Refinance Mega Thread

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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander » Thu May 21, 2020 7:28 am

I spoke with Quicken yesterday and I was very disappointed that the only way for them to give me meaningful information (so they say) is to do a hard pull. Everyone else I spoke with would give me quotes based on an assumed excellent credit score which makes me not trust them, or at least the person I spoke with.

marklar13
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Re: Refinance Mega Thread

Post by marklar13 » Thu May 21, 2020 8:08 am

rascott wrote:
Thu May 21, 2020 1:02 am
For whatever reason, I can't find anything close to 3% $0 cost right now. It's all 3.375+. Prime credit and 60% LTV. Tried most of the names mentioned here. AIM can get me closest, at 2.75 on a no- cost 15 year. But really looking for a 25+ year.

30 years should be in the 2.5% range based upon historical spreads vs the 10 year treasury. But market still messy
Keep shopping around, and I think you will find what you are looking for. Not sure what their actual service area is, but we used Garden State Loans -- and we are located in CT. We were able to lock at 2.75%, 30 year, no points, and about $2400 closing costs (not including escrow/prepaid) on a 360k loan (about 50% LTV). We locked late last week, and I think overall rates have actually gone down since then, so you may even be able to do better. I didn't ask, but we probably could have bumped the rate slightly to make it no cost. They also allowed us to roll costs into the new loan if we wanted.

Process has been very smooth so far. The only thing I wasn't thrilled about was that they couldn't waive the appraisal. The house is new construction, built 3 years ago, so I thought we could get away with no appraisal. It was an "external" only appraisal due to covid, which I guess made it painless on our end, but still set us back $400+ (included in the $2400 closing costs above).

Your expectations seem reasonable given the current conditions -- I would just keep asking around until you get what you want.

sixtoeight
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Re: Refinance Mega Thread

Post by sixtoeight » Thu May 21, 2020 10:13 am

psmoove wrote:
Tue May 19, 2020 4:12 pm
Amhenn01 wrote:
Tue May 19, 2020 3:31 pm
Owning.com is amazing. I went back a forth with Better.com and Owning.com and settled on owning.com for 15 Year 2.5% No Cost, No Escrow account.
I got the same rate and no cost with them and I took that to Better, which beat it by issuing $2,000 in lender credits. So I went with Better, and I am also eligible for the $2,500 Amex promo. But yes, I agree that Owning is great. If it wasn’t for the promo I would’ve proceeded with them.
What is this Amex promo? Can you elaborate?

psmoove
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Re: Refinance Mega Thread

Post by psmoove » Thu May 21, 2020 10:22 am

sixtoeight wrote:
Thu May 21, 2020 10:13 am
psmoove wrote:
Tue May 19, 2020 4:12 pm
Amhenn01 wrote:
Tue May 19, 2020 3:31 pm
Owning.com is amazing. I went back a forth with Better.com and Owning.com and settled on owning.com for 15 Year 2.5% No Cost, No Escrow account.
I got the same rate and no cost with them and I took that to Better, which beat it by issuing $2,000 in lender credits. So I went with Better, and I am also eligible for the $2,500 Amex promo. But yes, I agree that Owning is great. If it wasn’t for the promo I would’ve proceeded with them.
What is this Amex promo? Can you elaborate?
Https://Www.Americanexpress.com/us/camp ... ns/better/

psmoove
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Re: Refinance Mega Thread

Post by psmoove » Thu May 21, 2020 10:26 am

Earlier this month before finding out about the Amex promo and before rates dropped even further I proceeded with a lender by signing e-disclosures. They are now processing the application, verifying employment, etc but I no longer want to move forward with them because their rates and fees are no longer competitive. Do I just tell them at this point that I am no longer interested? I know we don't have a legal obligation with them until the signing of the closing documents but what's the best way to stop the process?

sixtoeight
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Re: Refinance Mega Thread

