Refinance Mega Thread

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m7a8a6
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Re: Refinance Mega Thread

Post by m7a8a6 »

PharmerBrown wrote: Mon Aug 17, 2020 9:56 pm
m7a8a6 wrote: Mon Aug 17, 2020 8:38 pm Hello everyone. First post from a long time novice lurking and sucking up all the wisdom from everyone(thank you). I couldn’t help but finally create an account because I’m just failing at making progress on this one.

I’m surprised at how everyone is able to get such low interest rates. I’m not able to find any refinance offers with no cost..or even low cost for my refinance goals. Loan officers told me straight up there are no offerings that are going to be net low or no cost.

I have excellent credit (815+), steady FT employment, 250k/30 yr loan at 4.5% in NJ.

Better - 3.0% at 7k in closing
Aimloan - 3.0% at 5.5k in closing
LD - 3.0% at 5k in closing
Ran through credible, lending tree, rocket mortgage but all had high costs.

I’m definitely doing something wrong. What’s the best strategy to achieve getting lenders to offer no cost?
How much of those closing costs are going toward your escrow?
Hi,
I just realized I entered better.com number incorrectly.

Better - A+B+C - $4430, E - $340, F - $2236, G - $1448 - Total - $8454
Aimloan - A+B+C - $2712, E - $230, F - $308, G - $1925 - Total - $5175
LD - They only gave me an overall number of $5k over the phone. No breakdown.
3of10
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Re: Refinance Mega Thread

Post by 3of10 »

BrandonBogle wrote: Mon Aug 17, 2020 1:48 pm Also, let’s not forget that for errors the other way, a lender is not allowed to charge more in transfer tax than they had on the LE. So if RGB should have been charged $1,400 in transfer tax, the lender neglecting to include on the LE is bound to eat the cost.
Good point. Here is another situation that involves the "transfer tax". In helping a relative, he ended up with a LE from lender1 that had a transfer tax of $4K. It should have been zero for his location. Lender1 was told about it, but was slow in having it corrected. In the meantime he submitted lender1's LE to Loan Depot who he already had an LE from.

LD refused to beat the LE due to Lender1's total cost (that included the $4K transfer tax) being larger than the original LD LE's total cost. Nevermind the fact that LD's LE had a transfer tax of $1.5K, which was also incorrect.

The moral of this story is to know in advance what your transfer tax is, so that if you receive a LE with the wrong transfer tax amount, it can be corrected right away in order for that LE to be accurate when sent to another lender.
"You don't stop playing because you're old. You're old because you've stopped playing"
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Ryzen wrote: Tue Aug 18, 2020 9:47 am I think it is a misunderstanding. If they are locked, I don't see what Watermark can do except bully customers into letting the lock expire? Regardless, people who aren't locked are going to pay.

These online lenders run on razor thin margins, they are taking a hit from this for sure.
Agreed. Watermark will pay an extra 0.5% to insure/sell the loan, but it cannot pass that to customers with an active rate lock, unless the rate lock expires. Anyone not locked in has had their offer of X rate for Y points/lender credits adjusted already.
tbone555
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Re: Refinance Mega Thread

Post by tbone555 »

Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

BrandonBogle wrote: Tue Aug 18, 2020 12:02 pm
Ryzen wrote: Tue Aug 18, 2020 9:47 am I think it is a misunderstanding. If they are locked, I don't see what Watermark can do except bully customers into letting the lock expire? Regardless, people who aren't locked are going to pay.

These online lenders run on razor thin margins, they are taking a hit from this for sure.
Agreed. Watermark will pay an extra 0.5% to insure/sell the loan, but it cannot pass that to customers with an active rate lock, unless the rate lock expires. Anyone not locked in has had their offer of X rate for Y points/lender credits adjusted already.
Pure speculation, but the fact that WM is ghosting everyone who supposedly have a rate lock seems extremely suspicious, as if they are trying to delay things long enough for those juicy locked rates to expire...
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

anon_investor wrote: Tue Aug 18, 2020 12:39 pm
BrandonBogle wrote: Tue Aug 18, 2020 12:02 pm
Ryzen wrote: Tue Aug 18, 2020 9:47 am I think it is a misunderstanding. If they are locked, I don't see what Watermark can do except bully customers into letting the lock expire? Regardless, people who aren't locked are going to pay.

