Refinance Mega Thread

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nic3456
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Re: Refinance Mega Thread

Post by nic3456 »

bling wrote: Tue Sep 01, 2020 6:55 pm
drk wrote: Tue Sep 01, 2020 6:39 pm
psychoslowmatic wrote: Mon Aug 17, 2020 9:59 pm I put my money where my mouth is and applied with Third Federal for my small loan balance. I'm in NH, owe 127k on 260k (49% LTV) and currently am in year 6 of a Penfed 5/5 at 3.3125%. I applied for Third Federal's 10 year fixed at 2.79%, fixed $295 closing costs. I could maybe get closer to 2.5% on a 15 year but for no work I'm happy.

Applied Sunday, processor reached out Monday around 1pm via email with a link to their document upload portal and requested documents. Will update with any shenanigans.
Any updates? I see that Third Federal is advertising a Jumbo 5/1 as low as 2.44%, or 2.74% for the low-cost version, but I've never heard of them.
my HELOC is with them. fantastic company.
Agreed- I did a construction loan and a HELOC with them and had zero complaints. They seem to be more competitive than the big banks, but not as low as your Lenderfi's, Loan cabins, etc. I was hoping as an existing customer they would have given me some kind of rate adjustment instead of having to do a refi, but no dice.
drk
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Re: Refinance Mega Thread

Post by drk »

bling wrote: Tue Sep 01, 2020 6:55 pm my HELOC is with them. fantastic company.
Great!
nic3456 wrote: Tue Sep 01, 2020 8:49 pm Agreed- I did a construction loan and a HELOC with them and had zero complaints. They seem to be more competitive than the big banks, but not as low as your Lenderfi's, Loan cabins, etc. I was hoping as an existing customer they would have given me some kind of rate adjustment instead of having to do a refi, but no dice.
None of the online lenders appear to want anything to do with a Jumbo. Better gave me quotes but was so much higher than my current rate that it wasn't even worth continuing.

ETA: Good to hear more praise, of course.
psychoslowmatic
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Re: Refinance Mega Thread

Post by psychoslowmatic »

drk wrote: Tue Sep 01, 2020 6:39 pm
psychoslowmatic wrote: Mon Aug 17, 2020 9:59 pm I put my money where my mouth is and applied with Third Federal for my small loan balance. I'm in NH, owe 127k on 260k (49% LTV) and currently am in year 6 of a Penfed 5/5 at 3.3125%. I applied for Third Federal's 10 year fixed at 2.79%, fixed $295 closing costs. I could maybe get closer to 2.5% on a 15 year but for no work I'm happy.

Applied Sunday, processor reached out Monday around 1pm via email with a link to their document upload portal and requested documents. Will update with any shenanigans.
Any updates? I see that Third Federal is advertising a Jumbo 5/1 as low as 2.44%, or 2.74% for the low-cost version, but I've never heard of them.
There was no money up front, and when I asked about whether my rate was locked they said yes, so I assume it's locked at applying. There's a pretty steep fee if you want to change rate/terms after applying so know what you want going in.

I applied on the 16th, they contacted me the 17th and had a bunch of docs for me to sign on the 20th. They did a drive by appraisal that came back on the 25th. Nothing since, I assume I'm in queue for underwriting. They said their loans have been running 45-60 days to close.
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

drk wrote: Tue Sep 01, 2020 8:52 pm
bling wrote: Tue Sep 01, 2020 6:55 pm my HELOC is with them. fantastic company.
Great!
nic3456 wrote: Tue Sep 01, 2020 8:49 pm Agreed- I did a construction loan and a HELOC with them and had zero complaints. They seem to be more competitive than the big banks, but not as low as your Lenderfi's, Loan cabins, etc. I was hoping as an existing customer they would have given me some kind of rate adjustment instead of having to do a refi, but no dice.
None of the online lenders appear to want anything to do with a Jumbo. Better gave me quotes but was so much higher than my current rate that it wasn't even worth continuing.

ETA: Good to hear more praise, of course.
For those with $1 million in an investment firm and if they offer mortgages, I have heard 30-yr jumbo at 2.75% no pt. Not ideal, just a thought.
drk
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Re: Refinance Mega Thread

Post by drk »

bgh11 wrote: Tue Sep 01, 2020 10:29 pm For those with $1 million in an investment firm and if they offer mortgages, I have heard 30-yr jumbo at 2.75% no pt. Not ideal, just a thought.
Yeah, my contacts at big banks told me to wait until mid-September for new Jumbo pricing. The rates start so unattractive that even relationship pricing doesn't do much.
mrmicro
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Re: Refinance Mega Thread

Post by mrmicro »

All things being equal, which of the two would you guys choose - Better or LoanDepot. I have exactly matching terms and LE's from both. Is one better than the other in terms of closing times, keeping surprises to a minimum, overall risk etc. Any feedback is welcome. Thanks!!
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

mrmicro wrote: Tue Sep 01, 2020 11:55 pm All things being equal, which of the two would you guys choose - Better or LoanDepot. I have exactly matching terms and LE's from both. Is one better than the other in terms of closing times, keeping surprises to a minimum, overall risk etc. Any feedback is welcome. Thanks!!
IMO, all things being equal, I’d pick Better. They tend to close faster and don’t get offended if you continue shopping them against others during the refinance. This is because they don’t get paid on commission, so they don’t take things as personally - you aren’t impacting their paycheck (as much).

