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Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

Posted: Thu Jul 09, 2020 9:22 am
by StevenNJ1
I plan to pull the trigger today and refinance my 30yr mortgage (27 years left to pay) from 3.75% to a 2.75%. Most likely going with 25yr term.

After speaking with multiple brokers, it's interesting that their offers are somewhat similar. Best one I got was to go to 2.75% with $2,500 cost (title, credit report, notary, etc) and 4 months or so upfront escrow (taxes). Others came very close, all at 2.75% but $3,500 instead of $2,500 in closing costs.

My question is ... if they all are so similar, what else do you go by? One broker I already did mortgage with and all went fine but he is about $1,000 more than the other reputable broker.

What else is important that I should be asking when picking the right broker to go with?

Thank you.

P.S. Yes, I plan to be in this house for a long time. I already add extra $500/mo towards principal but feel uncomfortable going into 15yr term so will stick with 25 or 27yr.

Re: Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

Posted: Thu Jul 09, 2020 9:30 am
by anon_investor
Maybe look at trying to get appraisal waived, maybe even escrow waived?

If you like your old broker, see if he can match the other broker's offer.

Re: Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

Posted: Thu Jul 09, 2020 9:34 am
by Goal33
I go by price. At the end of the day, your old broker isn’t paying your bills

Re: Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

Posted: Thu Jul 09, 2020 9:49 am
by desiderium
The source of the capital the broker is accessing is one thing to ask about.

In the heyday of mortgage lending pre-2008, many brokers accessed capital pools expressly set up to originate loans and then sell them. It often happened almost immediately after funding, and there would be a period of confusion regarding who was handling the payments. Loan servicing was often low budget. This was pre-internet so much more difficult to track and verify that everything was being done correctly.

After 2008 I refinanced twice with a broker who worked directly with a medium-sized bank in New York that was acquiring highly creditworthy loans for its own portfolio. The bank contracted with a very reputable loan servicing firm that was easy to work with and reliable. It made a big difference in terms of comfort and confidence.

Re: Picking the Right broker when Refinancing ... going from 3.75% to 2.75%

Posted: Thu Jul 09, 2020 10:08 am
by wootwoot
The best broker is the one with the lowest cost.