Refinance Mega Thread

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need403bhelp
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Joined: Thu May 28, 2015 6:25 pm

Re: Refinance Mega Thread

Post by need403bhelp »

BrandonBogle wrote: Sun Aug 30, 2020 10:47 pm
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.
I see. Thanks for sharing your experience.
presto987
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Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

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!
First post here, but I've been following this thread religiously for the last month.

I agree with everyone else that lender #1 is a no-brainer. Why? Because you are netting close to $4000 and still have the optionality of refinancing again at a lower rate if available. Worst case scenario, if you cannot get a 2.375% low/no cost deal for refi #2, you can use some of the $4000 that you made during refi #1 toward refi #2's closing costs and still come out ahead compared to doing one refi with lender #2. Heck, by using the $4000 you made on refi #1, maybe you can even buy down refi #2's rate to 2.25%! That would be a real win, and the only cost would be the time/effort of having to refi twice.

I do like the idea of what you're suggesting doing with Loan Depot. It sounds like it should be possible, but I don't have any specific knowledge about that. How would they know that your loan has changed?

The 60-day timing would be good, because it should be long enough to get your TMS statement, but short enough to avoid the December 1 Fannie Mae fee getting priced into your loan.

BTW, would appreciate a PM if you're willing to share who lender #2 is, and also from which lenders you got LE's to price match with Better, lender #2, and Loan Depot. Thanks!
Last edited by presto987 on Sun Aug 30, 2020 11:22 pm, edited 1 time in total.
Artman910
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Re: Refinance Mega Thread

Post by Artman910 »

BrandonBogle wrote: Fri Aug 28, 2020 8:24 pm
jjhk121 wrote: Fri Aug 28, 2020 7:18 pm I'm confused about having to pay property taxes at closing if you close within 60 days of when your property taxes are due.

I'm currently on schedule to close with LenderFi around Sept. 5th which is within 60 days of when my first property tax payment would be due, Nov. 1st.

I don't have an escrow account.

Will I have to come to closing with that first property tax payment? My county doesn't even send the bill until late September.
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?!?

In my area, the bill is “due” Sept 1, but there is no penalty until January 2nd. So a settlement agent or lender may take the tact that the bill isn’t really due until over 60 days, or they may go by the “due” date on the initial bill.
Yeap im doing my refi with LenderFi and since i have about 4k in escrow already to pay for my taxes which are due in Nov. so during the initial disclosure they allocated 9 months of taxes since doing the refi my current escrow should be returned to me and thus they need the amount to pay the property tax.
Hoosier CPA
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Re: Refinance Mega Thread

Post by Hoosier CPA »

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
That's who I am currently with - USB. Have a 20 year 3.0%. What did you get the 2.875% on - a 30 year? I'm working on a 2.875% 30 year with Better.com. I'm really doing it for 2 purposes - the $2,500 amex credit and the flexibility I'd get with a 30. I intend to follow the 20 year amortization. I've been with USB for about 12 years over 2 houses. I like working with them.
fkruegelp5
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Re: Refinance Mega Thread

Post by fkruegelp5 »

Just closed today with my local mortgage company. I shopped around online with LenderFi, Better, and etc., but ended up going with my local mortgage officer who I worked with before. No fees -- 30 years @ 2.625%. Thank you everyone for the info.
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seeingeyestrike
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Re: Refinance Mega Thread

Post by seeingeyestrike »

Anyone refinance with LenderFi, sign the clawback agreement, and then refinance again within 6 months? I know there was talk a few pages back on how enforceable it was, and I also saw a few people in the thread who refinanced with LF since we did report not having to sign any clawback. We closed at the end of July (15 year, 2.5%). I'm still leaning toward my original plan of waiting until January and seeing what things are like, but the 0.5% fee going into effect in December is tempting me to start up another refinance before then.
FS51
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Re: Refinance Mega Thread

Post by FS51 »

Helping a friend through a refi now and I didn't realize his LTV was over 80% so it includes PMI. He's started getting his first LEs and they've been pretty solid. No cost ABCE - Lender Credits = 0 and 2.625% rate. What I'm running into that I don't fully understand as I haven't dealt with it before is the PMI calculations and PMI cancellation.

He currently is at 3.75% with lender paid PMI so he isn't really sure what his current PMI really is. LenderFI doesn't offer lender paid PMI but they did adjust his appraisal significantly higher and waived the appraisal. They now have him at about an 85% LTV. They list PMI as $71/mo which seems very low on about 450k loan. When asked how it was calculated and could it change they responded it should be "fairly accurate." They said he shouldn't do lender paid PMI at sub 90% LTV as it'll drop off so quickly. Will it drop off without a new appraisal confirming the home's value? I don't want to put my friend into what looks like a great situation only to find out his current payments with lender paid PMI would actually be less than the new ones if his PMI is calculated incorrectly.

Anyone have any experience with this?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

FS51 wrote: Mon Aug 31, 2020 10:57 am He currently is at 3.75% with lender paid PMI so he isn't really sure what his current PMI really is. LenderFI doesn't offer lender paid PMI but they did adjust his appraisal significantly higher and waived the appraisal. They now have him at about an 85% LTV. They list PMI as $71/mo which seems very low on about 450k loan. When asked how it was calculated and could it change they responded it should be "fairly accurate." They said he shouldn't do lender paid PMI at sub 90% LTV as it'll drop off so quickly. Will it drop off without a new appraisal confirming the home's value? I don't want to put my friend into what looks like a great situation only to find out his current payments with lender paid PMI would actually be less than the new ones if his PMI is calculated incorrectly.
I am unfamiliar with PMI, but as a guess, I suspect he will have to pay until he reaches 78% LTV based on the estimated value. But I honestly don’t know if an appraisal would be waived in a scenario like this. If it isn’t, there is risk that LenderFi is incorrect in their guess and LTV won’t be 85%.
Artman910
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Re: Refinance Mega Thread

Post by Artman910 »

FS51 wrote: Mon Aug 31, 2020 10:57 am Helping a friend through a refi now and I didn't realize his LTV was over 80% so it includes PMI. He's started getting his first LEs and they've been pretty solid. No cost ABCE - Lender Credits = 0 and 2.625% rate. What I'm running into that I don't fully understand as I haven't dealt with it before is the PMI calculations and PMI cancellation.

