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

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StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

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

Post 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.
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anon_investor
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Joined: Mon Jun 03, 2019 1:43 pm

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

Post 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.
Goal33
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Joined: Sun Apr 12, 2015 12:30 pm

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

Post by Goal33 »

I go by price. At the end of the day, your old broker isn’t paying your bills
desiderium
Posts: 970
Joined: Sat Jan 04, 2014 11:08 am

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

Post 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.
wootwoot
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Joined: Tue Jan 27, 2009 7:37 pm

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

Post by wootwoot »

The best broker is the one with the lowest cost.
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