Now, if you have anything “complicated”, even as much as self-employment income or something, then I don’t know.
sudohouse
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Re: Refinance Mega Thread

Post by sudohouse »

drk wrote: Tue Sep 01, 2020 11:10 pm
bgh11 wrote: Tue Sep 01, 2020 10:29 pm For those with $1 million in an investment firm and if they offer mortgages, I have heard 30-yr jumbo at 2.75% no pt. Not ideal, just a thought.
Yeah, my contacts at big banks told me to wait until mid-September for new Jumbo pricing. The rates start so unattractive that even relationship pricing doesn't do much.
Can you give me more details about this. I'm right now shopping around for my investment property refinance loan amount of 637k and because it's above the 510k conforming limit I'm getting awful rates everywhere. Like 3.65% at 8k closing. Around what date did your contacts say new jumbo pricing hits? and why is it so bad for jumbos atm?
ossipago
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Re: Refinance Mega Thread

Post by ossipago »

My wife and I are wrestling with a dilemma regarding amortization period. We are about 2 years into a $624K mortgage (HCOL conforming @ 3.85%). We are looking into a no-cost refinance, and debating whether to reset the existing balance (about 600K after some extra payments) at 30 years or 25 years.

My gut says to shorten the amortization period. Her concern is that the we would be paying almost $300 a month more under the 25-year scenario, and she wonders if giving up the payment flexibility is worth it. We'd accrue $1000 more in principal under the 25 year scenario over 1 year, and it increases slowly from there. In the case where the interest rates are identical for the two loans, is there any advantage to going with a 25-year mortgage? We max out tax-advantage space and can afford either payment, so that's not an issue. I guess I'm struggling to understand what advantages the 25-year presents in this case.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

ossipago wrote: Wed Sep 02, 2020 12:23 am My wife and I are wrestling with a dilemma regarding amortization period. We are about 2 years into a $624K mortgage (HCOL conforming @ 3.85%). We are looking into a no-cost refinance, and debating whether to reset the existing balance (about 600K after some extra payments) at 30 years or 25 years.

My gut says to shorten the amortization period. Her concern is that the we would be paying almost $300 a month more under the 25-year scenario, and she wonders if giving up the payment flexibility is worth it. We'd accrue $1000 more in principal under the 25 year scenario over 1 year, and it increases slowly from there. In the case where the interest rates are identical for the two loans, is there any advantage to going with a 25-year mortgage? We max out tax-advantage space and can afford either payment, so that's not an issue. I guess I'm struggling to understand what advantages the 25-year presents in this case.
While the interest rate is likely to be the same, the question remains whether the Section A points or Section J credits would be the same between the two of them. If they are, get the 30 year as you can always pay it as a 25-year. If the pricing is different, it really depends on how different it is.

I will say that while shopping around, you will have better lock finding the most competitive rate shopping for the 30-year. Just a supply and demand thing with the 30-year demand driving down the supply cost. You may find the cheapest lenders won’t even offer a 25-year option.
Goal33
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Re: Refinance Mega Thread

Post by Goal33 »

BrandonBogle wrote: Wed Sep 02, 2020 12:36 am
ossipago wrote: Wed Sep 02, 2020 12:23 am My wife and I are wrestling with a dilemma regarding amortization period. We are about 2 years into a $624K mortgage (HCOL conforming @ 3.85%). We are looking into a no-cost refinance, and debating whether to reset the existing balance (about 600K after some extra payments) at 30 years or 25 years.

My gut says to shorten the amortization period. Her concern is that the we would be paying almost $300 a month more under the 25-year scenario, and she wonders if giving up the payment flexibility is worth it. We'd accrue $1000 more in principal under the 25 year scenario over 1 year, and it increases slowly from there. In the case where the interest rates are identical for the two loans, is there any advantage to going with a 25-year mortgage? We max out tax-advantage space and can afford either payment, so that's not an issue. I guess I'm struggling to understand what advantages the 25-year presents in this case.
While the interest rate is likely to be the same, the question remains whether the Section A points or Section J credits would be the same between the two of them. If they are, get the 30 year as you can always pay it as a 25-year. If the pricing is different, it really depends on how different it is.

I will say that while shopping around, you will have better lock finding the most competitive rate shopping for the 30-year. Just a supply and demand thing with the 30-year demand driving down the supply cost. You may find the cheapest lenders won’t even offer a 25-year option.
+1. Keep it simple. Shop for the 30 year. Decide later if you want to pay extra.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Goal33 wrote: Wed Sep 02, 2020 12:46 am
BrandonBogle wrote: Wed Sep 02, 2020 12:36 am
ossipago wrote: Wed Sep 02, 2020 12:23 am My wife and I are wrestling with a dilemma regarding amortization period. We are about 2 years into a $624K mortgage (HCOL conforming @ 3.85%). We are looking into a no-cost refinance, and debating whether to reset the existing balance (about 600K after some extra payments) at 30 years or 25 years.