These online lenders run on razor thin margins, they are taking a hit from this for sure.
Agreed. Watermark will pay an extra 0.5% to insure/sell the loan, but it cannot pass that to customers with an active rate lock, unless the rate lock expires. Anyone not locked in has had their offer of X rate for Y points/lender credits adjusted already.
Pure speculation, but the fact that WM is ghosting everyone who supposedly have a rate lock seems extremely suspicious, as if they are trying to delay things long enough for those juicy locked rates to expire...
Perhaps, but this isn’t a new behavior for them. They behaved the same way in May, June, and July.
3of10
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Re: Refinance Mega Threadve

Post by 3of10 »

teCh0010 wrote: Tue Aug 18, 2020 7:44 am
yatesd wrote: Tue Aug 18, 2020 4:13 am
m7a8a6 wrote: Mon Aug 17, 2020 8:38 pm Hello everyone. First post from a long time novice lurking and sucking up all the wisdom from everyone(thank you). I couldn’t help but finally create an account because I’m just failing at making progress on this one.

I’m surprised at how everyone is able to get such low interest rates. I’m not able to find any refinance offers with no cost..or even low cost for my refinance goals. Loan officers told me straight up there are no offerings that are going to be net low or no cost.

I have excellent credit (815+), steady FT employment, 250k/30 yr loan at 4.5% in NJ.

Better - 3.0% at 7k in closing
Aimloan - 3.0% at 5.5k in closing
LD - 3.0% at 5k in closing
Ran through credible, lending tree, rocket mortgage but all had high costs.

I’m definitely doing something wrong. What’s the best strategy to achieve getting lenders to offer no cost?
Welcome to Bogleheads! Please provide a breakdown so we can understand your offer. Also, make sure you are focusing on "cost" of loan & related fees (title insurance, doc fees), versus interest overlap and escrow that will be variable, paid up front, with much of this rebated with any overpayment by the previous lender.
Your loan amount impacts your rates. When I played with the Costco calculator I put in 270k and 330k, got a lower rate on 330k. At 250k you may not get quite as good a rate as some other people.
+1. M7a8a6, in addition to what the others have posted, it would help if you update with the LTV. That is just as important as your credit score in getting the best rate.
"You don't stop playing because you're old. You're old because you've stopped playing"
nic3456
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Re: Refinance Mega Thread

Post by nic3456 »

Has anyone done a cashout refi with Loan Cabin (or even got a LE)? I'm wondering if their calculator on the webpage is working because I haven't got another lender to come with 50 basis points of what LC website says (2.375% with ~$1K in costs)

I'm guessing I'm at least 7-10 days away from LC getting to my app date.
GRAZ
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Re: Refinance Mega Thread

Post by GRAZ »

tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
tbone555
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Re: Refinance Mega Thread

Post by tbone555 »

GRAZ wrote: Tue Aug 18, 2020 1:54 pm
tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
My apologies. I closed on July 22 not June 22.

My bad.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

tbone555 wrote: Tue Aug 18, 2020 1:58 pm
GRAZ wrote: Tue Aug 18, 2020 1:54 pm
tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
My apologies. I closed on July 22 not June 22.

My bad.
I closed on July 14th. Still waiting
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

BrandonBogle wrote: Tue Aug 18, 2020 12:47 pm
anon_investor wrote: Tue Aug 18, 2020 12:39 pm
BrandonBogle wrote: Tue Aug 18, 2020 12:02 pm
Ryzen wrote: Tue Aug 18, 2020 9:47 am I think it is a misunderstanding. If they are locked, I don't see what Watermark can do except bully customers into letting the lock expire? Regardless, people who aren't locked are going to pay.

These online lenders run on razor thin margins, they are taking a hit from this for sure.
Agreed. Watermark will pay an extra 0.5% to insure/sell the loan, but it cannot pass that to customers with an active rate lock, unless the rate lock expires. Anyone not locked in has had their offer of X rate for Y points/lender credits adjusted already.
Pure speculation, but the fact that WM is ghosting everyone who supposedly have a rate lock seems extremely suspicious, as if they are trying to delay things long enough for those juicy locked rates to expire...
Perhaps, but this isn’t a new behavior for them. They behaved the same way in May, June, and July.
I'd think everybody is rushing to close faster... by EOM
jjhk121
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Re: Refinance Mega Thread

Post by jjhk121 »

Owning has some weird looking rates today. I assume this is because of the new Fannie/Freddie fee. Good news is that their 30yr fixed rates have actually done down from where they were the past few days.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

jjhk121 wrote: Tue Aug 18, 2020 2:41 pm Owning has some weird looking rates today. I assume this is because of the new Fannie/Freddie fee. Good news is that their 30yr fixed rates have actually done down from where they were the past few days.
I can't remember exactly but it looks like they went to APR and also changed from "no closing costs" to "no muss, no fuss" ... marketing :wink:
kryptonic
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Re: Refinance Mega Thread

Post by kryptonic »

Refinanced through Better.com. Signed closing documents on July 24th, AMEX credit arrived on August 14th.

