Refinance Mega Thread

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need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Sat Aug 29, 2020 12:03 am
need403bhelp wrote: Sat Aug 29, 2020 12:01 am Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.
Don’t forget the time value of money and potential inflation (if you believe we’d have inflation over the next 30 years).
Thanks.

I tried to clean up my analysis a bit this morning (I have a few days to decide).

Given some of the debate re the taxability of the AMEX credit, I decided to assume it is taxable just in case (worst case scenario, it is not a huge difference).

Looks like "break even" without inflation is 10 years (it is at end of year 9 but I start at year 0 in my calculations, hence my prior error).

Interestingly, inflation doesn't make a huge difference (assuming I did my calculations correctly, I tried to do it two different ways, comparing present values “reverse adjusted” for inflation and also future values adjusted for inflation, and break-even seems to match up).

If we assume 1% inflation, break-even moves from 10 years to 10.5 years.

If we assume 2% inflation, break-even moves from 10 years to ~11.3 years.

Maybe it is just because the relative amounts of interest are pretty small, so inflation doesn’t do a much to them.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

Shikoku wrote: Sat Aug 29, 2020 8:42 am
need403bhelp wrote: Sat Aug 29, 2020 12:01 am
BrandonBogle wrote: Fri Aug 28, 2020 11:42 pm
need403bhelp wrote: Fri Aug 28, 2020 11:26 pm On the one hand, I’m sick of rate shopping and really was aiming for 2.375% no-cost, so lender #2 would be the way to go from that perspective. Also the loan officer has been great!

On the other hand, I’m trying to be objective. I made amortization tables in Excel for both loans, and it seems that, in terms of the difference in total interest paid, it would take between 9 years (if AMEX credit is taxable) and 12 years (if AMEX credit is not taxable) for lender #2 to come out ahead given the large “cash in hand” for lender #1. Also, I like that I can “see the finish line” (possible closing this week) with lender #1 despite having locked with them a few days after lender #2.

Any thoughts or advice? Really appreciate everyone’s help!

Edited to fix typo.
What’s Better’s cost for 2.375%? You can change the rate you locked to any other length or rate that was on the your rate table the day you locked. So perhaps some of the $1,371.90 to buy down to 2.375% and still come out ahead after the Amex credit.

This is ultimately what I’m doing. Earlier in the thread I posted my entire rate table for 15 year and 30 year (though 20 year and ARMs are options I can pick). This is because it would take years for me to come out ahead at the lower rate. Lots can change over the next decade and even if I don’t go lower, I’m at most losing less than $5k. My cash today is better used elsewhere.
Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.
I would also select lender #1 and am in agreement with you that rate shopping is tiring but may be you would like to refinance just one more time after AMEX credit is received to lower the rate again. As far as I understand, the rate is not going anywhere. BTW, who is lender #2?
Thanks, I may think about this option, although I'm not sure exactly what will happen to rates with implementation of 0.5% FHFA fee December 1st.

Also, technically, my understanding is that your don't really have to receive the AMEX credit before re-refinancing, no? My last AMEX credit (back when COVID first hit) took almost 10 weeks to post, unlike some of the others who received it within a month, so that would be a really long time to wait potentially.

I'll send you a PM with lender #2. They were not offering this rate off the bat and matched/beat at least two other offers for me.

EDIT: Actually, I don't see how to send you a PM. Under "Contact User" in your profile, I don't see anything listed. Maybe I have to add you as a "friend" first?
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

mrmicro wrote: Sat Aug 29, 2020 12:06 pm
need403bhelp wrote: Fri Aug 28, 2020 11:26 pm
BrandonBogle wrote: Fri Aug 28, 2020 8:24 pm Generally speaking, yes. The settlement agent is supposed to get a tax certification. Typically, if that is due within 60 days, the settlement agent will have that collected and it will be added to your closing disclosures if it is not already in your loan estimate. Having or not having an escrow does not play a role with this, but I’m sure it will vary by lender and settlement agent how they do it too. In the end, this shouldn’t matter as your tax bill would be due soon and you would be paying it anyways?!?
Thank you!

So I have a dilemma.

Two offers for 30 year fixed:

Lender #1 - 2.5%, ready to close
A = $0, B = $214, C = $1,376.10, E = $114, Lender Credits = -$3,076 plus additional $2,500 post-closing statement credit
A + B + C + E + Lender credits = -$1371.90
With AMEX post-closing credit would be -$3,871.90

Lender #2 - 2.375%, “conditionally approved”
A = $1,499, B = $179, C = $1,154, E = $172, Lender Credits = -$3,049
A + B + C + E + Lender credits = -$45.00

On the one hand, I’m sick of rate shopping and really was aiming for 2.375% no-cost, so lender #2 would be the way to go from that perspective. Also the loan officer has been great!

On the other hand, I’m trying to be objective. I made amortization tables in Excel for both loans, and it seems that, in terms of the difference in total interest paid, it would take between 9 years (if AMEX credit is taxable) and 12 years (if AMEX credit is not taxable) for lender #2 to come out ahead given the large “cash in hand” for lender #1. Also, I like that I can “see the finish line” (possible closing this week) with lender #1 despite having locked with them a few days after lender #2.