Post by sixtoeight » Thu May 21, 2020 10:56 am

psmoove wrote:
Thu May 21, 2020 10:22 am
sixtoeight wrote:
Thu May 21, 2020 10:13 am
psmoove wrote:
Tue May 19, 2020 4:12 pm
Amhenn01 wrote:
Tue May 19, 2020 3:31 pm
Owning.com is amazing. I went back a forth with Better.com and Owning.com and settled on owning.com for 15 Year 2.5% No Cost, No Escrow account.
I got the same rate and no cost with them and I took that to Better, which beat it by issuing $2,000 in lender credits. So I went with Better, and I am also eligible for the $2,500 Amex promo. But yes, I agree that Owning is great. If it wasn’t for the promo I would’ve proceeded with them.
What is this Amex promo? Can you elaborate?
Https://Www.Americanexpress.com/us/camp ... ns/better/
Thanks. I just checked Better.com and they don't seem to cover mortgage in the my state of Virginia. Bummer :(

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle » Thu May 21, 2020 11:11 am

psmoove wrote:
Thu May 21, 2020 10:26 am
Earlier this month before finding out about the Amex promo and before rates dropped even further I proceeded with a lender by signing e-disclosures. They are now processing the application, verifying employment, etc but I no longer want to move forward with them because their rates and fees are no longer competitive. Do I just tell them at this point that I am no longer interested? I know we don't have a legal obligation with them until the signing of the closing documents but what's the best way to stop the process?
Yes, tell them to withdraw the application and move on. Technically, you could just leave them hanging, but you may end up with some third party charges that they order (like an appraisal), so best to cancel if you are sure you won’t move forward with them.

hotelcalifornia
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Re: Refinance Mega Thread

Post by hotelcalifornia » Thu May 21, 2020 12:44 pm

Just spoke with Amerisave. I’m in TX with 800+ credit. Best offer on 15 year fixed was 3.25% with 1 point...

d0gerz
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Re: Refinance Mega Thread

Post by d0gerz » Thu May 21, 2020 1:00 pm

Closed end of last month on 3.25% 30-yr no-cost refinance. Loan amount $350k, LTV 79%. State is MA.

br0nd
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Re: Refinance Mega Thread

Post by br0nd » Thu May 21, 2020 3:11 pm

davehica wrote:
Wed May 20, 2020 7:25 pm
BrandonBogle wrote:
Wed May 20, 2020 7:21 pm
Goal33 wrote:
Wed May 20, 2020 7:07 pm
br0nd wrote:
Wed May 20, 2020 6:09 pm
br0nd wrote:
Wed May 13, 2020 2:28 pm
I just wanted to share an amazing rate I just locked.
Apparently UWM has new insane pricing.. I just locked in a 30 year conventional loan for 2.875%.
And its better than no cost - covering all costs plus also $1,000 of my escrow payment.

This is in AZ. I would suggest finding a broker that works with UWM in your area and getting a quote right now!
Update on my end - UWM has my loan through underwriting and its scheduled to close on Tuesday 5/26..However , Chase just offered me a rate adjustment to 3% without needing a refi.
So here are my two options.. any advice on how to weigh these options..
Option 1 - New lower mortgage rate
Principal - $532K
Interest Rate - 3% (currently 3.5%)
Term - 313 months left (original 30 year)

Option 2 UWM Refi to conventional Loan
Principal - $510K
Interest Rate - 2.875%
Term - 30 years
Closing Costs (ignoring prepaids and escrow) - Credit of $1147
Cash to pay down mortgage to conventional - $22,408
So actual cost = 22408 - 1147 = $21,261

Summary
Is it worth paying down my balance by $21,261 to lower my interest rate by 0.125% (from 3% to 2.875%)? I am leaning towards just being happy with the Chase 3% rate adjustment and not closing on my UWM loan.
Appreciate any insight into doing the math here..
I’d stick with chase unless that money is just sitting in your checking. Chase might lower your rate again later! I do wonder if you can ask them to do better.
I concur. Especially given the pay down needed, I would just stick with the Chase loan. You can invest the $22k (or pay down your principal anyways). Or, see if the UWM broker beats Chase's offer, but you may not get traction there since, outside of the rate modification you are being offered, they are offering a competitive loan.
+1.

Except I would also call chase, say you’re about to close at 2.875% and that you’ll immediately sign with them if they can match that rate.
Thanks for all the input. I did call Chase and they can't do any better than the 3% rate reduction, however UWM tried to sweeten the deal by lowering my origination by $1,000, so still comes down to paying down my mortgage by about $20K to refi from my 3% jumbo loan to a 2.875% conventional loan. I still think I will stick with my original Chase loan, but I guess its a win-win situation both ways.