I did not get a targeted offer to my knowledge, just signed up with better.com through the promotion link.
Semaphore
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Re: Refinance Mega Thread

Post by Semaphore »

MeAPhool wrote: Thu Aug 13, 2020 2:19 pm
Semaphore wrote: Mon Aug 10, 2020 10:45 pm Refinancing through Better.com and closing approaches. Is it normal for the loan amount, monthly payment, and cash to close to increase through the process?

After our August payment, we owe PenFed $447,568.55. Better offered us a 2.75% rate, so we decided to roll fees into the mortgage. The loan amount was calculated as $451,076 last week, and is now $469,059. The loan costs have not risen, but the prepaids and escrow have increased such that school taxes are prepaid 6 mos, homeowner's insurance is prepaid 11 mos, property taxes 7mos, municipality tax 5mos, and school taxes appears a second time, 3 mos.

Cash to close rose from about $200 to over $3000. I'm feeling a little bewildered.
Semaphore - It seems like no one responded to you.

Did you choose to escrow? I don't know where you are located but that is a lot of tax items (school tax, municipality tax, property tax, homeowner's insurance) I'm not familiar with the first two as I only have experience with the latter two (Property Tax + Homeowner's Insurance).

If you choose to escrow, then the lender/service will calculate how much you should have "saved" for that upcoming payment and ask for that amount + 1-2 months buffer. For example, if you are 3 months away from a property tax payment and your payment is typically annual, they might expect you to have 9 months saved up.

I would talk to Better.com and get the duplicate school tax removed. If you are choosing to escrow, just ask Better.com why each amount is required.
If you are not choosing to escrow, ask Better.com to remove them from the LE and send you an updated LE.

The other thing you can do is to get Loan Estimate from other lenders. If you get better offers from (for example LenderFi, Loan Cabin, Watermark, etc.), see if Better will beat them. If not at least you found yourself something better elsewhere.

Thanks @MeAPhool! Sorry, I did not see your response in all the other posts. Yes, that is a good idea-- I will just ask! If we don't need to borrow so much, I guess I can also just ask that we not do so.
PerfecTiming
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Re: Refinance Mega Thread

Post by PerfecTiming »

millionsofpennies wrote: Sat May 23, 2020 10:45 pm
PerfecTiming wrote: Mon May 18, 2020 4:22 pm I was just recently able to get a 30 year @ 2.99% no costs, no points refi in CA for a $400k loan. I was also seeing 15 years @ 2.625%.
I also recently locked in @ 2.99% for 30 year no cost refi in CA with owning.com. Are you going with "cash out limited" option to cover the prepaids? That's how mine is currently set but I'm reading up on cash out limited vs no cash out.
I also used Owning. I opted out of an escrow account.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Tue Aug 18, 2020 12:47 pm
anon_investor wrote: Tue Aug 18, 2020 12:39 pm
BrandonBogle wrote: Tue Aug 18, 2020 12:02 pm
Ryzen wrote: Tue Aug 18, 2020 9:47 am I think it is a misunderstanding. If they are locked, I don't see what Watermark can do except bully customers into letting the lock expire? Regardless, people who aren't locked are going to pay.

These online lenders run on razor thin margins, they are taking a hit from this for sure.
Agreed. Watermark will pay an extra 0.5% to insure/sell the loan, but it cannot pass that to customers with an active rate lock, unless the rate lock expires. Anyone not locked in has had their offer of X rate for Y points/lender credits adjusted already.
Pure speculation, but the fact that WM is ghosting everyone who supposedly have a rate lock seems extremely suspicious, as if they are trying to delay things long enough for those juicy locked rates to expire...
Perhaps, but this isn’t a new behavior for them. They behaved the same way in May, June, and July.
Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

need403bhelp wrote: Tue Aug 18, 2020 5:06 pm Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
A + B + C*+ E- Lender Credits

* For C, use the lower of either the lender’s preferred provider, or one you can get elsewhere

Meanwhile, I view lenders as a commodity, so whichever provides the best value (which may not be the cheapest) is who I would go with.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Tue Aug 18, 2020 5:14 pm
need403bhelp wrote: Tue Aug 18, 2020 5:06 pm Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
A + B + C*+ E- Lender Credits

* For C, use the lower of either the lender’s preferred provider, or one you can get elsewhere

Meanwhile, I view lenders as a commodity, so whichever provides the best value (which may not be the cheapest) is who I would go with.
Thanks. For my state, most title charges are mandated by law and I am using my own title company.

E is also mandated by law in my state.

So I guess I am ignoring those as they are not going to change based on lender.

I guess I don't 100% understand your "best value" comment. Are you talking about responsiveness? Something else?
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Tue Aug 18, 2020 5:14 pm
need403bhelp wrote: Tue Aug 18, 2020 5:06 pm Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
A + B + C*+ E- Lender Credits

* For C, use the lower of either the lender’s preferred provider, or one you can get elsewhere

Meanwhile, I view lenders as a commodity, so whichever provides the best value (which may not be the cheapest) is who I would go with.
Also, at what point do you withdraw your application?