He currently is at 3.75% with lender paid PMI so he isn't really sure what his current PMI really is. LenderFI doesn't offer lender paid PMI but they did adjust his appraisal significantly higher and waived the appraisal. They now have him at about an 85% LTV. They list PMI as $71/mo which seems very low on about 450k loan. When asked how it was calculated and could it change they responded it should be "fairly accurate." They said he shouldn't do lender paid PMI at sub 90% LTV as it'll drop off so quickly. Will it drop off without a new appraisal confirming the home's value? I don't want to put my friend into what looks like a great situation only to find out his current payments with lender paid PMI would actually be less than the new ones if his PMI is calculated incorrectly.

Anyone have any experience with this?
My initial morgage when purchasing this home was 549K loan with 4.875% and a pmi of 380....I refinanced like 6 months after for 30yr 523K and my PMI dropped to 98-100 a month. at 4.375 and I had a ltv of 86% at the time.

My current LenderFi LE is 2.625 and no PMI as my home value is near 670K ie their estimate was 677K and so my ltv is 75 or so current loan is 507K and so my new loan will not have PMI but their PMI of 71 sounds about right compared to what im paying.
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

Hoosier CPA wrote: Mon Aug 31, 2020 9:13 am
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
That's who I am currently with - USB. Have a 20 year 3.0%. What did you get the 2.875% on - a 30 year? I'm working on a 2.875% 30 year with Better.com. I'm really doing it for 2 purposes - the $2,500 amex credit and the flexibility I'd get with a 30. I intend to follow the 20 year amortization. I've been with USB for about 12 years over 2 houses. I like working with them.
Everything I described above is for 30 yr term. I didn't look at anything else, to be honest.
Bob_Sacamano
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Re: Refinance Mega Thread

Post by Bob_Sacamano »

ChiKid24 wrote: Fri Aug 21, 2020 5:21 pm
Bob_Sacamano wrote: Fri Aug 21, 2020 4:03 pm
Bob_Sacamano wrote: Fri Aug 21, 2020 7:57 am
InvestDoc wrote: Thu Aug 20, 2020 10:41 pm
Bob_Sacamano wrote: Thu Aug 20, 2020 10:23 pm

So are the prepaids and escrow partly why my loan balance went up? I guess I'm wondering now if there might have been a mistake or I was misled somehow? And if I should refinance again to correct it.
I'd pull out your final loan closing statement and see why the cost was so high. I am not sure whether whether you can roll your initial escrow/prepaids into the loan, but if that's allowed it could potentially explain why your loan balance went up by about $8K. Your lender's comment about being "by the book" is a bit concerning though and I wonder if it was meant to mislead you. If you look at the loan estimate there are multiple sections: section A is the lender fees (i.e. points, underwriting, processing application) which are set by the lender and can vary between lenders. Section B is the "Services you cannot shop for" which usually includes the appraisal and again can vary depending on the appraisal company, and Section C is "Services you can shop for" which is the title fees. You can choose to use the lender's title company or you can shop around and find your own title company that might have lower fees.

With regards to wanting to "correct the mistake", I wouldn't look at it that way but rather see if it's possible to get a lower rate for a low cost. If you can find a lower rate with enough lender credits to essentially make it a no-cost loan, I don't see much of a reason not to refinance. However, if you'll be paying another several thousand dollars to refinance, you'll want to make sure that your interest rate drops enough to save you enough money to recoup those costs within a reasonable time frame. You should be able to get low 3's or even <3% as a no cost or very little cost loan based on what others are posting here, so it might make sense to refinance again while rates are at all time lows.
This is from the original loan:
https://imgur.com/MowjZdQ
Can someone help me determine why my costs were so high and whether I should refinance again to cut my losses?
Yeah, hate to say this to you now since it's already closed, but you got screwed. So many awful things on this loan estimate. Let me go throw them by section on your estimate:

1. Anything in Section A is negotiable and can easily be $0 if you shop around. There is no reason why you should pay an Admin or Processing Fee, these are junk fees. Lenders make money on interest rate spreads, they don't need to charge junk fees. The Points in this section also seem high. People pay points to buy down a rate. Your rate on this was 3.75% which to me doesn't sound like it's below where the market was in Dec 2019.

2. Section B costs typically can't be negotiated. That said, the lender can waive an appraisal, especially if your loan to value is low enough. In your case that's not really an option since you are at a really high LTV of 88%. The other thing in this section that many of us don't have is PMI (listed on line B04). PMI is a Private Mortgage Insurance policy that protects the lender in case you default. It's typically required by lenders if your LTV is above 80% which yours is at 88%. So essentially you are buying insurance for them! This can be avoided by getting your LTV below 80%, which given your $200k home value would mean your loan needs to be no greater than $160k. Your old loan was at $171k so you were only $11k away from getting below the threshold. If you eliminated the $2,501.82 fees you paid in Section A and $1,486.92 in PMI from Section B you would have been able to put this $4k towards principal and only needed to come up with another $7k to get below 80%

3. Sections C and E look pretty reasonable to me, but they really depend on where you live. Note that you can shop around for Section C items by calling title companies and seeing if they can come in lower than the default company this lender used. Perhaps you save a few hundred here, but in my market the costs in your estimate look fine

4. Sections F and G are typically things you would be paying anyway at some point in the next year (property taxes, homeowners insurance, interest on the loan, etc.), so I usually don't worry a ton about these items. That said, I do check the math to see if it makes sense. Your prepaid interest in line F03 looks high to me. You said the new loan balance was $176k at 3.75%. That means annual interest is $6,600 ($176k x 3.75%). Typically lenders take this number and divide by 365 to calculate a daily interest charge. For you that would be 6,600/365 = $18.0822/day. For some reason they are charging you $23.4123/day. Over 30 days, this means you are paying about $160 too much in prepaid interest. The other thing that is making your loan pricier than many of us is you also pay City Property taxes and a monthly sanitation tax. That's not something I've seen.

5. Your Section H is something I really can't opine on as I have never seen these. But for some reason you are being charged a bunch of HOA fees. Perhaps that's due to this being a condo? Maybe others can opine. You are also paying $550 for a Title Policy for yourself. This is something I don't think is necessary, but perhaps there is something unique for this situation.

All in all, you definitely overpaid for this refinance. I'd definitely bring it up to me "friend" who brokered this introduction. Perhaps he's been getting taken by this lender as badly as you have. My recommendation would be to read as much of this thread as you can and shop for a new refinance with one of the lenders constantly being mentioned (Lenderfi, Better, Loan Cabin, Loan Depot, Watermark, etc.). You can definitely come down from 3.75% and do so with little or nothing out of pocket.
Hi sorry I didn't get back to you on this. I started an application with Better and here's what I'm seeing.