BruDude
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Re: Refinance Mega Thread

Post by BruDude » Thu May 21, 2020 3:22 pm

I applied for a 15-year refi yesterday. Have been holding off for a 2.5% rate so that I could refi around 2.75-3.0% with no out of pocket cost. The stated rate from the credit union was 2.75% with 0 points, but if I took 2.875%, they'd give me a $2700 lender credit. That seems like a huge credit for a .125% bump in rate compared to what I have seen elsewhere as other banks wanted more like 0.5% bump to cover closing costs. So, I have an app pending at 2.875% with closing costs of approx $1700-2200 ($1700 if appraisal waived, which it should be) and will get $2700 back to cover those costs. 3.125% was a $3700 credit by comparison, so I guess 2.875 was the sweet spot.

This was with OneNevada Credit Union, so you do have to be an NV resident for this one.

JBTX
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Re: Refinance Mega Thread

Post by JBTX » Thu May 21, 2020 3:40 pm

BrandonBogle wrote:
Wed May 20, 2020 7:19 pm
JBTX wrote:
Wed May 20, 2020 6:56 pm
We currently are at 3.25% with around $150k. In TX hard to get math to work with such heavy refi fees. Quicken loans was 2.75%, half point, and around $4000 of closing fees. Would take over 5 years to breakeven. I just tried better online and best rate was 2.75%, with about 2 points plus closing fees. The amex credit would mostly offset the points but still have closing fees. Better turned out to be about the same as quicken loans.
Send Better your Quicken LE for them to match the lower point. They may even beat it by $1k. Then the Amex offer stacks on top of that.
Talked to Better today. Basically what they came up with was about the same as quicken loans. 2.75% and $5000 of fees. The only way they go lower is if I can find a lower documented quote and forward to them. At this point I'm not inclined to go fishing for a lower written quote. Quicken wasn't really lower, and they did not send a written quote. I asked QL if they would send quote last time and they said they don't do that because info changes daily.

new2bogle
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Re: Refinance Mega Thread

Post by new2bogle » Thu May 21, 2020 4:49 pm

Soares1234 wrote:
Wed May 20, 2020 1:05 pm
alfaspider wrote:
Mon May 18, 2020 4:15 pm
new2bogle wrote:
Mon May 18, 2020 3:50 pm
Has anyone refinanced in Texas? I am not able to find these sub-3% rates without points (and forget no-fee refinance).

I'm wondering what my Texas neighbors are finding.
Not had good luck myself with Jumbos. Best I got back in March was 3.5% with ~$3k in closing costs on a 30 year jumbo. Current is at 3.75, so I decided to wait. More recently, I'm seeing 4%+ quoted.
Try consumer direct mortgage!
Fantastic! Thank you.

I've never heard of them - are they good/trustworthy?

Absolute
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Re: Refinance Mega Thread

Post by Absolute » Thu May 21, 2020 5:07 pm

psmoove wrote:
Wed May 20, 2020 10:28 pm
Absolute wrote:
Wed May 20, 2020 7:10 pm
Absolute wrote:
Thu May 07, 2020 10:01 pm
Hey everyone,

Would like some insight from the BH community on the below refinance proprosal.

Details of proposed loan:
Current rate: 4.366%, 30 year, 56 months in.
Credit Score: ~770 (middle score)
Value: $270,000
Mortgage Balance: $198,000
20 year locked: 3.25 (no points)
Lender Credit: -$400 (appraisal waived)
Origination: $1290
Title (Shoppable Fees): $1,910
Taxes/Prepaid/Escrow: $3,371
Total Closing Costs: $6,640
Total Cash to Close: $7,389

Costs seem higher than what I've seen from other posts. How about the below breakdown of title fees.

Title - Closing Protection Letter $75
Title - Courier Fee $70
Title - Document Storage Archive Copies $90
Title - Lender's Endorsements $100
Title - Lender's Title Insurance $550
Title - Municipal Search $70
Title - Notary Fee $25
Title - Recording Service Fee $50
Title - Release Prep Fee $75
Title - Settlement Fee $425
Title - Tideland Search $50
Title - Title Examination $100
Title - Title Search Abstract $100

This adds $10 to the monthly payment and shaves ~5 years where I can also start adding to principal monthly with flexibility. Any advice? Costs seem high as I mentioned. I understand the taxes/escrow/prepaid are just moving money around.