My gut says to shorten the amortization period. Her concern is that the we would be paying almost $300 a month more under the 25-year scenario, and she wonders if giving up the payment flexibility is worth it. We'd accrue $1000 more in principal under the 25 year scenario over 1 year, and it increases slowly from there. In the case where the interest rates are identical for the two loans, is there any advantage to going with a 25-year mortgage? We max out tax-advantage space and can afford either payment, so that's not an issue. I guess I'm struggling to understand what advantages the 25-year presents in this case.
While the interest rate is likely to be the same, the question remains whether the Section A points or Section J credits would be the same between the two of them. If they are, get the 30 year as you can always pay it as a 25-year. If the pricing is different, it really depends on how different it is.

I will say that while shopping around, you will have better lock finding the most competitive rate shopping for the 30-year. Just a supply and demand thing with the 30-year demand driving down the supply cost. You may find the cheapest lenders won’t even offer a 25-year option.
+1. Keep it simple. Shop for the 30 year. Decide later if you want to pay extra.
To help visual this, take a look at the 30-year, 20-year, and 15-year (in that order) rate tables I have available on my current refi. Even at the same rate, pricing is different between the three. The lender I'm using doesn't offer a 25-year for me to share that rate table.

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mrmicro
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Re: Refinance Mega Thread

Post by mrmicro »

BrandonBogle wrote: Tue Sep 01, 2020 11:59 pm
mrmicro wrote: Tue Sep 01, 2020 11:55 pm All things being equal, which of the two would you guys choose - Better or LoanDepot. I have exactly matching terms and LE's from both. Is one better than the other in terms of closing times, keeping surprises to a minimum, overall risk etc. Any feedback is welcome. Thanks!!
IMO, all things being equal, I’d pick Better. They tend to close faster and don’t get offended if you continue shopping them against others during the refinance. This is because they don’t get paid on commission, so they don’t take things as personally - you aren’t impacting their paycheck (as much).

Now, if you have anything “complicated”, even as much as self-employment income or something, then I don’t know.
Thanks Brandon. Nothing complicated, so Better it is!!
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

What does it take to be a mortgage originator or broker or whoever can generate a LE? Can someone volunteer here and give us LE that we can ask others to match or beat? :idea:
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

BrandonBogle which term are you refinancing? Aren't the lender's credits low? I thought you have already refi-ed a few times.

To help visual this, take a look at the 30-year, 20-year, and 15-year (in that order) rate tables I have available on my current refi. Even at the same rate, pricing is different between the three. The lender I'm using doesn't offer a 25-year for me to share that rate table.

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

bgh11 wrote: Wed Sep 02, 2020 3:36 am BrandonBogle which term are you refinancing? Aren't the lender's credits low? I thought you have already refi-ed a few times.
I am refinancing to the 15-year term. Keep in mind that outside of this/not reflected on this, I will pay about $1,200 in B + C + E and receive an additional $2,500 via the Amex credit. Also keep in mind my loan is only $150k, so I won’t get the high credits others can get.

This is why I refi’d multiple times. My last refi had $5k in credits before the $1,200 in A + B + C + E and Amex credits, so over $6k to me (via escrow funding + cash) in the end. That lets me finish up with this refi having “made my money” already.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

mrmicro wrote: Tue Sep 01, 2020 11:55 pm All things being equal, which of the two would you guys choose - Better or LoanDepot. I have exactly matching terms and LE's from both. Is one better than the other in terms of closing times, keeping surprises to a minimum, overall risk etc. Any feedback is welcome. Thanks!!
One data point: LD was excellent in matching and providing timely LE. Went with Better. Better Settlement Service has zero customer service. Not happy at all.
"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
fluxcap111955
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Re: Refinance Mega Thread

Post by fluxcap111955 »

I was able to lock with LoanDepot on a no cash refi - 15 yr 2.5% on a 310k balance. I am coming from 2.875% with LoanDepot that I refied back in Dec. Below are my details. They only offered this after I sent them an LE from LenderFi which was similar to below but had a net of about $200 cost to close.

A: 1595
B: 112
C: 2813
E: 132
Credits: -4731
Net: -79

Questions:

- SHould I shop this to other lenders? I currently have an application open with Better -- hasn't been competitive -- Loan Cabin, Watermark and North Pointe. I haven'e received quotes from the latter three.

- Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
jco
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Re: Refinance Mega Thread

Post by jco »

fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am - Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
Does anyone here know if Radian Title works with better.com?
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

jco wrote: Wed Sep 02, 2020 8:58 am
fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am - Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
Does anyone here know if Radian Title works with better.com?
Yes.
"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 »

fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am I was able to lock with LoanDepot on a no cash refi - 15 yr 2.5% on a 310k balance. I am coming from 2.875% with LoanDepot that I refied back in Dec. Below are my details. They only offered this after I sent them an LE from LenderFi which was similar to below but had a net of about $200 cost to close.

A: 1595
B: 112
C: 2813
E: 132
Credits: -4731
Net: -79

Questions:

- SHould I shop this to other lenders? I currently have an application open with Better -- hasn't been competitive -- Loan Cabin, Watermark and North Pointe. I haven'e received quotes from the latter three.

- Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
I am curious to know why your Section C is so high. What are there and how much are individual items?
"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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NORDO
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Re: Refinance Mega Thread

Post by NORDO »

jco wrote: Tue Sep 01, 2020 5:52 pmWho will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.
We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.
m7a8a6
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Re: Refinance Mega Thread

Post by m7a8a6 »

Since we are talking about title services...how does it actually work?

Once my loan is locked, do I just pass the quote from a 3rd party title service to the lender and ask them to match it? Or do I ask them to remove the title costs altogether?

I basically got a few quotes but not sure how to proceed with them. Thanks.
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NORDO
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Re: Refinance Mega Thread

Post by NORDO »

BrandonBogle wrote: Wed Sep 02, 2020 12:36 am
ossipago wrote: Wed Sep 02, 2020 12:23 am My wife and I are wrestling with a dilemma regarding amortization period. We are about 2 years into a $624K mortgage (HCOL conforming @ 3.85%). We are looking into a no-cost refinance, and debating whether to reset the existing balance (about 600K after some extra payments) at 30 years or 25 years.

My gut says to shorten the amortization period. Her concern is that the we would be paying almost $300 a month more under the 25-year scenario, and she wonders if giving up the payment flexibility is worth it. We'd accrue $1000 more in principal under the 25 year scenario over 1 year, and it increases slowly from there. In the case where the interest rates are identical for the two loans, is there any advantage to going with a 25-year mortgage? We max out tax-advantage space and can afford either payment, so that's not an issue. I guess I'm struggling to understand what advantages the 25-year presents in this case.
While the interest rate is likely to be the same, the question remains whether the Section A points or Section J credits would be the same between the two of them. If they are, get the 30 year as you can always pay it as a 25-year. If the pricing is different, it really depends on how different it is.

I will say that while shopping around, you will have better lock finding the most competitive rate shopping for the 30-year. Just a supply and demand thing with the 30-year demand driving down the supply cost. You may find the cheapest lenders won’t even offer a 25-year option.
With rates this low, I'm also firmly in the "always go 30" camp - assuming you're still at 20+ on the existing loan.

You can always pay extra and reduce the term. But the security offered by the lower required monthly payment far outweighs the slight difference in lifetime interest, in my opinion, especially when many jobs and incomes are less secure.

Totally different discussion when rates are higher, but at sub-3% the actual additional cost is negligible.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

NORDO wrote: Wed Sep 02, 2020 9:27 am
jco wrote: Tue Sep 01, 2020 5:52 pmWho will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.
We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.
On paper it was Better Settlement Services but the work was done by Westcor. On paper saying that it is Better Settlement Services but outsourcing the work to Westcor is a lie in my opinion. For heaven's sake please do not use them.
"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
Mongoose42
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Re: Refinance Mega Thread

Post by Mongoose42 »

LenderFi is showing 2% rates for a 30-yr mortgage on their website. Is this legit? I assume it comes with points, but maybe 2.25% would have no points, which would be worth considering another refi from my 2.75% loan that just closed.
fluxcap111955
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Re: Refinance Mega Thread

Post by fluxcap111955 »

Shikoku wrote: Wed Sep 02, 2020 9:17 am
fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am I was able to lock with LoanDepot on a no cash refi - 15 yr 2.5% on a 310k balance. I am coming from 2.875% with LoanDepot that I refied back in Dec. Below are my details. They only offered this after I sent them an LE from LenderFi which was similar to below but had a net of about $200 cost to close.

A: 1595
B: 112
C: 2813
E: 132
Credits: -4731
Net: -79

Questions:

- SHould I shop this to other lenders? I currently have an application open with Better -- hasn't been competitive -- Loan Cabin, Watermark and North Pointe. I haven'e received quotes from the latter three.

- Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
I am curious to know why your Section C is so high. What are there and how much are individual items?
Here is the breakdown.

TITLE–CPL FEE $125
TITLE–LENDER TITLE INSURANCE $1,988
TITLE–PA POLICY FEE $200
TITLE–SETTLEMENT/CLOSING FEE $500

I have since heard back from Better - they beat the offer with a lower rate 2.375%. Breakdown is as follows:

A: 0
B: 614
C: 2606
E: 208
Credits: 2855
Net cost: 879

They also mentioned that the appraisal will likely be waved, saving me 550. I am also waiting on title cost from Radian since they will work with Better. Looks like I'm going to go with this, but I sent back to LoanDepot to give them another shot to beat.
GoodOmens
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Re: Refinance Mega Thread

Post by GoodOmens »

I'm striking out trying to get anyone to respond.

Loancabin: Applied 8/13
WaterMark: Applied 9/1
Intercontinental Capital Group: Applied 8/31
LenderFi: Emailed my previous LO on 8/31 and 8/13 from a refinance I did back in Feb with them. Did not apply through the site.