Any thoughts or advice? Really appreciate everyone’s help!

Edited to fix typo.
Wow, you got great rates. Lender 1 sounds like the way to go.
I am also looking for a 30 year no cost refinance at 2.5. Can you share who Lender #2 is 😊
Thanks. Sent you PM.
thrillhou
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Re: Refinance Mega Thread

Post by thrillhou »

It's correct that the lender credit can be used to lower the loan amount, right?

Assuming so, how far can you push the credit? Theoretically, what if you ask for a 30% mortgage and get some huge amount back which lowers your loan. Then, refi again (and again... ad nauseam)
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

thrillhou wrote: Sat Aug 29, 2020 2:03 pm It's correct that the lender credit can be used to lower the loan amount, right?

Assuming so, how far can you push the credit? Theoretically, what if you ask for a 30% mortgage and get some huge amount back which lowers your loan. Then, refi again (and again... ad nauseam)
Some lenders allow lender credits to be used to lower principal. However, lender credits are limited. For example, in general WaterMark allows no more than 3k lender credits. If they allow me to take 25% interest rate with 100k lender credits, I will do it in a jiffy. We all will be rich at the expense of someone else. After 4 refinance my mortgage will vanish. Lol!
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

My refinancing with Better for 30 year FRM at 2.5% has concluded. Sincere thanks to BrandonBogle and many other members who posted questions and shared their wisdom.
  • July 24: Submitted application using AMEX link.
  • August 2: Locked at 2.625% with high cost. Application moved from loan officer to loan processor immediately. Uploaded most of the documents and answered almost all the questions posed by the online system.
  • August 3: Loan moved to underwriting.
  • August 4: The loan processor matched two LEs. Rate dropped to 2.5% with lender credits covering all costs plus $500+ toward prepaids.
  • August 10: Obtained a quote for title insurance and settlement services from Radian. Better Mortgage matched the price by increasing the lender credit by $500+. This results in $1k+ lender credits toward prepaids.
  • August 13: File moved to underwriting team for final review.
  • August 14: File moved to closing expert.
  • August 20: Signed closing documents. Lender credit $1k- was used to lower the principal and $150+ was used as prepaids.
  • August 25: Fund disbursed.
  • August 28: Received a check for $2k as cash to borrower.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
JSDNJ
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Re: Refinance Mega Thread

Post by JSDNJ »

Shikoku wrote: Sat Aug 29, 2020 2:56 pm My refinancing with Better for 30 year FRM at 2.5% has concluded. Sincere thanks to BrandonBogle and many other members who posted questions and shared their wisdom.
  • July 24: Submitted application using AMEX link.
  • August 2: Locked at 2.625% with high cost. Application moved from loan officer to loan processor immediately. Uploaded most of the documents and answered almost all the questions posed by the online system.
  • August 3: Loan moved to underwriting.
  • August 4: The loan processor matched two LEs. Rate dropped to 2.5% with lender credits covering all costs plus $500+ toward prepaids.
  • August 10: Obtained a quote for title insurance and settlement services from Radian. Better Mortgage matched the price by increasing the lender credit by $500+. This results in $1k+ lender credits toward prepaids.
  • August 13: File moved to underwriting team for final review.
  • August 14: File moved to closing expert.
  • August 20: Signed closing documents. Lender credit $1k- was used to lower the principal and $150+ was used as prepaids.
  • August 25: Fund disbursed.
  • August 28: Received a check for $2k as cash to borrower.

Why did you receive $2k. Didn’t you put the excess toward principle?

Am I understanding correctly that you received a negative cost 30 year at 2.5%?

If so that seems to be the best if not one of the best deals in this thread.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Shikoku wrote: Sat Aug 29, 2020 2:56 pm My refinancing with Better for 30 year FRM at 2.5% has concluded. Sincere thanks to BrandonBogle and many other members who posted questions and shared their wisdom.
  • July 24: Submitted application using AMEX link.
  • August 2: Locked at 2.625% with high cost. Application moved from loan officer to loan processor immediately. Uploaded most of the documents and answered almost all the questions posed by the online system.
  • August 3: Loan moved to underwriting.
  • August 4: The loan processor matched two LEs. Rate dropped to 2.5% with lender credits covering all costs plus $500+ toward prepaids.
  • August 10: Obtained a quote for title insurance and settlement services from Radian. Better Mortgage matched the price by increasing the lender credit by $500+. This results in $1k+ lender credits toward prepaids.
  • August 13: File moved to underwriting team for final review.
  • August 14: File moved to closing expert.
  • August 20: Signed closing documents. Lender credit $1k- was used to lower the principal and $150+ was used as prepaids.
  • August 25: Fund disbursed.
  • August 28: Received a check for $2k as cash to borrower.
Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

JSDNJ wrote: Sat Aug 29, 2020 3:09 pm Why did you receive $2k. Didn’t you put the excess toward principle?