$171,013 loan, 799 TransUnion credit score
30 year
3.375% $811 points $756/mo
3.250% $1,543 $744
3.125% $2,796 $733

20 year
3.375% $322 points $981/mo
3.250% $1,050 $970
3.125% $2,023 $959
3.000% $2,731 $948

Current loan for reference
$171,013, 30 years, 3.750%, $822/mo ($973 with PMI and taxes)

The break-even on the points is 4yrs+ which is a little long but costs are rolled in, does it really matter that much? I'm also considering now a 20 year loan. I'm confident I can make the payments but I have to weigh that against investing the difference.

Should I refinance?
newbie20
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Re: Refinance Mega Thread

Post by newbie20 »

BrandonBogle wrote: Sun Aug 30, 2020 11:25 am
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.
You were right, BrandonBogle. I got an email from LenderFi today saying that they won't match price or change any terms once you are locked with them. The only thing they will do is withdraw your application.

Do you think I should leave that loan app open with LF for as long as they let me until I can get a closing scheduled with USB (my Lender #2)? I don't have any doubt that USB will follow through but I don't want to lose out on this altogether, either :?
Xrayman69
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Re: Refinance Mega Thread

Post by Xrayman69 »

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!
In process with LD as well. 2.25% for 15 year conventional loan amount. 2.5K credit. I can’t recall how much the various costs will cost. We currently have 3.75% with about 20 years years left. Started process around August 10. No word as to how long but file states currently no additional paperwork needed.
Hoosier CPA
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Joined: Tue Nov 22, 2016 9:43 pm

Re: Refinance Mega Thread

Post by Hoosier CPA »

newbie20 wrote: Mon Aug 31, 2020 12:41 pm
Hoosier CPA wrote: Mon Aug 31, 2020 9:13 am
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
That's who I am currently with - USB. Have a 20 year 3.0%. What did you get the 2.875% on - a 30 year? I'm working on a 2.875% 30 year with Better.com. I'm really doing it for 2 purposes - the $2,500 amex credit and the flexibility I'd get with a 30. I intend to follow the 20 year amortization. I've been with USB for about 12 years over 2 houses. I like working with them.
Everything I described above is for 30 yr term. I didn't look at anything else, to be honest.
Thanks. That's very helpful.
jco
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Re: Refinance Mega Thread

Post by jco »

I currently have $270,000 left on a 3.375% 30-year mortgage that I refinanced in March. My loan-to-value ration is about 57%. I started the refinance process over the weekend and have started to get some quotes. I'm not getting the incredible rates that others are, but still a nice improvement, and I'm trying to make a plan to get the best rate possible. I have not heard from LenderFi, Loan Cabin, Watermark, or Loan Depot. With the exception of LenderFi, I don't expect to hear from them for several weeks.

I did receive an email from a LenderFi representative who believed they could get me a 30-year 2.875% at no-cost (Lender Credit cover A+B+C+E), but I haven't had a chance to get an LE.

Otherwise, the best offer I have is a no cost 30-year at 3% with no appraisal. Since Better.com (who is currently uncompetitive) will consider matching an LE no more than 1 day old, I'm thinking I wait through tomorrow to see who else I hear from. Depending on what the best offer is, contact Better.com and see if they will beat the no-more-than-1-day-old LE, that way I have an improved rate locked in. If I get better offers down the road, I can again ask Better.com to beat them or walk.

Does this seem like a reasonable plan? Are they issues (like have to pay for an appraisal) or a depsoit that I'm not considering?

Thanks!
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

jco wrote: Mon Aug 31, 2020 2:59 pm I currently have $270,000 left on a 3.375% 30-year mortgage that I refinanced in March. My loan-to-value ration is about 57%. I started the refinance process over the weekend and have started to get some quotes. I'm not getting the incredible rates that others are, but still a nice improvement, and I'm trying to make a plan to get the best rate possible. I have not heard from LenderFi, Loan Cabin, Watermark, or Loan Depot. With the exception of LenderFi, I don't expect to hear from them for several weeks.

I did receive an email from a LenderFi representative who believed they could get me a 30-year 2.875% at no-cost (Lender Credit cover A+B+C+E), but I haven't had a chance to get an LE.

Otherwise, the best offer I have is a no cost 30-year at 3% with no appraisal. Since Better.com (who is currently uncompetitive) will consider matching an LE no more than 1 day old, I'm thinking I wait through tomorrow to see who else I hear from. Depending on what the best offer is, contact Better.com and see if they will beat the no-more-than-1-day-old LE, that way I have an improved rate locked in. If I get better offers down the road, I can again ask Better.com to beat them or walk.

Does this seem like a reasonable plan? Are they issues (like have to pay for an appraisal) or a depsoit that I'm not considering?

Thanks!
Seems very reasonable to me
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

jco wrote: Mon Aug 31, 2020 2:59 pm Otherwise, the best offer I have is a no cost 30-year at 3% with no appraisal. Since Better.com (who is currently uncompetitive) will consider matching an LE no more than 1 day old, I'm thinking I wait through tomorrow to see who else I hear from. Depending on what the best offer is, contact Better.com and see if they will beat the no-more-than-1-day-old LE, that way I have an improved rate locked in. If I get better offers down the road, I can again ask Better.com to beat them or walk.

Does this seem like a reasonable plan? Are they issues (like have to pay for an appraisal) or a depsoit that I'm not considering?
It sounds like you may have already done this, but I would open the application with Better today so things can settle on getting you assigned to a loan officer, and then tomorrow follow up with a competing offer. That way you don’t spend time tomorrow getting spun around to find someone.

That said, Better, if they beat an offer, will typically be by $100 nowadays. So you may want to just stick with LenderFi when they get you the loan estimate.
Soares1234
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Re: Refinance Mega Thread

Post by Soares1234 »

fkruegelp5 wrote: Mon Aug 31, 2020 10:12 am Just closed today with my local mortgage company. I shopped around online with LenderFi, Better, and etc., but ended up going with my local mortgage officer who I worked with before. No fees -- 30 years @ 2.625%. Thank you everyone for the info.
Can you share lender or PM me? Thank you!
m7a8a6
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Re: Refinance Mega Thread

Post by m7a8a6 »

Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
CycloRista
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Re: Refinance Mega Thread

Post by CycloRista »

I haven't read all of last few pages of the thread so apologies if this is repeating...