Looking to refinance 283k with LTV around 73% with my as the sole borrower (no cosign). I've used Better and LenderFi in the past so I know I can do it.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Shikoku wrote: Wed Sep 02, 2020 9:37 am
NORDO wrote: Wed Sep 02, 2020 9:27 am
jco wrote: Tue Sep 01, 2020 5:52 pmWho will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.
We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.
On paper it was Better Settlement Services but the work was done by Westcor. On paper saying that it is Better Settlement Services but outsourcing the work to Westcor is a lie in my opinion. For heaven's sake please do not use them.
Just as a datapoint, I’m currently on my second refi through Better with Better Settlement Services/Westcor. The first time around I had zero issues and this time around I haven’t yet, but I’m only as far as my title report coming back to Better so far. I’ll probably be another week or so before I get cleared-to-close and my disclosures drawn up.
DrGrnTum
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Re: Refinance Mega Thread

Post by DrGrnTum »

Closed with Better on 07/15.
Today the $2,500 bonus posted to our Amex Credit Card.

I remember back when I started this process there was concern that this was a targeted offer.
I applied for the loan using the Better Amex link that I found on line.

I got a 15yr, 2.375 no cost loan.
The whole process was pretty straight forward. No complaints with Better.

Thank you all who contribute input to this thread.
Shikoku
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Re: Refinance Mega Thread

Post by Shikoku »

fluxcap111955 wrote: Wed Sep 02, 2020 9:52 am
Shikoku wrote: Wed Sep 02, 2020 9:17 am
fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am I was able to lock with LoanDepot on a no cash refi - 15 yr 2.5% on a 310k balance. I am coming from 2.875% with LoanDepot that I refied back in Dec. Below are my details. They only offered this after I sent them an LE from LenderFi which was similar to below but had a net of about $200 cost to close.

A: 1595
B: 112
C: 2813
E: 132
Credits: -4731
Net: -79

Questions:

- SHould I shop this to other lenders? I currently have an application open with Better -- hasn't been competitive -- Loan Cabin, Watermark and North Pointe. I haven'e received quotes from the latter three.

- Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
I am curious to know why your Section C is so high. What are there and how much are individual items?
Here is the breakdown.

TITLE–CPL FEE $125
TITLE–LENDER TITLE INSURANCE $1,988
TITLE–PA POLICY FEE $200
TITLE–SETTLEMENT/CLOSING FEE $500

I have since heard back from Better - they beat the offer with a lower rate 2.375%. Breakdown is as follows:

A: 0
B: 614
C: 2606
E: 208
Credits: 2855
Net cost: 879

They also mentioned that the appraisal will likely be waved, saving me 550. I am also waiting on title cost from Radian since they will work with Better. Looks like I'm going to go with this, but I sent back to LoanDepot to give them another shot to beat.
I do not know if your state has a very high title insurance fee but my state it will cost $500 to $600 instead of $2,000 for your size of loan. So please get a quote from another title company before paying that high.
"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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NORDO
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Re: Refinance Mega Thread

Post by NORDO »

Shikoku wrote: Wed Sep 02, 2020 9:37 am
NORDO wrote: Wed Sep 02, 2020 9:27 am
jco wrote: Tue Sep 01, 2020 5:52 pmWho will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.
We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.
On paper it was Better Settlement Services but the work was done by Westcor. On paper saying that it is Better Settlement Services but outsourcing the work to Westcor is a lie in my opinion. For heaven's sake please do not use them.
Yep - must depend on where you reside. Ours was listed as Spruce from the original LE onward:

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Shikoku
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Location: USA

Re: Refinance Mega Thread

Post by Shikoku »

Mongoose42 wrote: Wed Sep 02, 2020 9:38 am LenderFi is showing 2% rates for a 30-yr mortgage on their website. Is this legit? I assume it comes with points, but maybe 2.25% would have no points, which would be worth considering another refi from my 2.75% loan that just closed.
It is legit. For 400k loan it might cost 8k in points based on the posted APR. You can use some online APR calculator to figure this out.
"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
fluxcap111955
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Joined: Tue Jul 09, 2013 5:56 pm

Re: Refinance Mega Thread

Post by fluxcap111955 »

Shikoku wrote: Wed Sep 02, 2020 10:07 am
fluxcap111955 wrote: Wed Sep 02, 2020 9:52 am
Shikoku wrote: Wed Sep 02, 2020 9:17 am
fluxcap111955 wrote: Wed Sep 02, 2020 8:51 am I was able to lock with LoanDepot on a no cash refi - 15 yr 2.5% on a 310k balance. I am coming from 2.875% with LoanDepot that I refied back in Dec. Below are my details. They only offered this after I sent them an LE from LenderFi which was similar to below but had a net of about $200 cost to close.

A: 1595
B: 112
C: 2813
E: 132
Credits: -4731
Net: -79

Questions:

- SHould I shop this to other lenders? I currently have an application open with Better -- hasn't been competitive -- Loan Cabin, Watermark and North Pointe. I haven'e received quotes from the latter three.

- Any alternatives to Radian Title? I know I can do better than LoanDepot's default title and I used Radian in December. However, Radian mentioned they are not doing loans with LoanDepot due to covid -- very strange.
I am curious to know why your Section C is so high. What are there and how much are individual items?
Here is the breakdown.