Am I understanding correctly that you received a negative cost 30 year at 2.5%?

If so that seems to be the best if not one of the best deals in this thread.
I took $2k cash-out. Yes, it was a negative cost. Many members in this forum did the same.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

Familyman2012 wrote: Sat Aug 29, 2020 3:29 pm Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
JSDNJ
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Re: Refinance Mega Thread

Post by JSDNJ »

Shikoku wrote: Sat Aug 29, 2020 3:34 pm
JSDNJ wrote: Sat Aug 29, 2020 3:09 pm Why did you receive $2k. Didn’t you put the excess toward principle?

Am I understanding correctly that you received a negative cost 30 year at 2.5%?

If so that seems to be the best if not one of the best deals in this thread.
I took $2k cash-out. Yes, it was a negative cost. Many members in this forum did the same.
2.5 at no cost is about the best I’ve seen.
tjf9
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Re: Refinance Mega Thread

Post by tjf9 »

A data point for you all: Shopped for a refi at the end of June - best deal came from Rocket Mortgage. Gave them all the info they needed within a few days and they said I'd close in late July. It's August 29th and that refi still hasn't closed or even scheduled a closing date. I know rates have dropped, so I'm walking away and starting the process over, but thought I'd let you all know my experience. I guess it's a blessing in disguise because I'm getting a better rate, but I just want this done!
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

tjf9 wrote: Sat Aug 29, 2020 9:13 pm A data point for you all: Shopped for a refi at the end of June - best deal came from Rocket Mortgage. Gave them all the info they needed within a few days and they said I'd close in late July. It's August 29th and that refi still hasn't closed or even scheduled a closing date. I know rates have dropped, so I'm walking away and starting the process over, but thought I'd let you all know my experience. I guess it's a blessing in disguise because I'm getting a better rate, but I just want this done!
Did your rate lock expire?
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Shikoku wrote: Sat Aug 29, 2020 3:39 pm
Familyman2012 wrote: Sat Aug 29, 2020 3:29 pm Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
tjf9
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Re: Refinance Mega Thread

Post by tjf9 »

bgh11 wrote: Sat Aug 29, 2020 10:30 pm
tjf9 wrote: Sat Aug 29, 2020 9:13 pm A data point for you all: Shopped for a refi at the end of June - best deal came from Rocket Mortgage. Gave them all the info they needed within a few days and they said I'd close in late July. It's August 29th and that refi still hasn't closed or even scheduled a closing date. I know rates have dropped, so I'm walking away and starting the process over, but thought I'd let you all know my experience. I guess it's a blessing in disguise because I'm getting a better rate, but I just want this done!
Did your rate lock expire?
Twice! They extended it both times at no cost me.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

Familyman2012 wrote: Sat Aug 29, 2020 10:38 pm
Shikoku wrote: Sat Aug 29, 2020 3:39 pm
Familyman2012 wrote: Sat Aug 29, 2020 3:29 pm Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Shikoku wrote: Sat Aug 29, 2020 11:10 pm
Familyman2012 wrote: Sat Aug 29, 2020 10:38 pm
Shikoku wrote: Sat Aug 29, 2020 3:39 pm
Familyman2012 wrote: Sat Aug 29, 2020 3:29 pm Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
Do you recommend I get a quote from Radian before I lock?
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

Familyman2012 wrote: Sat Aug 29, 2020 11:15 pm
Shikoku wrote: Sat Aug 29, 2020 11:10 pm
Familyman2012 wrote: Sat Aug 29, 2020 10:38 pm
Shikoku wrote: Sat Aug 29, 2020 3:39 pm
Familyman2012 wrote: Sat Aug 29, 2020 3:29 pm Dumb question- When you call Radian. What exact charges do you ask a quote for? do I just say “ can I get a quote for title insurance and settlement services?” And they would know what quote to give me? I’m going to call next week. Just not sure what to say.
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
Do you recommend I get a quote from Radian before I lock?
Probably not. Lock and get the best deal with Better first. Immediately get a quote from Radian and sent to the loan processor. That is how I will do it.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Shikoku wrote: Sat Aug 29, 2020 11:30 pm
Familyman2012 wrote: Sat Aug 29, 2020 11:15 pm
Shikoku wrote: Sat Aug 29, 2020 11:10 pm
Familyman2012 wrote: Sat Aug 29, 2020 10:38 pm
Shikoku wrote: Sat Aug 29, 2020 3:39 pm
I called Radian about a week after I locked with Better -- should have done it earlier. Asked them to give me a quote for lender's title insurance and settlement services for refinancing with Better Mortgage with $X loan for the property located at Y. They e-mailed it to me within few hours.
Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
Do you recommend I get a quote from Radian before I lock?
Probably not. Lock and get the best deal with Better first. Immediately get a quote from Radian and sent to the loan processor. That is how I will do it.
Okay Thank you
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

