Refinance Mega Thread

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
psychoslowmatic
Posts: 227
Joined: Fri Jul 19, 2013 2:34 pm

Re: Refinance Mega Thread

Post by psychoslowmatic »

Why aren’t people just applying to Better through Bankrate? Can you not get the amex credit too?
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

psychoslowmatic wrote: Tue Sep 14, 2021 9:26 pm Why aren’t people just applying to Better through Bankrate? Can you not get the amex credit too?
You can add the credit later.

Applying with Better through bankrate doesn't actually give you the rates shown automatically. You still have to show them the screenshot to match the bankrate quote.
eltron
Posts: 289
Joined: Wed Apr 06, 2016 2:25 pm

Re: Refinance Mega Thread

Post by eltron »

mschurner wrote: Tue Sep 14, 2021 6:41 pm
eltron wrote: Thu Sep 09, 2021 12:59 pm I'm trying to get a quote for service title/fees from Radian but the one person from Radian told me they can't quote me directly, that they'd need Better to contact them for a quote. Better did, and Radian told them the opposite - basically they couldn't give Better the quote.

Does anyone have the email/contact info they used to get in touch with someone at Radian that was willing to help and give a quote based on the loan estimate?

Not real sure why this is such an issue to just get a quote to see if they are cheaper.
I had the same exact issue. Radian just told me Better can reach out to them directly. They refused to give me the quote. Have you sorted this out? Did you reach out to another title company?
I gave up on it. I just want this refi to be done with and if it's going to cost me a few hundred because Radian wasn't interested, so be it.
lane7068
Posts: 24
Joined: Sun Feb 23, 2020 12:10 am

Re: Refinance Mega Thread

Post by lane7068 »

UPDATE:

Went with Better as suggested. Closing costs dropped down about 4k, and locked back in the original 2.375 instead of the 2.875 offered, which saves about $70 bucks a month.

At what point is it smart to call Wells Fargo and have them scrap my application, or is it best to wait just in case?
BoglerInProgress
Posts: 12
Joined: Sun Jul 11, 2021 3:46 pm

Re: Refinance Mega Thread

Post by BoglerInProgress »

Another success story (so far). Thanks to everyone who's posted above and shared intel.

We closed on our first family home purchase in mid-July. Our offer was accepted in early June, at which time we entered rate lock with a local brick-and-mortar lender at 2.875% (30-year). Rates kept improving, so after educating myself with this thread, I began pursuing a quick refi in early August.

Loan Cabin outcompeted anything on Bankrate. I got them to e-mail a formal Loan Estimate and Better matched it exactly. 2.625% and more than $4k in lender credits, an amount that approximately doubled closing costs. I also opened a new personal AmEx card during my Better process to take advantage of the $2k offer on top of this. That new credit inquiry was a non-issue.

As others have mentioned, although lender credits minus closing costs netted me a balance in excess of $2k, Better couldn't cut a direct check that large. They absorbed the difference by (1) building in a robust overpayment safety cushion into the payoff to my prior servicer, which the prior servicer will simply refund me; and (2) reducing the principal by a few hundred dollars, such that our new loan is slightly smaller than even the correct payoff amount. This brought my remaining direct refund from Better beneath $2k (not including AmEx).

One word of caution. My Better loan officer was friendly and helpful, but everybody there seems busy and stretched thin. I had to politely nag him to nag other people like crazy. Frequent follow-ups on outstanding items. Me catching inaccuracies in draft closing documents. I was initially assured Better would almost certainly accept our recent appraisal from June and told not to pay $550 and schedule one — but after multiple weeks' delay, Better decided they couldn't accept it and we'd need a new appraisal after all. This delay pushed settlement well past our initial rate lock end date. Fortunately, they took responsibility and ate the cost of extending rate lock.

We closed with a mobile notary on Friday and the loan funds today.