I just spoke to my mortgage broker. He said the Fannie Mae / Freddy Mac "tax" of +.5% on refinance loans will not kick in until October. What that means is I'm (no-cost) refinancing for the second time this year.

Going from 20-year fixed @3.25% to 30-year @2.94% on non-jumbo money with sufficient LTV such that no appraisal is required (which nets an additional ~$700 out of the lower monthly payment). I'm planning on investing all of those additional funds in what I think will be a sinkhole far worse than what occurred during The Great Recession to maximize the upside :mrgreen:
e5116
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Re: Refinance Mega Thread

Post by e5116 »

I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
are you doing an escrow/impound account? Glad to hear rates are back down.. i'm locked at the same rate but will blow past my rate lock expiration tomorrow. Losing faith on LenderFi's ability to execute / honor the rate. They came back to me one time for more information and sent me back into the underwriting queue. We'll see.
e5116
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Re: Refinance Mega Thread

Post by e5116 »

Goal33 wrote: Mon Aug 31, 2020 5:00 pm
e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
are you doing an escrow/impound account? Glad to hear rates are back down.. i'm locked at the same rate but will blow past my rate lock expiration tomorrow. Losing faith on LenderFi's ability to execute / honor the rate. They came back to me one time for more information and sent me back into the underwriting queue. We'll see.
Yes, it required escrow to get that rate.
m7a8a6
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Re: Refinance Mega Thread

Post by m7a8a6 »

presto987 wrote: Mon Aug 31, 2020 4:58 pm
m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Same rate. They are using National Title Solutions.

Alright, let me see what I can find in NJ. Should I have this in place before moving forward?
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
Great rate. Take it! At least with LenderFi you know they will get you to closing.

Did you apply at LenderFi or did they contact you as part of their rate guarantee program?
presto987
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Re: Refinance Mega Thread

Post by presto987 »

m7a8a6 wrote: Mon Aug 31, 2020 5:07 pm
presto987 wrote: Mon Aug 31, 2020 4:58 pm
m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Same rate. They are using National Title Solutions.

Alright, let me see what I can find in NJ. Should I have this in place before moving forward?
If LenderFi is offering the same rate, you might just want to go with them and save yourself the trouble with LC, especially considering LC is going to take a long time to close. If you do want to go through the trouble (and I can't blame you if you do!), then you'll probably want to get a quote or two from title companies before moving forward, just to make sure you'll be able to get the title cost down enough to warrant going with LC. The good news is that some title companies offer instant quotes directly through their website. Once you have a rough idea, then you should be good to move forward, even if you haven't identified the exact title company you want to use.

If you check out the link below, there is a PDF on the webpage that lists NJ title insurance companies (page 3):
https://njlta.org/page/RateManual

There are a lot more title companies than this, but these are the ones that all of them are using to underwrite the title insurance line item.

I get the impression that LenderFi has done a good job identifying low-cost title companies. I am in CA, and my LenderFi LE showed very competitive costs for title. They were using Amrock (note that when I got a quote from Amrock directly, the quote was good but not as great as what LenderFi must have negotiated with them).

Can you post the breakdown of A, B, C, and E for the two lenders? I think the title insurance cost doesn't vary too much because it's regulated, but there is probably a difference in settlement cost and various misc fees. Also, E should ultimately wind up being the same regardless of who you go with. In my case, I got LE's where E ranged from $178 to $260 to $328, but my final E wound up being $139. The company I actually refi'd with had $328 for E, so I netted almost $200 more than what my LE had suggested.
e5116
Posts: 621
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Re: Refinance Mega Thread

Post by e5116 »

anon_investor wrote: Mon Aug 31, 2020 5:21 pm
e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
Great rate. Take it! At least with LenderFi you know they will get you to closing.

Did you apply at LenderFi or did they contact you as part of their rate guarantee program?
Thanks!

I contacted them. Took a few attempts, but was speedy once I got a reply. They are definitely swamped right now. The "rate guarantee program" is basically the same as a normal refi, but perhaps more streamlined given they already have a lot of my information from the prior refi. Note that my fees were just north of $1k (appraisal waived) so they didn't have to give that much lender credit to compensate to make it no cost. That probably also was a factor in the rate.
Hugo Township
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Re: Refinance Mega Thread

Post by Hugo Township »

e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
That sounds like a pretty good experience. Truth be told, I accepted a slightly higher rate from LenderFi even after Better offered a (heh) slightly better deal because I didn't want to burn any bridges with LenderFi.
m7a8a6
Posts: 19
Joined: Mon Aug 17, 2020 8:25 pm

Re: Refinance Mega Thread

Post by m7a8a6 »

presto987 wrote: Mon Aug 31, 2020 5:27 pm
m7a8a6 wrote: Mon Aug 31, 2020 5:07 pm
presto987 wrote: Mon Aug 31, 2020 4:58 pm
m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Same rate. They are using National Title Solutions.

Alright, let me see what I can find in NJ. Should I have this in place before moving forward?
If LenderFi is offering the same rate, you might just want to go with them and save yourself the trouble with LC, especially considering LC is going to take a long time to close. If you do want to go through the trouble (and I can't blame you if you do!), then you'll probably want to get a quote or two from title companies before moving forward, just to make sure you'll be able to get the title cost down enough to warrant going with LC. The good news is that some title companies offer instant quotes directly through their website. Once you have a rough idea, then you should be good to move forward, even if you haven't identified the exact title company you want to use.

If you check out the link below, there is a PDF on the webpage that lists NJ title insurance companies (page 3):
https://njlta.org/page/RateManual

There are a lot more title companies than this, but these are the ones that all of them are using to underwrite the title insurance line item.

I get the impression that LenderFi has done a good job identifying low-cost title companies. I am in CA, and my LenderFi LE showed very competitive costs for title. They were using Amrock (note that when I got a quote from Amrock directly, the quote was good but not as great as what LenderFi must have negotiated with them).

Can you post the breakdown of A, B, C, and E for the two lenders? I think the title insurance cost doesn't vary too much because it's regulated, but there is probably a difference in settlement cost and various misc fees. Also, E should ultimately wind up being the same regardless of who you go with. In my case, I got LE's where E ranged from $178 to $260 to $328, but my final E wound up being $139. The company I actually refi'd with had $328 for E, so I netted almost $200 more than what my LE had suggested.