Familyman2012 wrote: Sat Aug 29, 2020 11:39 pm
Shikoku wrote: Sat Aug 29, 2020 11:30 pm
Familyman2012 wrote: Sat Aug 29, 2020 11:15 pm
Shikoku wrote: Sat Aug 29, 2020 11:10 pm
Familyman2012 wrote: Sat Aug 29, 2020 10:38 pm

Can you explain why you would’ve done it earlier? Did it complicate things waiting a week?
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
Do you recommend I get a quote from Radian before I lock?
Probably not. Lock and get the best deal with Better first. Immediately get a quote from Radian and sent to the loan processor. That is how I will do it.
Okay Thank you
You can also tell better that u will find ur own title co when the time u lock
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

tjf9 wrote: Sat Aug 29, 2020 10:46 pm
bgh11 wrote: Sat Aug 29, 2020 10:30 pm
tjf9 wrote: Sat Aug 29, 2020 9:13 pm A data point for you all: Shopped for a refi at the end of June - best deal came from Rocket Mortgage. Gave them all the info they needed within a few days and they said I'd close in late July. It's August 29th and that refi still hasn't closed or even scheduled a closing date. I know rates have dropped, so I'm walking away and starting the process over, but thought I'd let you all know my experience. I guess it's a blessing in disguise because I'm getting a better rate, but I just want this done!
Did your rate lock expire?
Twice! They extended it both times at no cost me.
Are they that busy? Wonder why they keep dragging you. I’m being dragged by one as we speak. LO is quite responsive but waiting for underwriter to complete their part. I haven’t found a better deal from another lender yet.
no_username
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Re: Refinance Mega Thread

Post by no_username »

Shikoku wrote: Sat Aug 29, 2020 2:56 pm My refinancing with Better for 30 year FRM at 2.5% has concluded. Sincere thanks to BrandonBogle and many other members who posted questions and shared their wisdom.
  • July 24: Submitted application using AMEX link.
  • August 2: Locked at 2.625% with high cost. Application moved from loan officer to loan processor immediately. Uploaded most of the documents and answered almost all the questions posed by the online system.
  • August 3: Loan moved to underwriting.
  • August 4: The loan processor matched two LEs. Rate dropped to 2.5% with lender credits covering all costs plus $500+ toward prepaids.
  • August 10: Obtained a quote for title insurance and settlement services from Radian. Better Mortgage matched the price by increasing the lender credit by $500+. This results in $1k+ lender credits toward prepaids.
  • August 13: File moved to underwriting team for final review.
  • August 14: File moved to closing expert.
  • August 20: Signed closing documents. Lender credit $1k- was used to lower the principal and $150+ was used as prepaids.
  • August 25: Fund disbursed.
  • August 28: Received a check for $2k as cash to borrower.
Ok so do you guys shop around until you sign your closing disclosure when the rate is dropping?
Is it a bad idea to walk away after submitting underwriting if you find better rate?
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

no_username wrote: Sun Aug 30, 2020 3:44 am Ok so do you guys shop around until you sign your closing disclosure when the rate is dropping?
Is it a bad idea to walk away after submitting underwriting if you find better rate?
Just like buying a car, the best deal financially is had when you aren’t emotionally attached to any particular provider/offer/car. Being willing to walk away for a better offer gives you the leverage to find that better offer.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

bgh11 wrote: Sun Aug 30, 2020 1:33 am
Familyman2012 wrote: Sat Aug 29, 2020 11:39 pm
Shikoku wrote: Sat Aug 29, 2020 11:30 pm
Familyman2012 wrote: Sat Aug 29, 2020 11:15 pm
Shikoku wrote: Sat Aug 29, 2020 11:10 pm
By the time I told Better that I wanted to use Radian. Better told me that the title work had been completed and they matched Radian's price. My experience with Better Settlement Services is ***negative*** as far as customer service related communication is concerned. I should have used Radian.
Do you recommend I get a quote from Radian before I lock?
Probably not. Lock and get the best deal with Better first. Immediately get a quote from Radian and sent to the loan processor. That is how I will do it.
Okay Thank you
You can also tell better that u will find ur own title co when the time u lock
Tell them **only** after you have completed all your negotiation of rate and lender credit and received an LE.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Shikoku wrote: Sun Aug 30, 2020 11:23 am
bgh11 wrote: Sun Aug 30, 2020 1:33 am You can also tell better that u will find ur own title co when the time u lock
Tell them **only** after you have completed all your negotiation of rate and lender credit and received an LE.
Meanwhile, I wish I waited until my title report came in. It’s been almost a week since my title was ordered from Better Settlement Services and I’m conditionally approved. I sent in a competing title quote hoping to see a discount to match the cost. Hopefully that’s what I hear vs. being told we’d need to cancel and switch to the other provider. I actually want to go with BSS vs. another company. We shall see how things turn out on Monday/Tuesday.
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Re: Refinance Mega Thread

Post by Shikoku »

Why mortgage rates are usually set at an increment of 1/8th of a percent? For example, 30 year FRMs are presently offered at 2.5, 2.625, 2.75, 2.875 percent. There are certainly exceptions to this norm. Loan Cabin is offering a 2.49 rate. Sebonic often also offers non-typical rates.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