TITLE–CPL FEE $125
TITLE–LENDER TITLE INSURANCE $1,988
TITLE–PA POLICY FEE $200
TITLE–SETTLEMENT/CLOSING FEE $500

I have since heard back from Better - they beat the offer with a lower rate 2.375%. Breakdown is as follows:

A: 0
B: 614
C: 2606
E: 208
Credits: 2855
Net cost: 879

They also mentioned that the appraisal will likely be waved, saving me 550. I am also waiting on title cost from Radian since they will work with Better. Looks like I'm going to go with this, but I sent back to LoanDepot to give them another shot to beat.
I do not know if your state has a very high title insurance fee but my state it will cost $500 to $600 instead of $2,000 for your size of loan. So please get a quote from another title company before paying that high.
Thanks. I’m in PA. I heard back from Radian right away and they are around $1800 which is comparable to my previous refi. That’s 800-1000 less than what Better and LD have in their LE.
wootwoot
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Re: Refinance Mega Thread

Post by wootwoot »

Amex credit showed up today, closed late July.
postal007
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Re: Refinance Mega Thread

Post by postal007 »

presto987 wrote: Mon Aug 31, 2020 6:52 pm
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.
Thanks for the tip on Interactive Mortgage. I went back and applied with them and they locked me at 2.5% no cost, no fuss. Pretty straightforward, worked with Eric Park. I then used that to send to LD and Owning... LD came back with a 2.5% match with a $500 additional credit, and Owning said they'd just send me a check for $1000 plus the 2.5%.

Now to decide which one to close with....
presto987
Posts: 228
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Re: Refinance Mega Thread

Post by presto987 »

postal007 wrote: Wed Sep 02, 2020 11:06 am
presto987 wrote: Mon Aug 31, 2020 6:52 pm
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.
Thanks for the tip on Interactive Mortgage. I went back and applied with them and they locked me at 2.5% no cost, no fuss. Pretty straightforward, worked with Eric Park. I then used that to send to LD and Owning... LD came back with a 2.5% match with a $500 additional credit, and Owning said they'd just send me a check for $1000 plus the 2.5%.

Now to decide which one to close with....
Awesome! Looks like your worst case scenario will be to net $1000 on a 2.5% 30-year, which is great, and particularly impressive considering your loan size is above the $510k conforming limit!

I've heard good things about Owning from a few people, and apparently they close really fast (2-3 weeks), so you could take that offer and run. My only concern is that it sounds like the $1000 is not a lender credit, so there would be no documentation of it anywhere. Just make sure to get confirmation of the $1000 in writing and confirm that there are no other conditions/"gotchas" that would prevent you from getting it.

Another option is to go back to Interactive Mortgage and see if they'd be willing to beat Owning. I doubt they would do it if Owning's additional $1000 credit is not stated in an LE, and because you're already locked. But maybe if you have it in writing in an email you could try forwarding the email to prove that you're not making it up. And some lenders (like Better) are willing to price match even after locking. So doesn't hurt to try.

I'm surprised more people aren't talking about Interactive Mortgage considering the rates published on their website.
e5116
Posts: 620
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Re: Refinance Mega Thread

Post by e5116 »

presto987 wrote: Wed Sep 02, 2020 11:31 am
postal007 wrote: Wed Sep 02, 2020 11:06 am
presto987 wrote: Mon Aug 31, 2020 6:52 pm
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.
Thanks for the tip on Interactive Mortgage. I went back and applied with them and they locked me at 2.5% no cost, no fuss. Pretty straightforward, worked with Eric Park. I then used that to send to LD and Owning... LD came back with a 2.5% match with a $500 additional credit, and Owning said they'd just send me a check for $1000 plus the 2.5%.

Now to decide which one to close with....
Awesome! Looks like your worst case scenario will be to net $1000 on a 2.5% 30-year, which is great, and particularly impressive considering your loan size is above the $510k conforming limit!

I've heard good things about Owning from a few people, and apparently they close really fast (2-3 weeks), so you could take that offer and run. My only concern is that it sounds like the $1000 is not a lender credit, so there would be no documentation of it anywhere. Just make sure to get confirmation of the $1000 in writing and confirm that there are no other conditions/"gotchas" that would prevent you from getting it.

Another option is to go back to Interactive Mortgage and see if they'd be willing to beat Owning. I doubt they would do it if Owning's additional $1000 credit is not stated in an LE, and because you're already locked. But maybe if you have it in writing in an email you could try forwarding the email to prove that you're not making it up. And some lenders (like Better) are willing to price match even after locking. So doesn't hurt to try.

I'm surprised more people aren't talking about Interactive Mortgage considering the rates published on their website.
Well, they are California only, so....I guess Owning is too.
presto987
Posts: 228
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Re: Refinance Mega Thread

Post by presto987 »

Shikoku wrote: Wed Sep 02, 2020 9:37 am
NORDO wrote: Wed Sep 02, 2020 9:27 am
jco wrote: Tue Sep 01, 2020 5:52 pmWho will Better.com work with in terms of title services? I haven't heard great things about their default title service. I have 5 business days to pick someone else.
We used their service, which was Spruce Land Services here, and the local notary that came to the house to sign the paperwork was great.

I did get a quote from Radian that was ~$150 cheaper and Better increased the lender credit to match the title pricing.