Thank you. I'm thinking maybe do a bit of search tonight on title companies and see if I can find anything near the same cost as LenderFi.

I'm kinda leaning towards LenderFi too...but the difference is decent if title services were similar (or even close).

Here is a breakdown of LC: Total Loan Cost: $1,263...
A: $0

B: $250
HOA Certification Handling Fee $250

C: $2,563
Title - Closing Protection Letter $75
Title - Coordination Fee $625
Title - Lender’s Endorsements $150
Title - Lender’s Title Insurance $1,158
Title - Municipal Lien Search $48
Title - Preparation of Notice of Settlement $65
Title - Recording Services $65
Title - Settlement Fee $75
Title - Tax Certificate $35
Title - Title Examination $100
Title - Title Search $150
Title - Upper Court Search $17

E: $450
Recording Fees and Other Taxes $450

Credits: $2000

---------------

Here is Lender Fi: Total Loan Cost = $1,261
A: $0

B: $217
Credit Report $65
Flood Certification $13
Tax Service $64
Verification Fee $75

C: $1,270
Title - ALTA 4.1 Condominium Fee $25
Title - ALTA 8.1 Environmental Protection Lien Fee $25
Title - Closing Full Escrow 1st Mortgage $325
Title - Courier $45
Title - Insured Closing Protection Letter Fee $75
Title - Lender's Title Insurance $650
Title - Notary $25
Title - Title Insurance Services $100

E: $375
Recording Fees and Other Taxes $375

Credits: $581
catvado
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Re: Refinance Mega Thread

Post by catvado »

e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in March (was @3.125%). A+B+C+E-Lender Credits = -$30...
I'm in a similar boat. Locked at 2.5% for 30y with LenderFi last Friday, with credits to cover A+B+C+E. Also have excellent credit and relatively low LTV. When I initially filled out the LF application online I was quoted 2.625% for no costs, so the LE with a lower rate was a very nice surprise!

I'll second what others have said about LenderFi really not wanting to deal with comparison shopping. When I locked my rate I got a bit of a lecture about it. I filled out the web forms for Loan Cabin and Loan Depot at the same time as LenderFi, but haven't yet heard from either. I'm feeling good about 2.5% and doubt they will beat it anyhow.

I also applied online with Quicken/Rocket Mortgage. The representative there told me that to get 2.625% would require 2+ points. About LF's LE, she said, "If they can actually do that I would lock in." :D
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anon_investor
Posts: 3753
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Re: Refinance Mega Thread

Post by anon_investor »

e5116 wrote: Mon Aug 31, 2020 5:30 pm
anon_investor wrote: Mon Aug 31, 2020 5:21 pm
e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
Great rate. Take it! At least with LenderFi you know they will get you to closing.

Did you apply at LenderFi or did they contact you as part of their rate guarantee program?
Thanks!

I contacted them. Took a few attempts, but was speedy once I got a reply. They are definitely swamped right now. The "rate guarantee program" is basically the same as a normal refi, but perhaps more streamlined given they already have a lot of my information from the prior refi. Note that my fees were just north of $1k (appraisal waived) so they didn't have to give that much lender credit to compensate to make it no cost. That probably also was a factor in the rate.
Curious, how did you go about trying to contact LenderFi this time. I did a 2.75% 30yr fixed no cost refi with LenderFi in July and plan to try to refi again next year with them if rates are still low.
WhyRWeHere
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Re: Refinance Mega Thread

Post by WhyRWeHere »

m7a8a6 wrote: Mon Aug 31, 2020 5:07 pm
presto987 wrote: Mon Aug 31, 2020 4:58 pm
m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Same rate. They are using National Title Solutions.

Alright, let me see what I can find in NJ. Should I have this in place before moving forward?
Just in case you weren't aware, in nj (and in many/most? other states) you can get a reissue rate on title insurance. In nj, you need to have received title insurance within 10 years of your refi. Just provide a copy of your title policy to the LO and ask to have the reissue rate applied. I would wait until you get the costs down and as much lender credits that you can, and then bring this up. It's not something that needs to be done early in the process.
postal007
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Joined: Thu Feb 27, 2020 2:29 am

Re: Refinance Mega Thread

Post by postal007 »

Just wanted to give another data point here, since this thread is so helpful.

State: CA
Loan Amount: $565k
LTV: ~40%
Current Rate: 2.85% (First Republic) on a 30 year fixed

I had just refied earlier this year with First Republic, but rates kept dropping, so was looking for a no-cost refi on another 30-year fixed. Of the lenders I contacted, here's what I got on Friday:

Owning: 2.625%, no cost
LenderFi: 2.75%, no cost. Followed up today and said they can't match Owning offer on a no-cost
Loan Depot: 2.825%, $500 costs. Reaching out soon to ask for a match
Better: Uncompetitive. Told me to take the Owning offer and run for the hills.

I'm planning to forward the Owning LE to First Republic soon to see if they can do some kind of loan modification, but trying out a few other lenders to see if I can get it lower before I do.
e5116
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Re: Refinance Mega Thread

Post by e5116 »

anon_investor wrote: Mon Aug 31, 2020 6:38 pm
e5116 wrote: Mon Aug 31, 2020 5:30 pm
anon_investor wrote: Mon Aug 31, 2020 5:21 pm
e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
Great rate. Take it! At least with LenderFi you know they will get you to closing.

Did you apply at LenderFi or did they contact you as part of their rate guarantee program?
Thanks!

I contacted them. Took a few attempts, but was speedy once I got a reply. They are definitely swamped right now. The "rate guarantee program" is basically the same as a normal refi, but perhaps more streamlined given they already have a lot of my information from the prior refi. Note that my fees were just north of $1k (appraisal waived) so they didn't have to give that much lender credit to compensate to make it no cost. That probably also was a factor in the rate.
Curious, how did you go about trying to contact LenderFi this time. I did a 2.75% 30yr fixed no cost refi with LenderFi in July and plan to try to refi again next year with them if rates are still low.
Email direct to my prior loan officer. I agree that LenderFi really doesn't want you to rate shop and also generally won't change any terms once you've locked (e.g. won't float down rates). Overall though, have had good experiences....we shall see.

Seems like they also changed their title company. No more Amrock for me....
Last edited by e5116 on Mon Aug 31, 2020 6:49 pm, edited 2 times in total.
presto987
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Joined: Sun Aug 30, 2020 10:58 pm

Re: Refinance Mega Thread

Post by presto987 »

Holy cow. To me it looks like there are a lot of redundant or unnecessary fees in LC's LE.