It looks like better.com after the $2500 AmEx offer is $1,393 better for me (comparing A + B + Lender credits as a negative number and getting rid of some clearly erroneous HOA charges in B that my HOA doesn't charge).

Thanks!
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

need403bhelp wrote: Tue Aug 18, 2020 5:17 pm
BrandonBogle wrote: Tue Aug 18, 2020 5:14 pm
need403bhelp wrote: Tue Aug 18, 2020 5:06 pm Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
A + B + C*+ E- Lender Credits

* For C, use the lower of either the lender’s preferred provider, or one you can get elsewhere

Meanwhile, I view lenders as a commodity, so whichever provides the best value (which may not be the cheapest) is who I would go with.
Thanks. For my state, most title charges are mandated by law and I am using my own title company.

E is also mandated by law in my state.

So I guess I am ignoring those as they are not going to change based on lender.

I guess I don't 100% understand your "best value" comment. Are you talking about responsiveness? Something else?
Whatever value points matter to you.

- Better’s website is pretty convenient, but they make you hustle to get a good offer
- Watermark is up front about the offerings, competitive, and services their loans, but takes 45+ days to close
- Loan Cabin is very competitive, but is very slow on communication and likely takes 60 days to close

Don’t ignore Section C costs. For instance, for my refis, Better charges $1,250 using their provider and Watermark charges $1,600 using theirs. However, my local provider charges $1,150. So I use $1,150 when comparing those two and others. However, loanDepot’s preferred provider charges $975. So I use $975 in their offer vs. $1,125 at the others, since I can’t get the loanDepot orovider’s pricing without going through them. Sometimes you find such surprising options.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Tue Aug 18, 2020 5:27 pm
need403bhelp wrote: Tue Aug 18, 2020 5:17 pm
BrandonBogle wrote: Tue Aug 18, 2020 5:14 pm
need403bhelp wrote: Tue Aug 18, 2020 5:06 pm Dumb question - is A + B + Lender Credits (which are a negative number) best way to compare offers?

Also, if you could choose between closing with WM, LC, or Better.com, whom would you choose?

Thanks!
A + B + C*+ E- Lender Credits

* For C, use the lower of either the lender’s preferred provider, or one you can get elsewhere

Meanwhile, I view lenders as a commodity, so whichever provides the best value (which may not be the cheapest) is who I would go with.
Thanks. For my state, most title charges are mandated by law and I am using my own title company.

E is also mandated by law in my state.

So I guess I am ignoring those as they are not going to change based on lender.

I guess I don't 100% understand your "best value" comment. Are you talking about responsiveness? Something else?
Whatever value points matter to you.

- Better’s website is pretty convenient, but they make you hustle to get a good offer
- Watermark is up front about the offerings, competitive, and services their loans, but takes 45+ days to close
- Loan Cabin is very competitive, but is very slow on communication and likely takes 60 days to close

Don’t ignore Section C costs. For instance, for my refis, Better charges $1,250 using their provider and Watermark charges $1,600 using theirs. However, my local provider charges $1,150. So I use $1,150 when comparing those two and others. However, loanDepot’s preferred provider charges $975. So I use $975 in their offer vs. $1,125 at the others, since I can’t get the loanDepot orovider’s pricing without going through them. Sometimes you find such surprising options.
I see, thanks so much.

LoanDepot seems to be ignoring me or maybe my agent has decided I am too annoying (or maybe he is just too busy?).

Our state mandates insurance rates, so mainly difference is in some junk fees.

I'm debating using a local title company that charges no escrow or junk fees, but I used them before for a sale and they were atrocious (although, to be fair, they did have to coordinate 3 mobile notaries in three different cities, but I think it is really just one lady in charge of the local office). It may make more sense to pay $200-300 instead for a smoother experience.
reeder
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Re: Refinance Mega Thread

Post by reeder »

reeder wrote: Wed Aug 12, 2020 7:26 pm
Goal33 wrote: Wed Aug 12, 2020 7:11 pm
reeder wrote: Wed Aug 12, 2020 6:54 pm Wanted to thank everyone for the insight into the refinancing process. I learned a lot and will save a lot of money.

Current situation
4.75% mortgage with $490k balance and 75% LTV

Moving to
2.75 % rate no points and all closing costs included with LenderFi

I started with Bank of America. They offered 3.125% with closing costs financed in the loan amount. I started comparing and found Interfirst - they offered 2.875 with $5500 in third party fees (no loan related fees). I then the LenderFi links with the backdoor link. I applied and they responded in a couple of hours with 2.75% with no closing costs. I took that LE and went to Better.com - they said they couldn’t match it so I locked in with LenderFi. I’m in a state with high transfer taxes so while the rate is a little higher than some others are getting no closing costs is a big benefit. Signed the Closing Disclosure yesterday and the closing document had a close date of this Friday so hopefully it’ll get some then.