BrandonBogle wrote: Sun Aug 30, 2020 11:28 am
Shikoku wrote: Sun Aug 30, 2020 11:23 am
bgh11 wrote: Sun Aug 30, 2020 1:33 am You can also tell better that u will find ur own title co when the time u lock
Tell them **only** after you have completed all your negotiation of rate and lender credit and received an LE.
Meanwhile, I wish I waited until my title report came in. It’s been almost a week since my title was ordered from Better Settlement Services and I’m conditionally approved. I sent in a competing title quote hoping to see a discount to match the cost. Hopefully that’s what I hear vs. being told we’d need to cancel and switch to the other provider. I actually want to go with BSS vs. another company. We shall see how things turn out on Monday/Tuesday.
I am pretty sure that Better will match your other quote. It is a business they probably do not want to miss.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
I assume, lenders are used to this in falling rate environment. The opposite is also true. In a rising rate environment, lenders squeeze the borrower as much as possible. Now the game has changed. Lol!
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
Sure - it's the least I can do after everything I have learned from this forum to save :moneybag :D

Lender # 2 is Union Savings Bank. They are a regional bank and they advertise $250 refinance on their website (https://usavingsbank.com/). They don't have online system to track loan status or anything like that, but my LO has been pleasant and prompt. He initially beat Lender #1 by offering 2.875% for $389 closing cost (A+B+C+E) and then matched LenderFi's rate of 2.5%, once I got a locked LE from them while with closing cost of $349. They service their own mortgage and have waived escrow for me. They locked my rate of 7/24 and the lock is good till 9/8. They have confirmed by email that they will extend the lock if the closing doesn't happen by then.

One downside I see is that it takes them 30 to 45 days to close. Some of you would probably be starting on your second refinance by then :P
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

Shikoku wrote: Sun Aug 30, 2020 11:39 am
BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
I assume, lenders are used to this in falling rate environment. The opposite is also true. In a rising rate environment, lenders squeeze the borrower as much as possible. Now the game has changed. Lol!
I was just concerned if their loan denial would have adverse effect on my credit score or would be held against me in some way for any other loans in future. I have never had a denial before, so not sure if he was just trying to scare me. For the record, I sent them an email saying I am withdrawing my application. Not sure if that was necessary or would be helpful in some way.

Yes, I am enjoying having this shoe on the other foot :happy
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

newbie20 wrote: Sun Aug 30, 2020 12:14 pm I was just concerned if their loan denial would have adverse effect on my credit score or would be held against me in some way for any other loans in future. I have never had a denial before, so not sure if he was just trying to scare me. For the record, I sent them an email saying I am withdrawing my application. Not sure if that was necessary or would be helpful in some way.

Yes, I am enjoying having this shoe on the other foot :happy
No, it will not have any impact on anything. Your credit report will only show a credit pull by them. If asked by other lenders, tell them that you applied but did not pursue the loan with that particular lender further.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
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Re: Refinance Mega Thread

Post by BrandonBogle »

Shikoku wrote: Sun Aug 30, 2020 12:32 pm
newbie20 wrote: Sun Aug 30, 2020 12:14 pm I was just concerned if their loan denial would have adverse effect on my credit score or would be held against me in some way for any other loans in future. I have never had a denial before, so not sure if he was just trying to scare me. For the record, I sent them an email saying I am withdrawing my application. Not sure if that was necessary or would be helpful in some way.

Yes, I am enjoying having this shoe on the other foot :happy
No, it will not have any impact on anything. Your credit report will only show a credit pull by them. If asked by other lenders, tell them that you applied but did not pursue the loan with that particular lender further.
Yeah, the only adverse effect in the future would potentially be if you try to apply with them again.

For instance, I cannot seem to apply with Credible anymore. Even if I open a new account, as soon as my SSN is provided, suddenly “no results are available”. In essence, they’ve blacklisted me. Do I feel hurt by that, nope. If they were competitive in the prior two times I reached out to them, I would have gone with them. So I don’t care if they won’t let me apply a third time.
quizzer25
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Folks in California - Owning vs Loan Cabin

Post by quizzer25 »

Can somebody confirm if Loan Cabin's only fees not included in the rate is the Title insurance? If yes, thats a $1000-$1500 cost on us. Is owning not a better choice if the rate difference is 0.125% as Owning is true no cost loan?
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Re: Refinance Mega Thread

Post by Shikoku »

BrandonBogle wrote: Sun Aug 30, 2020 12:39 pm
Shikoku wrote: Sun Aug 30, 2020 12:32 pm
newbie20 wrote: Sun Aug 30, 2020 12:14 pm I was just concerned if their loan denial would have adverse effect on my credit score or would be held against me in some way for any other loans in future. I have never had a denial before, so not sure if he was just trying to scare me. For the record, I sent them an email saying I am withdrawing my application. Not sure if that was necessary or would be helpful in some way.