In addition to poking around some websites, you could try requesting a quote from Amrock. I just had to email clientrelations@amrock.com with the address, loan amount, name of lender, and the fact that it's a refinance. It took them 2 days to get back to me. I have heard mixed reviews about their service, but at least you would have another title quote in hand, which should hopefully be competitive.

Also, Amrock estimated the section E cost spot on for me. Lenders always overshoot on that number, because they can't increase it after the fact, but they can decrease it. So any differences between LF and LC on section E can be ignored.
presto987
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Re: Refinance Mega Thread

Post by presto987 »

postal007 wrote: Mon Aug 31, 2020 6:42 pm Just wanted to give another data point here, since this thread is so helpful.

State: CA
Loan Amount: $565k
LTV: ~40%
Current Rate: 2.85% (First Republic) on a 30 year fixed

I had just refied earlier this year with First Republic, but rates kept dropping, so was looking for a no-cost refi on another 30-year fixed. Of the lenders I contacted, here's what I got on Friday:

Owning: 2.625%, no cost
LenderFi: 2.75%, no cost. Followed up today and said they can't match Owning offer on a no-cost
Loan Depot: 2.825%, $500 costs. Reaching out soon to ask for a match
Better: Uncompetitive. Told me to take the Owning offer and run for the hills.

I'm planning to forward the Owning LE to First Republic soon to see if they can do some kind of loan modification, but trying out a few other lenders to see if I can get it lower before I do.
Have you (or anyone else) looked at Interactive Mortgage? They are showing 2.5% no cost for 30-year up to the super conforming limit. Seems like one of the best rates out there, but I haven't heard any reviews.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

presto987 wrote: Mon Aug 31, 2020 6:47 pm Holy cow. To me it looks like there are a lot of redundant or unnecessary fees in LC's LE.

In addition to poking around some websites, you could try requesting a quote from Amrock. I just had to email clientrelations@amrock.com with the address, loan amount, name of lender, and the fact that it's a refinance. It took them 2 days to get back to me. I have heard mixed reviews about their service, but at least you would have another title quote in hand, which should hopefully be competitive.

Also, Amrock estimated the section E cost spot on for me. Lenders always overshoot on that number, because they can't increase it after the fact, but they can decrease it. So any differences between LF and LC on section E can be ignored.
I think Amrock is the default title company for LenderFi.
e5116
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Re: Refinance Mega Thread

Post by e5116 »

anon_investor wrote: Mon Aug 31, 2020 6:58 pm
presto987 wrote: Mon Aug 31, 2020 6:47 pm Holy cow. To me it looks like there are a lot of redundant or unnecessary fees in LC's LE.

In addition to poking around some websites, you could try requesting a quote from Amrock. I just had to email clientrelations@amrock.com with the address, loan amount, name of lender, and the fact that it's a refinance. It took them 2 days to get back to me. I have heard mixed reviews about their service, but at least you would have another title quote in hand, which should hopefully be competitive.

Also, Amrock estimated the section E cost spot on for me. Lenders always overshoot on that number, because they can't increase it after the fact, but they can decrease it. So any differences between LF and LC on section E can be ignored.
I think Amrock is the default title company for LenderFi.
I got a different one. Not sure if they're still using Amrock or not. Maybe they're doing multiple title companies or they've switched.
Last edited by e5116 on Mon Aug 31, 2020 7:03 pm, edited 1 time in total.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

e5116 wrote: Mon Aug 31, 2020 6:47 pm
anon_investor wrote: Mon Aug 31, 2020 6:38 pm
e5116 wrote: Mon Aug 31, 2020 5:30 pm
anon_investor wrote: Mon Aug 31, 2020 5:21 pm
e5116 wrote: Mon Aug 31, 2020 4:37 pm I just locked a no-cost refi with LenderFi @2.5% (30 year) having gone through the process with them in February/March (was @3.125%). A+B+C+E-Lender Credits = -$30. My numbers (credit score, LTV, loan amount) are pretty optimal I think for a good rate. I didn't have to fill out a new application. Contacted my prior loan officer and he simply sent me the rate and then initiated the process when I said to move forward. I simply had to sign the new disclosures. Seems pretty easy/seamless so far given I've already done it once with them.

Didn't seem worthwhile shopping around as I want to get it done pretty fast and the rate seemed more than competitive. Seems like 2.5% has been the general floor for no cost (admittedly a few have gotten more cash back/AMEX credit) or occasionally a 2.375 if situations are perfect/pay a bit of points.
Great rate. Take it! At least with LenderFi you know they will get you to closing.

Did you apply at LenderFi or did they contact you as part of their rate guarantee program?
Thanks!

I contacted them. Took a few attempts, but was speedy once I got a reply. They are definitely swamped right now. The "rate guarantee program" is basically the same as a normal refi, but perhaps more streamlined given they already have a lot of my information from the prior refi. Note that my fees were just north of $1k (appraisal waived) so they didn't have to give that much lender credit to compensate to make it no cost. That probably also was a factor in the rate.
Curious, how did you go about trying to contact LenderFi this time. I did a 2.75% 30yr fixed no cost refi with LenderFi in July and plan to try to refi again next year with them if rates are still low.
Email direct to my prior loan officer. I agree that LenderFi really doesn't want you to rate shop and also generally won't change any terms once you've locked (e.g. won't float down rates). Overall though, have had good experiences....we shall see.

Seems like they also changed their title company. No more Amrock for me....
Wait not Amrock? They used Amrock in July when I closed. Although I heard they added a few other companies to use since they were so swamped.
ChiKid24
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Re: Refinance Mega Thread

Post by ChiKid24 »

Bob_Sacamano wrote: Mon Aug 31, 2020 12:43 pm
Hi sorry I didn't get back to you on this. I started an application with Better and here's what I'm seeing.

$171,013 loan, 799 TransUnion credit score
30 year
3.375% $811 points $756/mo
3.250% $1,543 $744
3.125% $2,796 $733

20 year
3.375% $322 points $981/mo
3.250% $1,050 $970
3.125% $2,023 $959
3.000% $2,731 $948

Current loan for reference
$171,013, 30 years, 3.750%, $822/mo ($973 with PMI and taxes)

The break-even on the points is 4yrs+ which is a little long but costs are rolled in, does it really matter that much? I'm also considering now a 20 year loan. I'm confident I can make the payments but I have to weigh that against investing the difference.