Cheers :sharebeer
Update: I shopped around for title services, received a few quotes and sent them the lowest cost. They beat it and I ended up saving ~$500 on the title costs. Looks like I'll be going from 4.33% 25 years left on 30 year conventional to a 3.25% 20 year conventional with $2,800 out of pocket. New Jersey.
Did you ask Better for a detailed breakdown of Section C on the LE (title services)? And you sent them a competing quote? I am shopping around myself for title services and I got a couple of itemized breakdowns. I am in the Approval Process. What step were you in when you sent them the lowest quote? Thanks.
Not working with Better. GRA in NJ. I sent them the lowest quote after underwriting actually, but you can shop for it anytime essentially by providing very basic information to the title companies. I would send the lowest quote to your proposed lender right after receiving their LE which should have the title services itemized for their "preferred" title company. Unless of course their preferred title company comes in lowest which I doubt is ever the case. A quick Google search of local title companies, a few emails with my information and I had all quotes by the next day. Each one was a few hundred lower than the preferred title company.

Don't hesitate to ask questions and shop for services that can be shopped for. $100 is $100..

Cheers

byenare
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Re: Refinance Mega Thread

Post by byenare » Thu May 21, 2020 5:55 pm

Any lender is giving less 3 percent in California? 400k loan value. Interested in 30 years fixed mortgage.

psmoove
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Re: Refinance Mega Thread

Post by psmoove » Thu May 21, 2020 6:59 pm

byenare wrote:
Thu May 21, 2020 5:55 pm
Any lender is giving less 3 percent in California? 400k loan value. Interested in 30 years fixed mortgage.
2.99% at Owning.com, no closing costs

DeadLoad
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Re: Refinance Mega Thread

Post by DeadLoad » Thu May 21, 2020 7:29 pm

byenare wrote:
Thu May 21, 2020 5:55 pm
Any lender is giving less 3 percent in California? 400k loan value. Interested in 30 years fixed mortgage.
Yes, closing 6/5/2020 on a 30 yr @ 2.99% $252k loan with a home value of $425k through UWM Conquest Program in NorCal

pfl5001
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Re: Refinance Mega Thread

Post by pfl5001 » Thu May 21, 2020 8:15 pm

I’ve been following the thread and it’s been helpful following the rates people are getting. Just locked in a 2.625 15 year. I’m in CA with about 450k left in case that helps.

byenare
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Re: Refinance Mega Thread

Post by byenare » Thu May 21, 2020 9:47 pm

Check this site: https://interactivemortgage.com/
They are giving 2.5 for 15 years. No closing costs

byenare
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Re: Refinance Mega Thread

Post by byenare » Thu May 21, 2020 9:48 pm

Looking for 2.75 with no closing costs - for 30 year
psmoove wrote:
Thu May 21, 2020 6:59 pm
byenare wrote:
Thu May 21, 2020 5:55 pm
Any lender is giving less 3 percent in California? 400k loan value. Interested in 30 years fixed mortgage.
2.99% at Owning.com, no closing costs

batpot
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Re: Refinance Mega Thread

Post by batpot » Thu May 21, 2020 10:27 pm

Just today:
2.75%, 30 year fixed, 0.675 points (really 1.05 after all the doc/title fees, etc); but nothing out of pocket to close.
Was working with another company, and up to the point of signing final documents when this popped up :greedy

mt2k
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Re: Refinance Mega Thread

Post by mt2k » Thu May 21, 2020 11:03 pm

Locked in 2.99%, 30 yrs, no closing cost, no escrow. Prepaids I have to pay.
Loan amount: $370K, 70% LTV

byenare
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Re: Refinance Mega Thread

Post by byenare » Thu May 21, 2020 11:44 pm

How does this actually works when you say nothing out of pocket to close? Who will bear the refinancing cost?
But that is very good deal. Is it in California?
batpot wrote:
Thu May 21, 2020 10:27 pm
Just today:
2.75%, 30 year fixed, 0.675 points (really 1.05 after all the doc/title fees, etc); but nothing out of pocket to close.
Was working with another company, and up to the point of signing final documents when this popped up :greedy

Goal33
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Re: Refinance Mega Thread

Post by Goal33 » Fri May 22, 2020 12:16 am

Anybody getting these sub 3 rates on a jumbo? Or even the high value conforming at 765k?
A man with one watch always knows what time it is; a man with two watches is never sure.

goofusdoofus
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Re: Refinance Mega Thread