Anyway, just a positive data point - I know some have had issues, but we had none whatsoever when it came to title/closing.
On paper it was Better Settlement Services but the work was done by Westcor. On paper saying that it is Better Settlement Services but outsourcing the work to Westcor is a lie in my opinion. For heaven's sake please do not use them.
Is it possible that BSS did provide the settlement service but outsourced the title insurance piece to Westcor? BSS is not an insurance company, so they would have to outsource title insurance to someone else. I think most/all title insurance companies provide settlement services, but there are settlement companies that do not do title insurance.
reddyrc
Posts: 2
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Re: Refinance Mega Thread

Post by reddyrc »

need403bhelp wrote: Sat Aug 29, 2020 1:33 pm
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.
Hey am also looking to refi, think you can share what lenders you are using? Those are great rates!! Congrats!
Jags4186
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Re: Refinance Mega Thread

Post by Jags4186 »

DrGrnTum wrote: Wed Sep 02, 2020 10:03 am Closed with Better on 07/15.
Today the $2,500 bonus posted to our Amex Credit Card.
Good to know. I closed on 7/16 so I will keep fingers crossed it shows up this week.
postal007
Posts: 13
Joined: Thu Feb 27, 2020 2:29 am

Re: Refinance Mega Thread

Post by postal007 »

presto987 wrote: Wed Sep 02, 2020 11:31 am
postal007 wrote: Wed Sep 02, 2020 11:06 am
presto987 wrote: Mon Aug 31, 2020 6:52 pm
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.
Thanks for the tip on Interactive Mortgage. I went back and applied with them and they locked me at 2.5% no cost, no fuss. Pretty straightforward, worked with Eric Park. I then used that to send to LD and Owning... LD came back with a 2.5% match with a $500 additional credit, and Owning said they'd just send me a check for $1000 plus the 2.5%.

Now to decide which one to close with....
Awesome! Looks like your worst case scenario will be to net $1000 on a 2.5% 30-year, which is great, and particularly impressive considering your loan size is above the $510k conforming limit!

I've heard good things about Owning from a few people, and apparently they close really fast (2-3 weeks), so you could take that offer and run. My only concern is that it sounds like the $1000 is not a lender credit, so there would be no documentation of it anywhere. Just make sure to get confirmation of the $1000 in writing and confirm that there are no other conditions/"gotchas" that would prevent you from getting it.

Another option is to go back to Interactive Mortgage and see if they'd be willing to beat Owning. I doubt they would do it if Owning's additional $1000 credit is not stated in an LE, and because you're already locked. But maybe if you have it in writing in an email you could try forwarding the email to prove that you're not making it up. And some lenders (like Better) are willing to price match even after locking. So doesn't hurt to try.

I'm surprised more people aren't talking about Interactive Mortgage considering the rates published on their website.
Thanks again for the tip! Yeah, I'm refi-ing at $565k and paying down a bit (my last refi I had $3-4k caught in escrow due to a non-updated payoff that Wells didn't refund for 4 weeks) so that's probably why Owning can't offer a full lender credit there. So I'll make sure to get it in writing. Thanks again for the tip, and agree it probably works only in certain states unfortunately, but hopefully others in CA can benefit.
FiscallyResponsible
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Re: Refinance Mega Thread

Post by FiscallyResponsible »

Familyman2012 wrote: Tue Sep 01, 2020 4:15 pm
Johny wrote: Tue Sep 01, 2020 4:02 pm
FiscallyResponsible wrote: Tue Sep 01, 2020 3:35 pm
bgh11 wrote: Tue Sep 01, 2020 5:05 am
JBTX wrote: Mon Aug 31, 2020 7:51 pm 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?
what about a local lender or credit union?
I am using loan cabin. 410k mortgage plus 100k cash out for 30year fixed... 2.5% with 600 or so lender credit.. Total oan cost upper estimate at 1900 or so.
i was really hoping to hear from Loan Cabin as I am doing the same cash out refi scenario but so far I haven't heard back.
This sounds like a newbie question. This is more of a general question.

Why do people take out 100k cash and then refi back to 30 years? Is it just to invest? Or remodel?

I feel like I did pretty well with my 2 non cash refi. But interested in another strategy if it makes sense for me to do it. Open minded.
We will be throwing the money into the market. We itemize so effectively, we are borrowing at <2% and I don't foresee "needing" the money before retirement. Given our long time horizon, the odds of us coming out ahead are quite good and if we don't.... it's not the end of the world.
drk
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Location: AWOL

Re: Refinance Mega Thread

Post by drk »

sudohouse wrote: Wed Sep 02, 2020 12:16 am Can you give me more details about this. I'm right now shopping around for my investment property refinance loan amount of 637k and because it's above the 510k conforming limit I'm getting awful rates everywhere. Like 3.65% at 8k closing. Around what date did your contacts say new jumbo pricing hits? and why is it so bad for jumbos atm?
I don't really have more details than that: all mortgages include some mark-up at origination, and that changes month-to-month or quarter-to-quarter. It's bad for Jumbos right now because of the increased risk in the product (can't sell it to the GSEs) and the volume of purchase and refi applications in general. They're making money with minimal risk on Conforming loans, so it makes sense to charge enough for Jumbos to make it worthwhile. I'd expect it to get better when mortgage traffic cools and banks feel more confident that we're not about to see a correction in house prices, at which point we might get back to the pre-COVID situation you see in the "Relationship mortgage discounts" thread.
bgh11
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Re: Refinance Mega Thread