Should I refinance?
I don't like any of these options, though there is a lot of information missing still to do a true analysis. What are the costs in Sections B, C and E? Are you getting any lender credits in Section J? Just looking at what you provided, I'd say that paying that many points for over 3% rate doesn't make sense. Is Better the only application you've started? As others have pointed out on here, Better rarely gives the best estimate up front but will often beat competitor estimates. So the only way to get best pricing is to apply with multiple lenders and have them compete!

Also, do you have the ability to pay down the mortgage so you get out of PMI? That would help you two ways. First, you wouldn't have the PMI expense each month which is about 15% added to your monthly payment. Second, you would get better pricing since your LTV would be lower. Believe decent rates start at LTV under 75%. So instead of paying points, your money would be better spent paying down your current mortgage and lowering your LTV.
BarDownHockey
Posts: 70
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Re: Refinance Mega Thread

Post by BarDownHockey »

presto987 wrote: Mon Aug 31, 2020 6:47 pm Holy cow. To me it looks like there are a lot of redundant or unnecessary fees in LC's LE.

In addition to poking around some websites, you could try requesting a quote from Amrock. I just had to email clientrelations@amrock.com with the address, loan amount, name of lender, and the fact that it's a refinance. It took them 2 days to get back to me. I have heard mixed reviews about their service, but at least you would have another title quote in hand, which should hopefully be competitive.

Also, Amrock estimated the section E cost spot on for me. Lenders always overshoot on that number, because they can't increase it after the fact, but they can decrease it. So any differences between LF and LC on section E can be ignored.
I know it’s a sample size of 1, but I would avoid Amrock like the plague. They tried to sneak in fees during the closing process, sent a horrific notary (left the paperwork on our doorstep pre-signed), said she’d be back in a few days to pick it up, didn’t check our IDs, and caused closing to be delayed 3 days. my mortgage company said they’ve been getting a lot of complaints about Amrock lately. They are considering switching title companies because of how bad they are making the mortgage company look.
m7a8a6
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Re: Refinance Mega Thread

Post by m7a8a6 »

WhyRWeHere wrote: Mon Aug 31, 2020 6:40 pm
m7a8a6 wrote: Mon Aug 31, 2020 5:07 pm
presto987 wrote: Mon Aug 31, 2020 4:58 pm
m7a8a6 wrote: Mon Aug 31, 2020 3:24 pm Does LoanCabin usually quote insanely high title fees?

Currently, I have following locked with LenderFi fro 30yr 250k 63LTV 2.625% loan..
A+B+C+E =$1261 (no points, appraisal waived)
estimated escrow fees are $1270 (for reference below)

LoanCabin finally came back today with following...
A+B+C+E=$3263 ($2000 credit, appraisal waived) = $1263

LC's title fees were insanely high... $2563 (holy smokes!!). My loan officer even said in the email that they are "estimated" and "overinflated" and I am free to shop for mine.

I already locked in with LenderFi but am wondering if I should take the gamble of moving on with LoanCabin instead and see if actual fees will be a lot lower when going through the actual loan process (half prices). I also don't know how easy it is to shop for title services in NJ (was reading in the threads about Radian, but looks like when I goto get a quote there...they ask for Company name). Was kinda hoping didn't have to do all that extra work...haha!
Yeah, unfortunately you might have to shop around for the title company. $2600 is crazy; hopefully you can cut that in half or get close, in which case this would be costless. What rate is LC offering? And which title company are they suggesting with these high costs?

I am pretty sure that Radian doesn't work with LC, but you can email or call them to double-check. On idea is that you can find out who LenderFi is using for title and then try to get a quote from that title company to use with LC.
Same rate. They are using National Title Solutions.

Alright, let me see what I can find in NJ. Should I have this in place before moving forward?
Just in case you weren't aware, in nj (and in many/most? other states) you can get a reissue rate on title insurance. In nj, you need to have received title insurance within 10 years of your refi. Just provide a copy of your title policy to the LO and ask to have the reissue rate applied. I would wait until you get the costs down and as much lender credits that you can, and then bring this up. It's not something that needs to be done early in the process.
This is interesting and I did not know I could do this. I bought my townhouse two years ago so I’m guessing I can just use that? Going to dig out my home closing document.
Edited: actually just thought of this. The LO from LC did say that I qualify for a discounted pricing from the title insurance company since I bought my home in last 4 years. I wonder if she meant the same thing.

LenderFi just sent me the loan disclosure based on the locked rate and gave me 3 days to sign it (otherwise I risk delaying closing?) so kinda feeling a bit pressed for time now.
Last edited by m7a8a6 on Mon Aug 31, 2020 7:57 pm, edited 1 time in total.
JBTX
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Re: Refinance Mega Thread

Post by JBTX »

Thinking about making another run at this, and could use suggestions

Current quicken loan 15 year mortgage is $140k at 3.25. Home value approx $340k. In TX

That is just too small a balance to make numbers work. But what about doing a cash out and going to about $250k. If I could get a 30 year at 2.5% or lower, even with some fees, that could be attractive.

Quicken loans won't do another quote without doing another hard pull.
Lender fi doesn't do cash outs.
Seems like Better is useless unless you have written quote from someone else.

Any suggestions? Where to start?
Rocky77
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Re: Refinance Mega Thread

Post by Rocky77 »

Need suggestions whether to refinance or not

Current house value 350k in TX

13 years remaining on current 15yr mortgage at 3.625%
Balance remaining is 250k
Thinking abt refinancing for 10 yrs at 2.625%
Monthly payment will go up by 300$ but upside is I will be done with mortgage in 10 yrs when older child will start college. Should I refinance or invest the extra 300$ somewhere else?thanks for your suggestions.
need403bhelp
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Re: Refinance Mega Thread

Post by need403bhelp »

Shikoku wrote: Fri Aug 28, 2020 9:55 pm
need403bhelp wrote: Fri Aug 28, 2020 9:50 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?!?

In my area, the bill is “due” Sept 1, but there is no penalty until January 2nd. So a settlement agent or lender may take the tact that the bill isn’t really due until over 60 days, or they may go by the “due” date on the initial bill.
Sorry to hijack. I think this was mentioned previously somewhere in this thread, but I can't find it.

How much cash can I receive at closing before it is considered a "cash-out" refinance?

Is this state specific?