I'm very happy with our end result, but suggest that folks watch their process carefully and politely badger the heck out of your liaison if you need to.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

I lucked out with my team. Any time I had a question or update, I got a response in less than a day, sometimes within an hour. That was with all 3 people involved with the process, the original loan officer, processing expert during underwriting, and closing expert.
SpiritualAlp
Posts: 14
Joined: Fri Feb 26, 2016 1:03 pm

Re: Refinance Mega Thread

Post by SpiritualAlp »

Escrow Balance : We closed the refinance with better on 8/10 . Amerihome website says they escrow balance cheque has been dispatched 0n 09/01/2021. I still haven't received the cheque . Is it normal ?
mschurner
Posts: 104
Joined: Sun Sep 23, 2018 11:33 pm

Re: Refinance Mega Thread

Post by mschurner »

Requesting suggestion:

With Better.com I got 2.125% with $1500 lender credit for 15 year loan. As long as rate remains low I'm certain I'd refinance either with Better.com or someone else in the next six months to one year. Why shouldn't I go for 2.25% or even 2.375% with higher lender credit?
Will the lender credit taxable by IRS? If I get the credit of over $2000, will this be considered cash out refinance even thought loan rate remains same with current lender? It looks simple. What I'm missing here?

PS: Its very unlikely I'd keep the loan for 15 years even if the rate goes high. Either I'd move to new home or it will be paid.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

SpiritualAlp wrote: Wed Sep 15, 2021 2:02 pm Escrow Balance : We closed the refinance with better on 8/10 . Amerihome website says they escrow balance cheque has been dispatched 0n 09/01/2021. I still haven't received the cheque . Is it normal ?
Seems long. I think the regulation says it should be refunded in 20 business days. Mailing the check on 9/1 would be in compliance. It might be a problem with the carrier if they indeed sent it out on 9/1.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

mschurner wrote: Wed Sep 15, 2021 2:30 pm Requesting suggestion:

With Better.com I got 2.125% with $1500 lender credit for 15 year loan. As long as rate remains low I'm certain I'd refinance either with Better.com or someone else in the next six months to one year. Why shouldn't I go for 2.25% or even 2.375% with higher lender credit?
Will the lender credit taxable by IRS? If I get the credit of over $2000, will this be considered cash out refinance even thought loan rate remains same with current lender? It looks simple. What I'm missing here?

PS: Its very unlikely I'd keep the loan for 15 years even if the rate goes high. Either I'd move to new home or it will be paid.
That's how I would do it. I've done 3 refinance in the last 2 years, stepping the rate down and picking up credits each time. You're not missing anything other than the "bet" that interest rates won't rise. For me, there is a high chance for me to move and sell my house in the next couple years, so stepping down the rate and picking up credits made the most sense. Going for lower rates only make sense if you plan to hold the loan long term. Things like dropping interest rates, selling your house, or making extra principal payments are all contrary to considering a lower rate option.

The credits are not taxable.
SpiritualAlp
Posts: 14
Joined: Fri Feb 26, 2016 1:03 pm

Re: Refinance Mega Thread

Post by SpiritualAlp »

MrJedi wrote: Wed Sep 15, 2021 2:35 pm
SpiritualAlp wrote: Wed Sep 15, 2021 2:02 pm Escrow Balance : We closed the refinance with better on 8/10 . Amerihome website says they escrow balance cheque has been dispatched 0n 09/01/2021. I still haven't received the cheque . Is it normal ?
Seems long. I think the regulation says it should be refunded in 20 business days. Mailing the check on 9/1 would be in compliance. It might be a problem with the carrier if they indeed sent it out on 9/1.
I thought so too. During my prev refinance the money was deposited almost in 2 weeks.. This seems to be ridiculously long time and my refund cheque is for 10k
Mako
Posts: 408
Joined: Wed Feb 28, 2007 9:34 am
Location: MD

Re: Refinance Mega Thread

Post by Mako »

MrJedi wrote: Wed Sep 15, 2021 2:35 pm
SpiritualAlp wrote: Wed Sep 15, 2021 2:02 pm Escrow Balance : We closed the refinance with better on 8/10 . Amerihome website says they escrow balance cheque has been dispatched 0n 09/01/2021. I still haven't received the cheque . Is it normal ?
Seems long. I think the regulation says it should be refunded in 20 business days. Mailing the check on 9/1 would be in compliance. It might be a problem with the carrier if they indeed sent it out on 9/1.
Mail is still not super reliable here and sometimes takes longer than what used to be normal. If I was expecting a check I’d sign up for informed delivery. Then at least you know if it got to the closest post office.
GoldenFinch
Posts: 2435
Joined: Mon Nov 10, 2014 11:34 pm