Post by goofusdoofus » Fri May 22, 2020 12:55 am

byenare wrote:
Thu May 21, 2020 9:47 pm
Check this site: https://interactivemortgage.com/
They are giving 2.5 for 15 years. No closing costs
Looked interesting, but the BBB reviews for them are pretty bad:
https://www.bbb.org/us/ca/orange/profil ... er-reviews
I'd stay away...

happygilmore
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Re: Refinance Mega Thread

Post by happygilmore » Fri May 22, 2020 7:10 am

byenare wrote:
Thu May 21, 2020 11:44 pm
How does this actually works when you say nothing out of pocket to close? Who will bear the refinancing cost?
But that is very good deal. Is it in California?
batpot wrote:
Thu May 21, 2020 10:27 pm
Just today:
2.75%, 30 year fixed, 0.675 points (really 1.05 after all the doc/title fees, etc); but nothing out of pocket to close.
Was working with another company, and up to the point of signing final documents when this popped up :greedy

I assume the costs were rolled into the new loan

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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander » Fri May 22, 2020 7:30 am

I'm disappointed to report that my prior offer ($510K VA loan @ 2.75% with $8.2K lender credits) was a bust. The loan officer inputted a $4.5 million (!!!) loan instead of a $510K loan.

Back to the drawing board I guess. At this point, I need something close to a no cost refi in VA for this to make financial sense due to having to already bring cash to the table to get my loan below the conforming limit.

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle » Fri May 22, 2020 8:51 am

Cobra Commander wrote:
Fri May 22, 2020 7:30 am
I'm disappointed to report that my prior offer ($510K VA loan @ 2.75% with $8.2K lender credits) was a bust. The loan officer inputted a $4.5 million (!!!) loan instead of a $510K loan.

Back to the drawing board I guess. At this point, I need something close to a no cost refi in VA for this to make financial sense due to having to already bring cash to the table to get my loan below the conforming limit.
Sorry to hear that Cobra. That is quite the oversight on the loan officers part. I’m glad at least you caught this early on in the process.

darkhorse
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Re: Refinance Mega Thread

Post by darkhorse » Fri May 22, 2020 8:56 am

byenare wrote:
Thu May 21, 2020 9:48 pm
Looking for 2.75 with no closing costs - for 30 year
psmoove wrote:
Thu May 21, 2020 6:59 pm
byenare wrote:
Thu May 21, 2020 5:55 pm
Any lender is giving less 3 percent in California? 400k loan value. Interested in 30 years fixed mortgage.
2.99% at Owning.com, no closing costs
Can you please share more info on lender, state and LTV thanks

darkhorse
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Re: Refinance Mega Thread

Post by darkhorse » Fri May 22, 2020 8:57 am

Cobra Commander wrote:
Fri May 22, 2020 7:30 am
I'm disappointed to report that my prior offer ($510K VA loan @ 2.75% with $8.2K lender credits) was a bust. The loan officer inputted a $4.5 million (!!!) loan instead of a $510K loan.

Back to the drawing board I guess. At this point, I need something close to a no cost refi in VA for this to make financial sense due to having to already bring cash to the table to get my loan below the conforming limit.
Ah! Sorry to hear that.

jb1
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Re: Refinance Mega Thread

Post by jb1 » Fri May 22, 2020 10:38 am

Mind is blown at all of you getting these rates.

In 2018 with 800 credit for a 180k loan I got a rate of 4.75%

Now I go to refinance and everything is 4k closing costs at least on a 165k loan at 3.25%

This is stressful and part of me doesnt even want to bother doing it.

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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander » Fri May 22, 2020 10:41 am

jb1 wrote:
Fri May 22, 2020 10:38 am
Mind is blown at all of you getting these rates.

In 2018 with 800 credit for a 180k loan I got a rate of 4.75%

Now I go to refinance and everything is 4k closing costs at least on a 165k loan at 3.25%

This is stressful and part of me doesnt even want to bother doing it.
It's probably because your loan is relatively small. If you get a 1.5% interest reduction you would break even in approximately 2 years so up to you to decide if that's worth it.

jb1
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Re: Refinance Mega Thread

Post by jb1 » Fri May 22, 2020 10:42 am

Cobra Commander wrote:
Fri May 22, 2020 10:41 am
jb1 wrote:
Fri May 22, 2020 10:38 am
Mind is blown at all of you getting these rates.