Thank you!
2K. It is not state specific.
So, for future reference, I just learned the above is NOT true.

At least _one_ state (mine) doesn't allow any cash back at closing for rate/term refinance loans.

So break even goes from 12 years to 8.5...
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

need403bhelp wrote: Mon Aug 31, 2020 8:39 pm So, for future reference, I just learned the above is NOT true.

At least _one_ state (mine) doesn't allow any cash back at closing for rate/term refinance loans.

So break even goes from 12 years to 8.5...
Welcome to Texas's 50(a)(6) rule:
Bancorp wrote: http://www2.bancorp.com/marketing/Retai ... sh_Out.pdf

1) New loan amount pays off existing lien and provides even $1 cash to borrower and existing lien is non-50(a) (6), then new lien is a 50 (a) (6) loan. If existing lien is 50 (a) (6) then new lien is a 50 (a) (6).
...
5) New loan amount pays off existing lien and funds, prepaids and or closing costs and if existing lien is a non-50(a) (6), then new lien is non-50(a) (6) transaction.
Note #1 saying "even $1 cash to borrower". So it is best said that up to $2,000 may be provided to the borrower without becoming a cash-out refi, but never more than $2k.
Last edited by BrandonBogle on Tue Sep 01, 2020 11:22 am, edited 1 time in total.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

need403bhelp wrote: Mon Aug 31, 2020 8:39 pm
Shikoku wrote: Fri Aug 28, 2020 9:55 pm
need403bhelp wrote: Fri Aug 28, 2020 9:50 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?!?

In my area, the bill is “due” Sept 1, but there is no penalty until January 2nd. So a settlement agent or lender may take the tact that the bill isn’t really due until over 60 days, or they may go by the “due” date on the initial bill.
Sorry to hijack. I think this was mentioned previously somewhere in this thread, but I can't find it.

How much cash can I receive at closing before it is considered a "cash-out" refinance?

Is this state specific?

Thank you!
2K. It is not state specific.
So, for future reference, I just learned the above is NOT true.

At least _one_ state (mine) doesn't allow any cash back at closing for rate/term refinance loans.

So break even goes from 12 years to 8.5...
Can you post the name of the state as a public service? This is the first time I heard that it is not allowed in a state even though both Fannie Mae and Freddie Mac allow this as shown in their documents I posted on August 28th in this thread. When I got 2k cash out, they designated my loan as "limited cash-out" instead of "rate and term refinance."
"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
jbrown394
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Re: Refinance Mega Thread

Post by jbrown394 »

Hello all,

I very much appreciate it if you could help out a newbie here. This is my first refinance (when I bought the house a year ago, we just went with the lender recommended to us).

Here is my current situation. I applied to four online lenders last week.

- Lender 1: Contacted me the same night, I was told that they have a float down option and could adjust the rates if they go down. I submitted the required documents and signed a bunch of standard forms and got locked @2.5% for 15-years (no fees, but I should pay for the interest as I am skipping a payment).

- Lender 2: We talked the day after I applied, they did not have float down, but offered what I considered a better rate at the time @2.25% for 15-years (no fee, but I still have to pay for interest) and suggested that I lock as soon as possible which I agreed (again submitted the required documents and signed the forms).

- Lender 3: We talked today (about four days after I applied), his offer is very similar to lender 2, but they also waived the appraisal. He was pushing me to lock but I thought if I already have a similar offer from lender 2, it would be better for me to wait for a few more days to see if the rates might come down.

- Lender 4: Has not contacted me yet.

Now my questions:

- What exactly happens next ? The way I have understood it, there will be around three weeks processing time and then once done, a notary comes and I should sign the final documents, is that it ?

- When exactly I should negotiate ?! Everything has happened very quickly so far.

- Have I made a mistake to lock the rate with two lenders ? Eventually I will get the loan from one of them, should I pay any fees/fines to the other ? I suppose they incur some fees, there will be some people working on my application, so after three weeks processing time if I tell them that I don't want to move forward with them, what happens ?

- Most of the messages on this thread, already assume the reader knows some of the basics, are there any pointers that I can read to understand this process better ? Any helpful tips ? What should I have done differently ?

- How long can I wait before I have to lock the rate ? Does anybody see the possibility of the rates coming down further (I understand, nobody can predict the future, but what are the speculations ?).

Thanks a lot in advance for your insights !
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

jbrown394 wrote: Tue Sep 01, 2020 1:16 am Hello all,

I very much appreciate it if you could help out a newbie here. This is my first refinance (when I bought the house a year ago, we just went with the lender recommended to us).

Here is my current situation. I applied to four online lenders last week.

- Lender 1: Contacted me the same night, I was told that they have a float down option and could adjust the rates if they go down. I submitted the required documents and signed a bunch of standard forms and got locked @2.5% for 15-years (no fees, but I should pay for the interest as I am skipping a payment).

- Lender 2: We talked the day after I applied, they did not have float down, but offered what I considered a better rate at the time @2.25% for 15-years (no fee, but I still have to pay for interest) and suggested that I lock as soon as possible which I agreed (again submitted the required documents and signed the forms).

- Lender 3: We talked today (about four days after I applied), his offer is very similar to lender 2, but they also waived the appraisal. He was pushing me to lock but I thought if I already have a similar offer from lender 2, it would be better for me to wait for a few more days to see if the rates might come down.

- Lender 4: Has not contacted me yet.

Now my questions:

- What exactly happens next ? The way I have understood it, there will be around three weeks processing time and then once done, a notary comes and I should sign the final documents, is that it ?

- When exactly I should negotiate ?! Everything has happened very quickly so far.

- Have I made a mistake to lock the rate with two lenders ? Eventually I will get the loan from one of them, should I pay any fees/fines to the other ? I suppose they incur some fees, there will be some people working on my application, so after three weeks processing time if I tell them that I don't want to move forward with them, what happens ?

- Most of the messages on this thread, already assume the reader knows some of the basics, are there any pointers that I can read to understand this process better ? Any helpful tips ? What should I have done differently ?

- How long can I wait before I have to lock the rate ? Does anybody see the possibility of the rates coming down further (I understand, nobody can predict the future, but what are the speculations ?).

Thanks a lot in advance for your insights !

When you say "no Fees", make sure your Closing Costs (A+B+C+E-Lender Credits) = $0 or some credits to you.
If you did not pay any fee to lock, you can walk away. Lender may blacklist you for future application tho. If they asked you to pay for anything along the away and you walked away, your lost.
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