Re: Refinance Mega Thread

Post by GoldenFinch »

If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
tj
Posts: 5244
Joined: Thu Dec 24, 2009 12:10 am

Re: Refinance Mega Thread

Post by tj »

GoldenFinch wrote: Wed Sep 15, 2021 3:13 pm If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
If you can find another lender that's more than $2000 cheaper, of course you should just go with the other one, unless you get Better to match it and get additional $2k.
User avatar
Nate79
Posts: 7457
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Refinance Mega Thread

Post by Nate79 »

GoldenFinch wrote: Wed Sep 15, 2021 3:13 pm If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
Why can't you get Better to match the offer you got from the other lender and then also get the Amex credit on top of it @ Better?
GoldenFinch
Posts: 2435
Joined: Mon Nov 10, 2014 11:34 pm

Re: Refinance Mega Thread

Post by GoldenFinch »

tj wrote: Wed Sep 15, 2021 3:15 pm
GoldenFinch wrote: Wed Sep 15, 2021 3:13 pm If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
If you can find another lender that's more than $2000 cheaper, of course you should just go with the other one, unless you get Better to match it and get additional $2k.
Thanks. I did not ask Better to match fees and I doubt they would. I guess I’ll try.
TheCowbell
Posts: 145
Joined: Thu Jan 22, 2009 11:20 am

Re: Refinance Mega Thread

Post by TheCowbell »

I am 2 rate resets into my 5/5 ARM from Penfed, originally taken out in 2011. I feel like I hit the jackpot back when I originally got the loan (true no-closing cost which saved me almost $20k in transfer taxes). My rate has gone down every reset, most recently going to 2.375. I'm expecting another reset in 2024, at which point it could go as high as 4.375. What would you do, let it ride or incur some expense to lock it in? Won't be leaving the house for at least 10 - 15 more years.
tj
Posts: 5244
Joined: Thu Dec 24, 2009 12:10 am

Re: Refinance Mega Thread

Post by tj »

GoldenFinch wrote: Wed Sep 15, 2021 3:28 pm
tj wrote: Wed Sep 15, 2021 3:15 pm
GoldenFinch wrote: Wed Sep 15, 2021 3:13 pm If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
If you can find another lender that's more than $2000 cheaper, of course you should just go with the other one, unless you get Better to match it and get additional $2k.
Thanks. I did not ask Better to match fees and I doubt they would. I guess I’ll try.
What lender was more than $2k cheaper than Better?
GoldenFinch
Posts: 2435
Joined: Mon Nov 10, 2014 11:34 pm

Re: Refinance Mega Thread

Post by GoldenFinch »

tj wrote: Wed Sep 15, 2021 3:48 pm
GoldenFinch wrote: Wed Sep 15, 2021 3:28 pm
tj wrote: Wed Sep 15, 2021 3:15 pm
GoldenFinch wrote: Wed Sep 15, 2021 3:13 pm If rate is the same at other lender as it is at Better, but overall cost (apr) is less even with AMEx credit factored in at other lender, shouldn't I just go with other lender? It looks like in my situation I save money that way, but everyone here seems to be going for the AMEX cash back.

I’m feeling like I’m not researching well enough or something.
If you can find another lender that's more than $2000 cheaper, of course you should just go with the other one, unless you get Better to match it and get additional $2k.