In 2018 with 800 credit for a 180k loan I got a rate of 4.75%

Now I go to refinance and everything is 4k closing costs at least on a 165k loan at 3.25%

This is stressful and part of me doesnt even want to bother doing it.
It's probably because your loan is relatively small. If you get a 1.5% interest reduction you would break even in approximately 2 years so up to you to decide if that's worth it.
Im just being a baby about it haha. I know deep down I should. Its just overwhelming when I have 4 different places call me.

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle » Fri May 22, 2020 10:55 am

jb1 wrote:
Fri May 22, 2020 10:38 am
Mind is blown at all of you getting these rates.

In 2018 with 800 credit for a 180k loan I got a rate of 4.75%

Now I go to refinance and everything is 4k closing costs at least on a 165k loan at 3.25%

This is stressful and part of me doesnt even want to bother doing it.
When I was shopping around for a similarly sized refi, I found that credit unions were more competitive for me than direct lenders (on rates) or brokers (on closing costs). Thankfully, Better Mortgage offers to try and beat other offers, so I sent them my credit union offer with a competitive rate (back in the end of April at least) and competitive closing costs. All told, I ended up with a 0.25% lower interest rate than the credit union and with no closing costs to boot.

Note, this was on a 15-year mortgage, but the same should apply with simply a higher rate on a 30-year mortgage. Happy hunting!

ChrisB
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Re: Refinance Mega Thread

Post by ChrisB » Fri May 22, 2020 12:16 pm

Looking to refinance and have been reading through this thread. Feel like all the great offers have kind of ruined me! How are you all finding these!?! I'm impressed! I have been only half effort shopping around and now that I have some time I am diving in to shopping around for actual offers.

Currently looking for a cash out refinance to fund some needed home upgrades. Currently at 4.25% refinanced in 2012. Owe $140,000 and looking for
additional $50,000 cash out. Home value ~$550,000. Credit score ~800.

EDITED to add I am located in Portland, Oregon.

When I inquire should I ideally be asking for a "No Cost, cash out refinance that does not roll any costs into the loan"? Is this unrealistic for what I am looking for? With cash out and requesting no cost will I be able to get a rate that would make refinancing worth it?

One initial online estimates I am seeing through AimLoan includes the following:
30-Year Fixed Rate
3.625% Rate / 3.694% APR
Guaranteed Lender Fees/(Credits) ($561)
Guaranteed Lender Fee $995
Guaranteed Lender Credit 0.819% ($1,556)
3rd Party Services We Select $696
Guaranteed Appraisal Fee $578
Guaranteed Credit Report Fee $49
Guaranteed Flood Cert Fee $5
Guaranteed Tax Service Fee $64
3rd Party Services You May Select $1,890
Title - ALTA 9 (REM) $100
Title - Lender's Title Insurance $1,235
Title - Settlement Fee $555
Recording Fees $254
Total Lender & 3rd Party Costs $2,279
Appreciate any thoughts and advice.

byenare
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Re: Refinance Mega Thread

Post by byenare » Fri May 22, 2020 2:01 pm

Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.

bluebolt
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Re: Refinance Mega Thread

Post by bluebolt » Fri May 22, 2020 2:13 pm

byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
Of the $10K closing costs in #1, how much are the loan costs and how much are the prepaids (interest, taxes, insurance, etc)? I'd be surprised if the broker was planning to credit the prepaids. You should clarify.

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BrandonBogle
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Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle » Fri May 22, 2020 2:16 pm

byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
While it is entirely possible that #1 is on the up-and-up, unless they are willing to give you something in writing (not just an email saying so) that they will provide credits to cover $10k of closing costs, then I wouldn't stress out over that last 1/8th of a percent and go with what lets you rest easy. If the broker isn't charging any fees up front, you could get the initial application in and get a doc disclosure package and see if that broker paying for the closing costs is in there. If not, then I'd walk as those are the disclosures you are signing/agreeing to. If the broker charges a fee to get that far along in the process (not usual, but happens), then I wouldn't pursue it.

Also, since you have the estimate for option 2, you can shop that with another broker to beat it. Hopefully that would include lender credits (or a better rate) right up front to show it's a better deal than either of the above.
Last edited by BrandonBogle on Fri May 22, 2020 2:17 pm, edited 2 times in total.

frankandbeans
Posts: 131
Joined: Wed Feb 06, 2019 10:55 am

Re: Refinance Mega Thread

Post by frankandbeans » Fri May 22, 2020 2:17 pm

byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
I would be extremely wary of a broker promising credits that he won't list in the LE.