Thanks again
When did you apply to LenderFi? Just trying to see how long the process is.
Applied 7/28
Officially locked rate - 7/31
Moved to processing 8/3
Request for additional info - 8/4
Signed pre-closing disclosure - 8/11 (I mistakenly called this a closing disclosure originally)
Closed today - exactly 3 weeks from initial application. Amazing process - I spoke to the loan officer once and everything else was online. There was one emailed request for additional documentation from the processor and one email from me with a question. Very impressed with Lenderfi.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

reeder wrote: Tue Aug 18, 2020 5:47 pm
reeder wrote: Wed Aug 12, 2020 7:26 pm
Goal33 wrote: Wed Aug 12, 2020 7:11 pm
reeder wrote: Wed Aug 12, 2020 6:54 pm Wanted to thank everyone for the insight into the refinancing process. I learned a lot and will save a lot of money.

Current situation
4.75% mortgage with $490k balance and 75% LTV

Moving to
2.75 % rate no points and all closing costs included with LenderFi

I started with Bank of America. They offered 3.125% with closing costs financed in the loan amount. I started comparing and found Interfirst - they offered 2.875 with $5500 in third party fees (no loan related fees). I then the LenderFi links with the backdoor link. I applied and they responded in a couple of hours with 2.75% with no closing costs. I took that LE and went to Better.com - they said they couldn’t match it so I locked in with LenderFi. I’m in a state with high transfer taxes so while the rate is a little higher than some others are getting no closing costs is a big benefit. Signed the Closing Disclosure yesterday and the closing document had a close date of this Friday so hopefully it’ll get some then.

Thanks again
When did you apply to LenderFi? Just trying to see how long the process is.
Applied 7/28
Officially locked rate - 7/31
Moved to processing 8/3
Request for additional info - 8/4
Signed pre-closing disclosure - 8/11 (I mistakenly called this a closing disclosure originally)
Closed today - exactly 3 weeks from initial application. Amazing process - I spoke to the loan officer once and everything else was online. There was one emailed request for additional documentation from the processor and one email from me with a question. Very impressed with Lenderfi.
Closed as in signed the documents with the notary today?
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

LenderFi loan:

My processor told me they submitted me to underwriting yesterday and I should hear back on Friday... I do plan to go to the mountains from Friday afternoon to Sunday afternoon, where I have internet but no cell reception. Just curious if I should cancel my weekend getaway just in case I might be forced to deal with a notary visit while I'm gone, or is a refinance similar to purchasing where they need to give you 3 days to review closing disclosures before you can actually sign? When they schedule the notary visit is that communication all via email?
Monsterflockster
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Re: Refinance Mega Thread

Post by Monsterflockster »

m7a8a6 wrote: Tue Aug 18, 2020 11:25 am
PharmerBrown wrote: Mon Aug 17, 2020 9:56 pm
m7a8a6 wrote: Mon Aug 17, 2020 8:38 pm Hello everyone. First post from a long time novice lurking and sucking up all the wisdom from everyone(thank you). I couldn’t help but finally create an account because I’m just failing at making progress on this one.

I’m surprised at how everyone is able to get such low interest rates. I’m not able to find any refinance offers with no cost..or even low cost for my refinance goals. Loan officers told me straight up there are no offerings that are going to be net low or no cost.

I have excellent credit (815+), steady FT employment, 250k/30 yr loan at 4.5% in NJ.

Better - 3.0% at 7k in closing
Aimloan - 3.0% at 5.5k in closing
LD - 3.0% at 5k in closing
Ran through credible, lending tree, rocket mortgage but all had high costs.

I’m definitely doing something wrong. What’s the best strategy to achieve getting lenders to offer no cost?
How much of those closing costs are going toward your escrow?
Hi,
I just realized I entered better.com number incorrectly.