Thanks. I did not ask Better to match fees and I doubt they would. I guess I’ll try.
What lender was more than $2k cheaper than Better?
AimLoan had much lower fees for a cash out refi with the same interest rate.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

It's pretty well demonstrated that Better does not offer good rates without matching/competition. There are a lot of successes with matching and then stacking the Amex on top, so I wouldn't be so doubtful. I just did it last month with a LenderFi estimate matched by Better.
Mako
Posts: 408
Joined: Wed Feb 28, 2007 9:34 am
Location: MD

Re: Refinance Mega Thread

Post by Mako »

Better improved their original pricing by about a whole point or over $4k on my loan just by matching Bankrate. If you’re comparing to their website they may very well match, they seem to have a lot leeway to go down.
GoldenFinch
Posts: 2435
Joined: Mon Nov 10, 2014 11:34 pm

Re: Refinance Mega Thread

Post by GoldenFinch »

^^^I will try. Thank you all!
mschurner
Posts: 104
Joined: Sun Sep 23, 2018 11:33 pm

Re: Refinance Mega Thread

Post by mschurner »

MrJedi wrote: Wed Sep 15, 2021 2:42 pm
mschurner wrote: Wed Sep 15, 2021 2:30 pm Requesting suggestion:

With Better.com I got 2.125% with $1500 lender credit for 15 year loan. As long as rate remains low I'm certain I'd refinance either with Better.com or someone else in the next six months to one year. Why shouldn't I go for 2.25% or even 2.375% with higher lender credit?
Will the lender credit taxable by IRS? If I get the credit of over $2000, will this be considered cash out refinance even thought loan rate remains same with current lender? It looks simple. What I'm missing here?

PS: Its very unlikely I'd keep the loan for 15 years even if the rate goes high. Either I'd move to new home or it will be paid.
That's how I would do it. I've done 3 refinance in the last 2 years, stepping the rate down and picking up credits each time. You're not missing anything other than the "bet" that interest rates won't rise. For me, there is a high chance for me to move and sell my house in the next couple years, so stepping down the rate and picking up credits made the most sense. Going for lower rates only make sense if you plan to hold the loan long term. Things like dropping interest rates, selling your house, or making extra principal payments are all contrary to considering a lower rate option.

The credits are not taxable.
Thank you for the response.
I'm not doing cash out refinance. However difference between the loan amount and payoff quote, I may end up getting some money out.
I read elsewhere I cant do refinance again for six months if I do cash-out refinance.
As per the Better.com If I take more than $2k from the loan, it will be considered cash-out refinance. They are not quite sure about any limitations.
Any thoughts?
User avatar
BrandonBogle
Posts: 4102
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

TheCowbell wrote: Wed Sep 15, 2021 3:45 pm I am 2 rate resets into my 5/5 ARM from Penfed, originally taken out in 2011. I feel like I hit the jackpot back when I originally got the loan (true no-closing cost which saved me almost $20k in transfer taxes). My rate has gone down every reset, most recently going to 2.375. I'm expecting another reset in 2024, at which point it could go as high as 4.375. What would you do, let it ride or incur some expense to lock it in? Won't be leaving the house for at least 10 - 15 more years.
If you can get a 15 or 20 year refi at 2.375% or less with no real cost to you, why not? Otherwise, five years at 2.375% is nothing the sneeze at.
BillWalters
Posts: 277
Joined: Sun Aug 11, 2019 5:21 pm

Re: Refinance Mega Thread

Post by BillWalters »

The 6k Amex credit seems too good to be true but so far everything has gone very smoothly with Better.
TheCowbell
Posts: 145
Joined: Thu Jan 22, 2009 11:20 am

Re: Refinance Mega Thread

Post by TheCowbell »

BrandonBogle wrote: Wed Sep 15, 2021 7:11 pm
TheCowbell wrote: Wed Sep 15, 2021 3:45 pm I am 2 rate resets into my 5/5 ARM from Penfed, originally taken out in 2011. I feel like I hit the jackpot back when I originally got the loan (true no-closing cost which saved me almost $20k in transfer taxes). My rate has gone down every reset, most recently going to 2.375. I'm expecting another reset in 2024, at which point it could go as high as 4.375. What would you do, let it ride or incur some expense to lock it in? Won't be leaving the house for at least 10 - 15 more years.
If you can get a 15 or 20 year refi at 2.375% or less with no real cost to you, why not? Otherwise, five years at 2.375% is nothing the sneeze at.
I change my mind every other week. The problem is, in NYS there are very few true no-cost refi options. The easiest thing to do is wait and see, although if rates end up shooting up I'll kick myself.
User avatar
BrandonBogle
Posts: 4102
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