Yes, I am enjoying having this shoe on the other foot :happy
No, it will not have any impact on anything. Your credit report will only show a credit pull by them. If asked by other lenders, tell them that you applied but did not pursue the loan with that particular lender further.
Yeah, the only adverse effect in the future would potentially be if you try to apply with them again.

For instance, I cannot seem to apply with Credible anymore. Even if I open a new account, as soon as my SSN is provided, suddenly “no results are available”. In essence, they’ve blacklisted me. Do I feel hurt by that, nope. If they were competitive in the prior two times I reached out to them, I would have gone with them. So I don’t care if they won’t let me apply a third time.
I agree with you, BrandonBogle, that they might not want to do business with a customer with whom they were not happy previously. However, it kind of goes at the side of being illegal. If someone challenges, they will not win, I assume. On the other hand they also probably understand that customers move away because the business is not competitive.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
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Re: Refinance Mega Thread

Post by BrandonBogle »

Shikoku wrote: Sun Aug 30, 2020 12:50 pm
BrandonBogle wrote: Sun Aug 30, 2020 12:39 pm
Shikoku wrote: Sun Aug 30, 2020 12:32 pm
newbie20 wrote: Sun Aug 30, 2020 12:14 pm I was just concerned if their loan denial would have adverse effect on my credit score or would be held against me in some way for any other loans in future. I have never had a denial before, so not sure if he was just trying to scare me. For the record, I sent them an email saying I am withdrawing my application. Not sure if that was necessary or would be helpful in some way.

Yes, I am enjoying having this shoe on the other foot :happy
No, it will not have any impact on anything. Your credit report will only show a credit pull by them. If asked by other lenders, tell them that you applied but did not pursue the loan with that particular lender further.
Yeah, the only adverse effect in the future would potentially be if you try to apply with them again.

For instance, I cannot seem to apply with Credible anymore. Even if I open a new account, as soon as my SSN is provided, suddenly “no results are available”. In essence, they’ve blacklisted me. Do I feel hurt by that, nope. If they were competitive in the prior two times I reached out to them, I would have gone with them. So I don’t care if they won’t let me apply a third time.
I agree with you, BrandonBogle, that they might not want to do business with a customer with whom they were not happy previously. However, it kind of goes at the side of being illegal. If someone challenges, they will not win, I assume. On the other hand they also probably understand that customers move away because the business is not competitive.
The irony is I never stringed them along. I applied and sent them a competing Loan Estimate, saying I’d go with them if they beat it. They declined. A few months later, the same now. Now I can’t apply anymore. Neither time did I ever lock, give an intent to proceed, or even pick a loan. Simply submitted an app and asked the loan officer to beat this offer. They don’t like that. Oh well, their problem, not mine. Plenty of fish/lenders in the sea!
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Re: Refinance Mega Thread

Post by Shikoku »

BrandonBogle wrote: Sun Aug 30, 2020 1:18 pm Plenty of fish/lenders in the sea!
That is true! Since my 2.5% refinance is complete, now I will watch (for the illusive goal) for a no-cost refinance 30 year FRM at 2.31%, a rate when first month's payment divides equally between interest and principal. That will be a milestone. If that cannot be achieved, I am unsure if I will refinance again in my lifetime as we plan to live in this house rest of our lives. We will see what's in store. Thank you for sharing your thought and wisdom in this thread.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Shikoku wrote: Sun Aug 30, 2020 2:48 pm
BrandonBogle wrote: Sun Aug 30, 2020 1:18 pm Plenty of fish/lenders in the sea!
That is true! Since my 2.5% refinance is complete, now I will watch (for the illusive goal) for a no-cost refinance 30 year FRM at 2.31%, a rate when first month's payment divides equally between interest and principal. That will be a milestone. If that cannot be achieved, I am unsure if I will refinance again in my lifetime as we plan to live in this house rest of our lives. We will see what's in store. Thank you for sharing your thought and wisdom in this thread.
My 1st refi I got a quote from LC. But ended up going with better when I found out about the Amex. Now my second refi better beat a LE from a local lender. What are the chances LC would beat Better? Do you think they would even talk to me?
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

Familyman2012 wrote: Sun Aug 30, 2020 3:35 pm
Shikoku wrote: Sun Aug 30, 2020 2:48 pm
BrandonBogle wrote: Sun Aug 30, 2020 1:18 pm Plenty of fish/lenders in the sea!
That is true! Since my 2.5% refinance is complete, now I will watch (for the illusive goal) for a no-cost refinance 30 year FRM at 2.31%, a rate when first month's payment divides equally between interest and principal. That will be a milestone. If that cannot be achieved, I am unsure if I will refinance again in my lifetime as we plan to live in this house rest of our lives. We will see what's in store. Thank you for sharing your thought and wisdom in this thread.
My 1st refi I got a quote from LC. But ended up going with better when I found out about the Amex. Now my second refi better beat a LE from a local lender. What are the chances LC would beat Better? Do you think they would even talk to me?
I ask LC if they can beat. What to lose!
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
jm1495
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Re: Refinance Mega Thread