Better - A+B+C - $4430, E - $340, F - $2236, G - $1448 - Total - $8454
Aimloan - A+B+C - $2712, E - $230, F - $308, G - $1925 - Total - $5175
LD - They only gave me an overall number of $5k over the phone. No breakdown.
That is pretty much where things are at right now I think. Things were down to 2.75 no cost and some even got 2.5% for 30 year. I inquired with Lenderfi and Owning after Loan Depot is now on day 55 of my lock... Well what was 2.625-2.75% no cost is now 3.125%. That 0.5% is the difference.
akuseimark
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Re: Refinance Mega Thread

Post by akuseimark »

Goal33 wrote: Tue Aug 18, 2020 6:05 pm LenderFi loan:

My processor told me they submitted me to underwriting yesterday and I should hear back on Friday... I do plan to go to the mountains from Friday afternoon to Sunday afternoon, where I have internet but no cell reception. Just curious if I should cancel my weekend getaway just in case I might be forced to deal with a notary visit while I'm gone, or is a refinance similar to purchasing where they need to give you 3 days to review closing disclosures before you can actually sign? When they schedule the notary visit is that communication all via email?
All communication will be via email, so you’re good on that front. You also need to sign your pre-closing disclosure at least 3 days prior to closing, so as long as you don’t receive those before you leave then you’ll be good. I signed mine about 2 weeks before closing due to a backlog in final underwriting.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

Goal33 wrote: Tue Aug 18, 2020 6:05 pm LenderFi loan:

My processor told me they submitted me to underwriting yesterday and I should hear back on Friday... I do plan to go to the mountains from Friday afternoon to Sunday afternoon, where I have internet but no cell reception. Just curious if I should cancel my weekend getaway just in case I might be forced to deal with a notary visit while I'm gone, or is a refinance similar to purchasing where they need to give you 3 days to review closing disclosures before you can actually sign? When they schedule the notary visit is that communication all via email?
You have to wait 3 business days after signing the preclosing disclosure to close. With LenderFi you can esign it, so you just need internet.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

akuseimark wrote: Tue Aug 18, 2020 6:59 pm
Goal33 wrote: Tue Aug 18, 2020 6:05 pm LenderFi loan:

My processor told me they submitted me to underwriting yesterday and I should hear back on Friday... I do plan to go to the mountains from Friday afternoon to Sunday afternoon, where I have internet but no cell reception. Just curious if I should cancel my weekend getaway just in case I might be forced to deal with a notary visit while I'm gone, or is a refinance similar to purchasing where they need to give you 3 days to review closing disclosures before you can actually sign? When they schedule the notary visit is that communication all via email?
All communication will be via email, so you’re good on that front. You also need to sign your pre-closing disclosure at least 3 days prior to closing, so as long as you don’t receive those before you leave then you’ll be good. I signed mine about 2 weeks before closing due to a backlog in final underwriting.
anon_investor wrote: Tue Aug 18, 2020 7:00 pm
Goal33 wrote: Tue Aug 18, 2020 6:05 pm LenderFi loan:

My processor told me they submitted me to underwriting yesterday and I should hear back on Friday... I do plan to go to the mountains from Friday afternoon to Sunday afternoon, where I have internet but no cell reception. Just curious if I should cancel my weekend getaway just in case I might be forced to deal with a notary visit while I'm gone, or is a refinance similar to purchasing where they need to give you 3 days to review closing disclosures before you can actually sign? When they schedule the notary visit is that communication all via email?
You have to wait 3 business days after signing the preclosing disclosure to close. With LenderFi you can esign it, so you just need internet.
Thank you!
thrillhou
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Re: Refinance Mega Thread

Post by thrillhou »

Goal33 wrote: Tue Aug 18, 2020 3:01 pm
jjhk121 wrote: Tue Aug 18, 2020 2:41 pm Owning has some weird looking rates today. I assume this is because of the new Fannie/Freddie fee. Good news is that their 30yr fixed rates have actually done down from where they were the past few days.
I can't remember exactly but it looks like they went to APR and also changed from "no closing costs" to "no muss, no fuss" ... marketing :wink:
Owning also changed the disclosures (linked from homepage). Now: "Disclosed rate assumes a $400,000 rate and term refinance loan on an owner-occupied single family residence in California. Minimum 740 FICO credit score, 50% loan to value with no subordinate debt." It used to be $350k to get the best advertised rate.

Also, in the closing costs section, it says the minimum loan amount is $350k. I can't remember what it said before. Does anyone have the old disclosures saved? (I'll have to look at the webarchive later. EDIT: It was a quick look, and there wasn't anything saved... is now; https://web.archive.org/web/20200819015 ... isclosure/)
FiscallyResponsible
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Re: Refinance Mega Thread

Post by FiscallyResponsible »

nic3456 wrote: Tue Aug 18, 2020 1:48 pm Has anyone done a cashout refi with Loan Cabin (or even got a LE)? I'm wondering if their calculator on the webpage is working because I haven't got another lender to come with 50 basis points of what LC website says (2.375% with ~$1K in costs)

I'm guessing I'm at least 7-10 days away from LC getting to my app date.
Good question, I'm in the same boat. Inquired late July, formally applied Aug 4... still no loan estimate. Would like to do cash out because those rates are great.
unstartable
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Re: Refinance Mega Thread

Post by unstartable »

My appraisal came back for about $20k more than the number I used on the initial application. This lowered my loan to value ratio from the upper 70% range to the lower 70% range. The lender issued a new estimate with 0.25% less on the point I bought.
m7a8a6
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Re: Refinance Mega Threadve

Post by m7a8a6 »

3of10 wrote: Tue Aug 18, 2020 1:43 pm
teCh0010 wrote: Tue Aug 18, 2020 7:44 am
yatesd wrote: Tue Aug 18, 2020 4:13 am
m7a8a6 wrote: Mon Aug 17, 2020 8:38 pm Hello everyone. First post from a long time novice lurking and sucking up all the wisdom from everyone(thank you). I couldn’t help but finally create an account because I’m just failing at making progress on this one.