TheCowbell wrote: Wed Sep 15, 2021 8:55 pm
BrandonBogle wrote: Wed Sep 15, 2021 7:11 pm
TheCowbell wrote: Wed Sep 15, 2021 3:45 pm I am 2 rate resets into my 5/5 ARM from Penfed, originally taken out in 2011. I feel like I hit the jackpot back when I originally got the loan (true no-closing cost which saved me almost $20k in transfer taxes). My rate has gone down every reset, most recently going to 2.375. I'm expecting another reset in 2024, at which point it could go as high as 4.375. What would you do, let it ride or incur some expense to lock it in? Won't be leaving the house for at least 10 - 15 more years.
If you can get a 15 or 20 year refi at 2.375% or less with no real cost to you, why not? Otherwise, five years at 2.375% is nothing the sneeze at.
I change my mind every other week. The problem is, in NYS there are very few true no-cost refi options. The easiest thing to do is wait and see, although if rates end up shooting up I'll kick myself.
Oh yeah, with NY taxes, it will be hard to find a better deal honestly, especially if no-cost is the goal. Back when I had PenFed’s 5/5, they regularly offered an option to pay a small fee and lock in the current advertised rate. You never know, you may find that a worthwhile option if your reset is above the current rate.
mceagle555
Posts: 93
Joined: Mon Aug 31, 2020 12:41 pm

Re: Refinance Mega Thread

Post by mceagle555 »

For anyone close to the $548,250 jumbo loan limit, have any of you thought of intentionally doing a cash-out refi to raise your loan amount to say $550,000, in order to qualify for the $6k Amex credit? (Opposed to the $2k credit)

Example:

- Current Loan Balance: $500k
- Bump up refinance amount to: $550k

Now eligible for $6k Amex credit.

True, you'll get worse rates, but then you could pay down the loan with the $6k credit, and refi to a lower conforming rate afterwards.
achou
Posts: 1
Joined: Thu Sep 16, 2021 12:39 am

Re: Refinance Mega Thread

Post by achou »

Hello, long time follower but first time posting. Can you please guide me what to do for refinance in my case?
Some details about my situation:
Current loan balance: 310K
30 year 2.75%
Last refinanced in dec 2020.
Excellent credit (800+).

I checked better for rates but they are asking for 7K for 2.25%, 4.5K for 2.375%, 2.4K for 2.5%. For costs I am looking at only loan costs, appraisal, title, recording fees, i don't consider escrow and prepaid as part of refinance costs. I have paid 0 cost for refinance previous time.

Can you help me if there are other options to get to a low cost refinance?
I have read about AMEX credit but i dont even have an AMEX card so i dont know if its useful for me.
May be appraisal ($550) can be waived & title fees ($1959) can be brought down, but i am looking to not pay more than 2 years of interest savings.
BillWalters
Posts: 277
Joined: Sun Aug 11, 2019 5:21 pm

Re: Refinance Mega Thread

Post by BillWalters »

Will better match bankrate interest rate after I’ve locked rate?
Fogler
Posts: 15
Joined: Sat Dec 12, 2015 4:37 pm

Re: Refinance Mega Thread

Post by Fogler »

Do guys know whether we can refinance multiple times to make some money. This seems like more lucrative than credit card deals. Currently I have 2.125%/15 year, and it seems like I will net $1000 after all the costs to keep the same rate. I find this process very easy and even notary comes to home to get signatures :happy
Jags4186
Posts: 6091
Joined: Wed Jun 18, 2014 7:12 pm

Re: Refinance Mega Thread

Post by Jags4186 »

Fogler wrote: Thu Sep 16, 2021 6:59 am Do guys know whether we can refinance multiple times to make some money. This seems like more lucrative than credit card deals. Currently I have 2.125%/15 year, and it seems like I will net $1000 after all the costs to keep the same rate. I find this process very easy and even notary comes to home to get signatures :happy
As long as rates are going down and you have room to
move down/stay flat and have a lender credit large enough to put money back in your pocket then you can continue to do so. Some/many lenders have 6 month restrictions where you need to hold a loan for 6 months before refinancing again.
Mako
Posts: 408
Joined: Wed Feb 28, 2007 9:34 am
Location: MD