2quiker
Posts: 16
Joined: Sun May 10, 2020 12:39 pm

Re: Refinance Mega Thread

Post by 2quiker » Fri May 22, 2020 3:01 pm

byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
From where?

byenare
Posts: 11
Joined: Mon May 18, 2020 4:46 pm

Re: Refinance Mega Thread

Post by byenare » Fri May 22, 2020 3:38 pm

Per Initial LE, Estimated Closing Costs: $10,764
Includes $9,424 in Loan Costs + $1,340 in Other Costs - $0
in Lender Credits. See page 2 for details

bluebolt wrote:
Fri May 22, 2020 2:13 pm
byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
Of the $10K closing costs in #1, how much are the loan costs and how much are the prepaids (interest, taxes, insurance, etc)? I'd be surprised if the broker was planning to credit the prepaids. You should clarify.

byenare
Posts: 11
Joined: Mon May 18, 2020 4:46 pm

Re: Refinance Mega Thread

Post by byenare » Fri May 22, 2020 3:44 pm

Email says: All fees shown are for compliance purpose only and your refinance will close with no point no fee.

No upfront fees from the broker.
BrandonBogle wrote:
Fri May 22, 2020 2:16 pm
byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
While it is entirely possible that #1 is on the up-and-up, unless they are willing to give you something in writing (not just an email saying so) that they will provide credits to cover $10k of closing costs, then I wouldn't stress out over that last 1/8th of a percent and go with what lets you rest easy. If the broker isn't charging any fees up front, you could get the initial application in and get a doc disclosure package and see if that broker paying for the closing costs is in there. If not, then I'd walk as those are the disclosures you are signing/agreeing to. If the broker charges a fee to get that far along in the process (not usual, but happens), then I wouldn't pursue it.

Also, since you have the estimate for option 2, you can shop that with another broker to beat it. Hopefully that would include lender credits (or a better rate) right up front to show it's a better deal than either of the above.

byenare
Posts: 11
Joined: Mon May 18, 2020 4:46 pm

Re: Refinance Mega Thread

Post by byenare » Fri May 22, 2020 3:46 pm

2nd Option is from owning.com
2quiker wrote:
Fri May 22, 2020 3:01 pm
byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
From where?

User avatar
BrandonBogle
Posts: 2414
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle » Fri May 22, 2020 4:05 pm

byenare wrote:
Fri May 22, 2020 3:44 pm
Email says: All fees shown are for compliance purpose only and your refinance will close with no point no fee.
That looks better. My credit union has a refinancing option for $1,295 flat. The estimator on the website will list all the fees for compliance purposes, but the LE itself will have the lender credit to bring the total to $1,295. It is odd to see it this way.

Just one thing to keep in find that “no point no fee” doesn’t necessarily mean “no closing costs”. It could mean no points and no lender fees, such as origination costs. You would still have the title services and settlement fees, recording fees, etc. But since there are no upfront fees, it doesn’t hurt to pursue both the broker and Owning.com.

Out of curiosity, did you try applying with Better and having them best Owning’s offer? I know a couple people have. If you have an Amex card, you can apply using the promo for an extra $2,500 back (from Amex, not Better).

darkhorse
Posts: 146
Joined: Mon Dec 17, 2012 4:13 pm

Re: Refinance Mega Thread

Post by darkhorse » Fri May 22, 2020 6:41 pm

byenare wrote:
Fri May 22, 2020 3:46 pm
2nd Option is from owning.com
2quiker wrote:
Fri May 22, 2020 3:01 pm
byenare wrote:
Fri May 22, 2020 2:01 pm
Here is the scenario:
1) 30 Year fixed. 2.875 interest rate, 3.03 APR ( almost 10k closing costs). But broker says, He will provide the credits to cover entire cost at the time of closing, so it will be a zero closing cost loan and will become like a 2.875 rate and APR.
2) 30 Year Fixed. 2.99 rate and APR. zero closing costs.

In case 1, I would be saving around 30 dollar every month based on my loan amount. But I'm not sure anything hidden costs involved with this option.
I'm not seeing any costs rolled over into the principle amount as per initial loan estimate. But still something is fishy in option 1, as the broker is not giving the credits to begin with in initial loan estimate.