I’m surprised at how everyone is able to get such low interest rates. I’m not able to find any refinance offers with no cost..or even low cost for my refinance goals. Loan officers told me straight up there are no offerings that are going to be net low or no cost.

I have excellent credit (815+), steady FT employment, 250k/30 yr loan at 4.5% in NJ.

Better - 3.0% at 7k in closing
Aimloan - 3.0% at 5.5k in closing
LD - 3.0% at 5k in closing
Ran through credible, lending tree, rocket mortgage but all had high costs.

I’m definitely doing something wrong. What’s the best strategy to achieve getting lenders to offer no cost?
Welcome to Bogleheads! Please provide a breakdown so we can understand your offer. Also, make sure you are focusing on "cost" of loan & related fees (title insurance, doc fees), versus interest overlap and escrow that will be variable, paid up front, with much of this rebated with any overpayment by the previous lender.
Your loan amount impacts your rates. When I played with the Costco calculator I put in 270k and 330k, got a lower rate on 330k. At 250k you may not get quite as good a rate as some other people.
+1. M7a8a6, in addition to what the others have posted, it would help if you update with the LTV. That is just as important as your credit score in getting the best rate.
Sorry y'all. Getting used to this. My LTV at the moment is 63%.
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mags
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Re: Refinance Mega Thread

Post by mags »

"What does conforming means?"



Non-jumbo loan.
pwill112
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Re: Refinance Mega Thread

Post by pwill112 »

So, rates are going up?

What ballpark is a good rate for a Veteran's loan today. 30 year fixed refinance?
m@ver1ck
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Re: Refinance Mega Thread

Post by m@ver1ck »

I locked 30yrs at 2.875% on a 200K loan. This from a 2.75%/15yr loan that would mature in 2028.

I’ll probably pay the loan off in a lump sum payment before 2028, but let’s see what the next few years bring.

The key insight was that I’ll never actually own my home free and clear - property taxes + insurance is still 8K a year.
covertfantom
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Re: Refinance Mega Thread

Post by covertfantom »

Minor update from my original post. I submitted paperwork to LenderFi 30 minutes before closing on the day of the 0.5% fee increase. I received the next round of documents tonight and my no cost loan for $350,000 @ 2.5% appears to have made it through. I signed the paperwork right away - however crazy the market is, I'm not going to put money on it dropping 0.5% between now and my rate lock expiration.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

m@ver1ck wrote: Tue Aug 18, 2020 11:13 pm I locked 30yrs at 2.875% on a 200K loan. This from a 2.75%/15yr loan that would mature in 2028.

I’ll probably pay the loan off in a lump sum payment before 2028, but let’s see what the next few years bring.

The key insight was that I’ll never actually own my home free and clear - property taxes + insurance is still 8K a year.
Given your intent why are you wasting your time and money?
reeder
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Re: Refinance Mega Thread

Post by reeder »

Goal33 wrote: Tue Aug 18, 2020 6:02 pm
reeder wrote: Tue Aug 18, 2020 5:47 pm
reeder wrote: Wed Aug 12, 2020 7:26 pm
Goal33 wrote: Wed Aug 12, 2020 7:11 pm
reeder wrote: Wed Aug 12, 2020 6:54 pm Wanted to thank everyone for the insight into the refinancing process. I learned a lot and will save a lot of money.

Current situation
4.75% mortgage with $490k balance and 75% LTV

Moving to
2.75 % rate no points and all closing costs included with LenderFi

I started with Bank of America. They offered 3.125% with closing costs financed in the loan amount. I started comparing and found Interfirst - they offered 2.875 with $5500 in third party fees (no loan related fees). I then the LenderFi links with the backdoor link. I applied and they responded in a couple of hours with 2.75% with no closing costs. I took that LE and went to Better.com - they said they couldn’t match it so I locked in with LenderFi. I’m in a state with high transfer taxes so while the rate is a little higher than some others are getting no closing costs is a big benefit. Signed the Closing Disclosure yesterday and the closing document had a close date of this Friday so hopefully it’ll get some then.