Post by jm1495 »

You must be in Indiana or Ohio. I’ve refied with union savings before. Good place.
newbie20 wrote: Sun Aug 30, 2020 12:09 pm
BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
newbie20 wrote: Sun Aug 30, 2020 7:04 am I just walked away from my Lender #1 who was at 2.875%, $851 Closing Costs (A+B+C+E-Lender Credits). They scheduled a closing for next week but I have found a Lender #2 who has locked at 2.5%, $349 Closing Costs (A+B+C+E-Lender Credits). Lender #2 expects to close in next 2-3 weeks. Lender #1 was not happy and said he was going to issue a denial of my loan, and I lost my $495 in deposit with them (this was before I had discovered this forum and learnt how/where to find better rates :oops: )

BTW, I also have a lock with LenderFi at 2.5% but their closing cost is $680 (A+B+C+E-Lender Credits). And, they also need me to escrow, which adds substantial $$ for Cash to Close. Their Underwriting has Conditionally Approved the loan. I have told them about Lender #2 and waiting to see if they can do something.

By the way, any suggestions to get LF to sweeten their offer? Also, will having a denial of loan from Lender #1 affect anything in terms of credit score, closing with Lender #2 (or a future refinancing)?
Lender 1 is feeling hurt, but they aren’t being competitive compared to where things are now. So it’s their prerogative if they want to just finish up and get the profit from the loan overall, or they the $500 and cut their “losses” and profit from this refi. There is no adverse effect to you for a denial.

LenderFi is quite particular to shopping around. Don’t be surprised that they don’t budge and very much act like Lender 1, even so far as to reply that they’ve processed your withdrawal since you “aren’t serious” about refinancing with them. They have very similar qualities to Lender 1.

The offer from Lender 2 is strong. Feel free to share their details for others if you are comfortable.
Sure - it's the least I can do after everything I have learned from this forum to save :moneybag :D

Lender # 2 is Union Savings Bank. They are a regional bank and they advertise $250 refinance on their website (https://usavingsbank.com/). They don't have online system to track loan status or anything like that, but my LO has been pleasant and prompt. He initially beat Lender #1 by offering 2.875% for $389 closing cost (A+B+C+E) and then matched LenderFi's rate of 2.5%, once I got a locked LE from them while with closing cost of $349. They service their own mortgage and have waived escrow for me. They locked my rate of 7/24 and the lock is good till 9/8. They have confirmed by email that they will extend the lock if the closing doesn't happen by then.

One downside I see is that it takes them 30 to 45 days to close. Some of you would probably be starting on your second refinance by then :P
Rjs
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Re: Refinance Mega Thread

Post by Rjs »

InvestDoc wrote: Mon Aug 17, 2020 6:41 pm
Rjs wrote: Mon Aug 17, 2020 1:24 pm
jimmyrules712 wrote: Mon Aug 17, 2020 1:00 pm
Rjs wrote: Mon Aug 17, 2020 12:55 pm Hi everyone,
Hoping to get some advice. I am in the process of refinancing my 30 year mortgage with Owning. We are scheduled to close this Thursday and they called about sending a notary home to sign some documents. This is the first time I am refinancing. Is the notary process normal? Any thing we should keep in mind before signing the documents?
Thanks as always for all your help and guidance.
All refinances always have to be signed and notarized in person so this is completely normal. Just make sure you find out in advance if they're expecting you to bring money to the closing and how much and in what payment form. If it's completely no cost then you don't have to worry about that but they still might need money to fund escrow, etc.
Thank you so much. It is a no cost refinance, but I will check with them and confirm if I need to bring money and in what payment form.
I refinanced recently with Owning. You will need to bring money to the table for the prepaid interest and if you are re-establishing an escrow account, or if the new loan amount is not enough to cover the loan payoff for your old lender. They sent a notary to my house but you should know that this notary does not work for Owning or the Escrow company, so you can't ask any questions about the documents while signing. I highly suggest reading everything in advance and asking your processor any questions before the notary gets there. Some of the pages won't be filled out and you'll have to fill them out while there (i.e. a list of your residences for the last 10 years as well as whether you want to avoid funding on a Monday which could cause interest to accrue on both loans over the weekend). It will take at least a couple weeks after signing for your loan to fund after you sign the papers. My loan processor never told me this so it caused a lot of frustration in having to call my new and old lender daily to find out what was going on. Finally, double and triple check your final closing statement which they will recalculate once the funding date is known. Mine was miscalculated (they charged me an extra day of interest on the new loan dated to before the loan was even opened) and I had to get a refund check issued.
Thanks for the detailed note on what to expect. I will review the closing statement and make sure everything looks right
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Sat Aug 29, 2020 12:03 am
need403bhelp wrote: Sat Aug 29, 2020 12:01 am Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.
Don’t forget the time value of money and potential inflation (if you believe we’d have inflation over the next 30 years).
So despite the overwhelming advice on this forum to go with lender #1, I'm still debating the two options.