Which one would you prefer in those 2 options? Thank you all for inputs and taking me in right direction.
From where?
Where's the first option from. Thanks

manatee2005
Posts: 695
Joined: Wed Dec 18, 2019 9:17 pm

Re: Refinance Mega Thread

Post by manatee2005 » Sat May 23, 2020 3:18 am

pfl5001 wrote:
Thu May 21, 2020 8:15 pm
I’ve been following the thread and it’s been helpful following the rates people are getting. Just locked in a 2.625 15 year. I’m in CA with about 450k left in case that helps.
Owning.com I presume? Isn't payment about 3100/month on that while 30 year payment would be 2000/month?

Carl53
Posts: 1921
Joined: Sun Mar 07, 2010 8:26 pm

Re: Refinance Mega Thread

Post by Carl53 » Sat May 23, 2020 6:09 am

BrandonBogle wrote:
Wed May 20, 2020 11:53 am
Gigante wrote:
Wed May 20, 2020 11:00 am
Carl53 wrote:
Wed May 20, 2020 5:13 am
Son ended up going with LenderFI on a 30 year refinance. Better told him that they would not give the AMEX credit to him despite having an otherwise eligible AMEX card.
Did they state why they wouldn't be able to give him the $2.5k Better credit? Did he not apply through the link originally? Otherwise it doesn't seem like there are really many restrictions on it that would exclude someone as long as they have an eligible card and apply via the link.
One requirement is that is it only available to the primary account holder. Perhaps Carl's son is just an additional user on the Amex card account.
He never got what he deemed an acceptable answer as he was told that it was just being offered to some Amex customers. BTW, he had Blue Cash card and is the only name on the account. Both he and spouse have high credit scores.

riskcalculated2
Posts: 4
Joined: Tue May 05, 2020 12:44 pm

Re: Refinance Mega Thread

Post by riskcalculated2 » Sat May 23, 2020 8:25 am

Helpful thread. I see a lot of people quoting what seems like their FICO8 scores? Has anyone found or used lenders that use FICO8 or newer FICO instead of FICO2?

gtg970g
Posts: 150
Joined: Tue Mar 27, 2012 11:52 am

Re: Refinance Mega Thread

Post by gtg970g » Sat May 23, 2020 10:08 am

thedane wrote:
Tue May 19, 2020 11:15 am
Need some tips/guidance here please:
I am on a 30 year fixed at 3.5%. Loan dates back to 2012. Was a refinance on the original loan from 2010. So I "lost" 2 years. But it was well worth it! Balance is around $130K. Home value is around $350K. Excellent credit score. AZ based.

Goals:
  • I don't want to pay any fees/points/closing costs. Nothing out of pocket.
  • I want lower monthly cost than today
  • I will be in this house for a while, not planning to sell anytime soon
  • I like the flexibility of a low monthly payment
Questions:
  • Should I go for a 20 year fixed? I'd hate to "push back" the loan further by going for another 30 year. I've never really heard much of 20 year loans before. Thoughts?
  • Any good mortgage brokers to work with?
I'm curious if you've had any luck finding a lender. We contacted owning.com but they say their rate would be close to 5% because our balance is so low. Our balance is 155k on a 380k house. Have you (or anyone else) run into this issue? I also wonder if they are just trying to get me to do a cash out refi.

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BrandonBogle
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Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle » Sat May 23, 2020 10:22 am

gtg970g wrote:
Sat May 23, 2020 10:08 am
I'm curious if you've had any luck finding a lender. We contacted owning.com but they say their rate would be close to 5% because our balance is so low. Our balance is 155k on a 380k house. Have you (or anyone else) run into this issue? I also wonder if they are just trying to get me to do a cash out refi.
Many lenders don’t like to write loans under $200k. For instance, Owning won’t do no closing cost under that (https://www.owning.com/disclosure#noClosingCosts). When I shopped around, I couldn’t find deals anywhere near what folks were reporting. When I began punching in $200k+ into the rate checkers, suddenly things improved significantly. Presumably, it takes about the same amount of work for the lender to originate a loan and they feel under $200k isn’t worthwhile, so they sour the deal. Credit unions generally don’t penalize lower loans amounts (though may still have a lower limit).

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