Thanks again
When did you apply to LenderFi? Just trying to see how long the process is.
Applied 7/28
Officially locked rate - 7/31
Moved to processing 8/3
Request for additional info - 8/4
Signed pre-closing disclosure - 8/11 (I mistakenly called this a closing disclosure originally)
Closed today - exactly 3 weeks from initial application. Amazing process - I spoke to the loan officer once and everything else was online. There was one emailed request for additional documentation from the processor and one email from me with a question. Very impressed with Lenderfi.
Closed as in signed the documents with the notary today?
Yes - signed documents with the notary. Loan should fund on Monday.
marcisaninja
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Re: Refinance Mega Thread

Post by marcisaninja »

I just locked with New American Funding at 2.75. My previous loan was at 3.75.

280k Loan

A+B+C=2871

E+F+G+H=2809

Lender Credit= 2985
cyfairslam
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Re: Refinance Mega Thread

Post by cyfairslam »

Lenderfi temporarily not taking any more load applications. Evidently, they have a backlog and cannot perform in the necessary time limits.

Sounds like they are a good company.
jimmyrules712
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Re: Refinance Mega Thread

Post by jimmyrules712 »

cyfairslam wrote: Wed Aug 19, 2020 9:24 am Lenderfi temporarily not taking any more load applications. Evidently, they have a backlog and cannot perform in the necessary time limits.

Sounds like they are a good company.
Are you saying this because of the message on their home page (which has been up for over a month now) or did you try applying with one of the backdoor links and was rejected?
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gas_balloon
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Re: Refinance Mega Thread

Post by gas_balloon »

Closed yesterday with owning on 30yr fixed at 2.5%. 16 days start to finish, no cost (A+B+C+E+lender credit = 0), no appraisal needed. Now let's see who they sell the servicing to!
cyfairslam
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Re: Refinance Mega Thread

Post by cyfairslam »

I was just going off of the web/home page.

I will go ahead and move forward.

Thanks for the heads up.
chet96
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Re: Refinance Mega Thread

Post by chet96 »

nic3456 wrote: Tue Aug 18, 2020 1:48 pm Has anyone done a cashout refi with Loan Cabin (or even got a LE)? I'm wondering if their calculator on the webpage is working because I haven't got another lender to come with 50 basis points of what LC website says (2.375% with ~$1K in costs)

I'm guessing I'm at least 7-10 days away from LC getting to my app date.
They just reached out to me a few days ago - asking what my property address is. Very odd.

I applied 3 weeks ago.
mtwhmemn
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Re: Refinance Mega Thread

Post by mtwhmemn »

tbone555 wrote: Tue Aug 18, 2020 1:58 pm
GRAZ wrote: Tue Aug 18, 2020 1:54 pm
tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
My apologies. I closed on July 22 not June 22.

My bad.
I closed with Better July 31 and received my $2500 credit August 16 or 17.
drizzleray
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Re: Refinance Mega Thread

Post by drizzleray »

mtwhmemn wrote: Wed Aug 19, 2020 10:49 am
tbone555 wrote: Tue Aug 18, 2020 1:58 pm
GRAZ wrote: Tue Aug 18, 2020 1:54 pm
tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
My apologies. I closed on July 22 not June 22.

My bad.
I closed with Better July 31 and received my $2500 credit August 16 or 17.
There’s been some reports that the AMEX credit posts on your statement closing date - was that the case for you? I’m still waiting on my credit & I closed in early July.
mtwhmemn
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Re: Refinance Mega Thread

Post by mtwhmemn »

drizzleray wrote: Wed Aug 19, 2020 10:55 am
mtwhmemn wrote: Wed Aug 19, 2020 10:49 am
tbone555 wrote: Tue Aug 18, 2020 1:58 pm
GRAZ wrote: Tue Aug 18, 2020 1:54 pm
tbone555 wrote: Tue Aug 18, 2020 12:13 pm Closed with Better on June 22. Received $2500 AMEX credit yesterday August 18.
Thanks for posting this - I closed with Better about one month after you did and ave not seen my AMEX credit. I have been assuming that the credit will go through after I make my first payment which is Sept 1 for me which seems to match with your timing.
My apologies. I closed on July 22 not June 22.

My bad.
I closed with Better July 31 and received my $2500 credit August 16 or 17.
There’s been some reports that the AMEX credit posts on your statement closing date - was that the case for you? I’m still waiting on my credit & I closed in early July.
I just checked my statement and, yes, it was actually 8/14 that I got the credit and that is my statement closing date.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

drizzleray wrote: Wed Aug 19, 2020 10:55 am There’s been some reports that the AMEX credit posts on your statement closing date - was that the case for you? I’m still waiting on my credit & I closed in early July.
A better way to word it is that once the Amex credit shows up, it is backdated to the statement closing date. It doesn't actually appear (online) on that day.
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