My other though - I do have another loan app that I just recently locked with LoanDepot for 2.375% but not at zero cost. If I close with lender #1 this week, I could probably get a TMS statement in the next few weeks, and tell LoanDepot "hey, my underlying loan has changed." That way I could, theoretically, have my large cash in hand cake and eat my 2.375% rate also.

Anyone have any such experience with LoanDepot - i.e., switching mortgage loans in the (early) part of a refi? The LD agent did tell me it is taking close to 60 days to close.

Thanks!
manatee2005
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Re: Refinance Mega Thread

Post by manatee2005 »

no_username wrote: Sun Aug 30, 2020 3:44 am
Shikoku wrote: Sat Aug 29, 2020 2:56 pm My refinancing with Better for 30 year FRM at 2.5% has concluded. Sincere thanks to BrandonBogle and many other members who posted questions and shared their wisdom.
  • July 24: Submitted application using AMEX link.
  • August 2: Locked at 2.625% with high cost. Application moved from loan officer to loan processor immediately. Uploaded most of the documents and answered almost all the questions posed by the online system.
  • August 3: Loan moved to underwriting.
  • August 4: The loan processor matched two LEs. Rate dropped to 2.5% with lender credits covering all costs plus $500+ toward prepaids.
  • August 10: Obtained a quote for title insurance and settlement services from Radian. Better Mortgage matched the price by increasing the lender credit by $500+. This results in $1k+ lender credits toward prepaids.
  • August 13: File moved to underwriting team for final review.
  • August 14: File moved to closing expert.
  • August 20: Signed closing documents. Lender credit $1k- was used to lower the principal and $150+ was used as prepaids.
  • August 25: Fund disbursed.
  • August 28: Received a check for $2k as cash to borrower.
Ok so do you guys shop around until you sign your closing disclosure when the rate is dropping?
Is it a bad idea to walk away after submitting underwriting if you find better rate?
You can walk away up to 3 days after signing the documents with the notary (it’s the law). So walking away after submitting to underwriting shouldn’t be an issue
spammagnet
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Re: Refinance Mega Thread

Post by spammagnet »

We have a 115K balance on a 250K home, with stellar credit and strong income. Querying online mortgage companies for refinancing often results in no offers found. What's up with that? They don't want to bother with smaller loans?
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

spammagnet wrote: Sun Aug 30, 2020 7:39 pm We have a 115K balance on a 250K home, with stellar credit and strong income. Querying online mortgage companies for refinancing often results in no offers found. What's up with that? They don't want to bother with smaller loans?
Perhaps small loan balance
spammagnet
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Re: Refinance Mega Thread

Post by spammagnet »

bgh11 wrote: Sun Aug 30, 2020 8:08 pmPerhaps small loan balance
Maybe we should cash out, then pay back a large chunk. But our rate is already 2.875. The difference with a new loan would be small, I suspect.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

spammagnet wrote: Sun Aug 30, 2020 8:33 pm
bgh11 wrote: Sun Aug 30, 2020 8:08 pmPerhaps small loan balance
Maybe we should cash out, then pay back a large chunk. But our rate is already 2.875. The difference with a new loan would be small, I suspect.
Cash-out rate is higher than no cash-out refinance. Exploring local lenders might be another option.
"I don't worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, every sinner has a future." -- Warren Buffett
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

Shikoku wrote: Sun Aug 30, 2020 8:37 pm
spammagnet wrote: Sun Aug 30, 2020 8:33 pm
bgh11 wrote: Sun Aug 30, 2020 8:08 pmPerhaps small loan balance
Maybe we should cash out, then pay back a large chunk. But our rate is already 2.875. The difference with a new loan would be small, I suspect.
Cash-out rate is higher than no cash-out refinance. Exploring local lenders might be another option.
Agree. Check local credit unions and if you are open to 15 or even 10 yr.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

need403bhelp wrote: Sun Aug 30, 2020 6:54 pm
BrandonBogle wrote: Sat Aug 29, 2020 12:03 am
need403bhelp wrote: Sat Aug 29, 2020 12:01 am Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.
Don’t forget the time value of money and potential inflation (if you believe we’d have inflation over the next 30 years).
So despite the overwhelming advice on this forum to go with lender #1, I'm still debating the two options.

My other though - I do have another loan app that I just recently locked with LoanDepot for 2.375% but not at zero cost. If I close with lender #1 this week, I could probably get a TMS statement in the next few weeks, and tell LoanDepot "hey, my underlying loan has changed." That way I could, theoretically, have my large cash in hand cake and eat my 2.375% rate also.

Anyone have any such experience with LoanDepot - i.e., switching mortgage loans in the (early) part of a refi? The LD agent did tell me it is taking close to 60 days to close.

Thanks!
I logged into my loanDepot account and still see my locked 2.375% with $1k in closing costs. If only they would actually let me proceed with that! They made it clear to me when doing refi # 2 that they must withdraw my app if I proceeded with another lender. However, I was further away from closing than you are.
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