Post by bgh11 »

sudohouse wrote: Wed Sep 02, 2020 12:16 am
drk wrote: Tue Sep 01, 2020 11:10 pm
bgh11 wrote: Tue Sep 01, 2020 10:29 pm For those with $1 million in an investment firm and if they offer mortgages, I have heard 30-yr jumbo at 2.75% no pt. Not ideal, just a thought.
Yeah, my contacts at big banks told me to wait until mid-September for new Jumbo pricing. The rates start so unattractive that even relationship pricing doesn't do much.
Can you give me more details about this. I'm right now shopping around for my investment property refinance loan amount of 637k and because it's above the 510k conforming limit I'm getting awful rates everywhere. Like 3.65% at 8k closing. Around what date did your contacts say new jumbo pricing hits? and why is it so bad for jumbos atm?
Investment properties usually don't get the rock bottom rates discussed here. Jumbos are ineligible for purchase by Freddie Mac and Fannie Mae and usually be sold to the secondary market.
bgh11
Posts: 90
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Re: Refinance Mega Thread

Post by bgh11 »

BrandonBogle wrote: Wed Sep 02, 2020 8:12 am
bgh11 wrote: Wed Sep 02, 2020 3:36 am BrandonBogle which term are you refinancing? Aren't the lender's credits low? I thought you have already refi-ed a few times.
I am refinancing to the 15-year term. Keep in mind that outside of this/not reflected on this, I will pay about $1,200 in B + C + E and receive an additional $2,500 via the Amex credit. Also keep in mind my loan is only $150k, so I won’t get the high credits others can get.

This is why I refi’d multiple times. My last refi had $5k in credits before the $1,200 in A + B + C + E and Amex credits, so over $6k to me (via escrow funding + cash) in the end. That lets me finish up with this refi having “made my money” already.
Not bad for low balance + Amex credit :beer :moneybag
ossipago
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Re: Refinance Mega Thread

Post by ossipago »

e5116 wrote: Wed Sep 02, 2020 11:34 am
Well, they are California only, so....I guess Owning is too.
Yes, Owning looks to be CA only.
reddyrc
Posts: 2
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Re: Refinance Mega Thread

Post by reddyrc »

Hey buds, am trying to do a rate and term refi in the state of MD. Any recommendations on what lenders? Am trying to get at least a 2.5% with no closing costs. Am waiting to hear back from https://intercontinentalcapital.com/.

LenderFi: Rates were too high for my zipcode.

Thx!
Stinger72
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Re: Refinance Mega Thread

Post by Stinger72 »

I have a question regarding consolidating my 2 loans into a Home Equity Loan.

Background:

Home Value (In NY State): $260,000
Mortgage #1: $106,000 @ 4.875%
Home Equity Loan: $127,000 @4.49
Credit score: Over 740

While we did consider a 15 year mortgage, we want a 30 year to give us flexibility on payment with concerns over potential upcoming layoffs or such.The local bank I spoke with today that holds the current Equity loan had asked if I had considered rolling everything into a Home Equity loan instead of a cash-out traditional mortgage (since we have an equity loan, all mortgages will be considered a "cash-out" regardless if we take money out or not). She went on to tell me that there wouldn't be closing costs on it, and the interest rate would be 3.5%.

All the rates that I am getting back so far have been over 3% with at least 8-12k of closing costs including points to bring it to 3%, or 2.875%. In doing a swag at the math, it appears that the Home Equity is a bit more attractive considering it doesn't have the upfront costs. Either way we are saving considerably over our original rate, and payback on the .5 difference in points and closing costs seems to be over 10 years, unless I'm calculating incorrectly.

Here's my main question that I can't answer: Is there any other drawback to having a Home Equity Loan product instead of a Mortgage for the full balance? I think I read in 2018 a law was put into effect saying the mortgage interest isn't deductible on a Home Equity product unless used for your house (which ours was). Even with that issue, being in NY, and the new tax laws, we can only deduct $10,000 between mortgage interest and property taxes, and we've been using the standard deduction ever since that was put into effect.
User avatar
BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Stinger72 wrote: Wed Sep 02, 2020 12:26 pm I have a question regarding consolidating my 2 loans into a Home Equity Loan.
...
While we did consider a 15 year mortgage, we want a 30 year to give us flexibility on payment with concerns over potential upcoming layoffs or such... She went on to tell me that there wouldn't be closing costs on it, and the interest rate would be 3.5%.
There is no inherent problem with having a HEL instead of a mortgage, assuming you have good terms. It’s just that usually mortgages have better terms than HELs.

That all said, please be sure she actually meant no closing costs and didn’t mean no lender closing costs, i.e., Sections A and B in a Loan Estimate. Title insurance, settlement, and government costs would still apply if she was playing fast and loose and meant they won’t charge you any closing costs while carefully avoiding mention of third-party costs.
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