed, then you would be able to offset the fees by bumping up your rate by 0.125% or worst case 0.25%.simplesimon wrote: ↑Thu Apr 22, 2021 9:19 am According to Bankrate, LD will want about $3k in fees - haven't tried to get in touch with them to negotiate credits. Also for me to get this rate it looks like I need to go from my super conforming loan to conforming, which would require >$100k paydown...by my math it looks like an ROI of about 4.9% on the $100k hm...
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Re: Refinance Mega Thread
Just as an FYI to anyone who has been following this thread for awhile.
Similar to BrandonBogle, I've done 2 refi's within the last 6 months, profiting each time through lender credits & lowering interest rate each time. Rates have gone down a bit where I am running the numbers for refi #3.
Again, worth it to run your numbers based on:
1. Cash flow for your household budget: Can you support the different cashflow?
2. Opportunity cost if moving from 30yr to 15yr: What would expected return on what the market would return? Do the lender credits beat the market return?
3. How long do you plan to stay in the house?
4. Are you lowering your rate?
Similar to BrandonBogle, I've done 2 refi's within the last 6 months, profiting each time through lender credits & lowering interest rate each time. Rates have gone down a bit where I am running the numbers for refi #3.
Again, worth it to run your numbers based on:
1. Cash flow for your household budget: Can you support the different cashflow?
2. Opportunity cost if moving from 30yr to 15yr: What would expected return on what the market would return? Do the lender credits beat the market return?
3. How long do you plan to stay in the house?
4. Are you lowering your rate?
Re: Refinance Mega Thread -- Closing
I closed this morning on a Chase refinance according to terms described in a post above. It took about 50 days from first estimate. Interestingly, the closing agent was a professional wrestler.
Re: Refinance Mega Thread
Just to follow up here - you are totally right that Zillow Mortgages is a great place to search for large lender credits. I wasn't seeing them before, but you can filter the results by zero points/zero fees and also sort the results by lender fees in ascending order. Then the offers that come out on top are the ones with the biggest lender credit.ZinCO wrote: ↑Mon Apr 19, 2021 4:24 pmLooking specifically at my parameters on Zillow Mortgages, I see HomePlus Corp, AimLoan, BNC National Bank, and Sebonic Financial all offering credits between $3000 and $5600 (10-year term, 2.00% APR). I only have personal experience with Sebonic. FYI Better comes and goes on Zillow Mortgages; they were there a couple weeks ago, but gone now.presto987 wrote: ↑Mon Apr 19, 2021 4:01 pm I've been away from this thread for a couple months. Does anyone have a good sense of which lenders are allowing large lender credits that exceed closing costs?
LC and LD seemed to have closed off this option, at least as of a few months ago. I know Better goes up to $5k lender credit, but not sure if anyone is doing more than that...
I spoke to a couple of lenders that I found here; we'll see if I get a legitimate LE that looks as expected.
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Re: Refinance Mega Thread
I also recommend an IRS Identity Protection PIN.3of10 wrote: ↑Sun Apr 18, 2021 8:18 pmIn addition to placing a freeze for the 4 credit bureaus (Equifax, Experian, Transunion, Innovis?), you should definitely do a freeze for ChexSystems, which handles checking accounts (banks, credit unions,...).skyno wrote: ↑Sat Apr 17, 2021 9:01 pm Slight tangent, but I wanted to share this experience to get the group's take on this and also hopefully this can serve as a heads up for others. After going through this refinance process, in the past couple days I have received a couple of snail mail letters from 2 credit unions informing me about lines of credit applications that I did not apply for (not related to a refi) so they appear to be attempts at identity theft, and unfortunately more detrimental pulls on my credit. Of course, I have no way of knowing if this is in any way related to my refi applications or just a coincidence, but I am suspicious because I transmitted my personal information to several parties when shopping around, and now this is suddenly happening and has never happened before and I am normally extremely careful with my personal information. I am suspicious that maybe it was somehow intercepted or fell in to the hands of a bad actor in this whole refi process.
I will obviously have to deal with this and have calls in to the credit unions and will likely need to freeze my credit or at a minimum put a fraud alert. I wanted to bring this up because I may have been a bit too lax in protecting my information during all of this so a good reminder to be very strict about how you transmit your information, and to whom. I am also curious if others have had any similar experiences, and of course any tips on dealing with this unfortunate situation are welcomed.
Re: Refinance Mega Thread
Currently I am at 1.99% for a 15 year Fixed $400k mortgage. Getting an offer from Better.com for 1.875% Fixed 15 years with $2k lender credit. Loan Estimate has close to $2k for Loan costs just A+B+C . Lender credit for $2k which should take care of the loan costs (there are prepaids for property tax, insurance etc E F G H in loan estimates which I don't consider as deciding factor) .
While I can shop around to get some competing deals, I think this is good? More over I had done refinanced with Better.com earlier and love the
ease of use, response times in which things happen. What is everyone's opinion?
While I can shop around to get some competing deals, I think this is good? More over I had done refinanced with Better.com earlier and love the
ease of use, response times in which things happen. What is everyone's opinion?