Re: Refinance Mega Thread

Post by Mako »

Fogler wrote: Thu Sep 16, 2021 6:59 am Do guys know whether we can refinance multiple times to make some money. This seems like more lucrative than credit card deals. Currently I have 2.125%/15 year, and it seems like I will net $1000 after all the costs to keep the same rate. I find this process very easy and even notary comes to home to get signatures :happy
There is something called the net tangible benefit requirement. Google for more info, but the refinance, other than simply the negative points, needs to benefit you in some way. Like better interest rate, better monthly payments, lower term. So immediately refinancing your 2.125 15 year loan to a 2.25 15 year to pocket the negative points probably won't fly. Different states and different lenders might have their own requirements. Moving between 15 year and 30 year might be good enough (moving to 30 improves your monthly payment, moving to 15 improves your term).
saltyWaterfall87
Posts: 9
Joined: Sat Sep 04, 2021 9:39 am

Re: Refinance Mega Thread

Post by saltyWaterfall87 »

Refinancing with Better. At "Closing is right around the corner" and the loan estimate has been hidden/not updated for the past 3 days or so. Checking via the costs tab just now for some reason my negative lender costs became $1500 even though the total was the same as before (including escrow funding) Not sure what they're doing but this last stage is very strange and taking awhile. Lock was 60 days and I didn't even ask for that so there's definitely no rush, just strange how much radio silence there's been lately.
User avatar
BrandonBogle
Posts: 4102
Joined: Mon Jan 28, 2013 11:19 pm

Re: Refinance Mega Thread

Post by BrandonBogle »

saltyWaterfall87 wrote: Thu Sep 16, 2021 9:34 am Refinancing with Better. At "Closing is right around the corner" and the loan estimate has been hidden/not updated for the past 3 days or so. Checking via the costs tab just now for some reason my negative lender costs became $1500 even though the total was the same as before (including escrow funding) Not sure what they're doing but this last stage is very strange and taking awhile. Lock was 60 days and I didn't even ask for that so there's definitely no rush, just strange how much radio silence there's been lately.
There is a back door to generate a new loan estimate, but the way they process their updates means at this stage, it may also end up with stale data. They are preparing your initial closing disclosures and you should get that today/tomorrow. That should clear up the confusion on what has changed, or if that is just an artifact of how the info is displayed.
atx1202
Posts: 10
Joined: Fri Sep 11, 2020 11:09 am

Re: Refinance Mega Thread

Post by atx1202 »

Do you mind sharing the back door approach?
saltyWaterfall87
Posts: 9
Joined: Sat Sep 04, 2021 9:39 am

Re: Refinance Mega Thread

Post by saltyWaterfall87 »

BrandonBogle wrote: Thu Sep 16, 2021 9:37 am
saltyWaterfall87 wrote: Thu Sep 16, 2021 9:34 am Refinancing with Better. At "Closing is right around the corner" and the loan estimate has been hidden/not updated for the past 3 days or so. Checking via the costs tab just now for some reason my negative lender costs became $1500 even though the total was the same as before (including escrow funding) Not sure what they're doing but this last stage is very strange and taking awhile. Lock was 60 days and I didn't even ask for that so there's definitely no rush, just strange how much radio silence there's been lately.
There is a back door to generate a new loan estimate, but the way they process their updates means at this stage, it may also end up with stale data. They are preparing your initial closing disclosures and you should get that today/tomorrow. That should clear up the confusion on what has changed, or if that is just an artifact of how the info is displayed.
Thanks, you were exactly right. Got it later in the day. Everything as expected except I initially got a task to prove I paid my taxes due in the beginning of Oct but they haven't been disbursed from escrow yet. They might be waiting until 2 weeks before as that is what happened last year, but the due date is 5 days later this time, closing scheduled for next Wednesday. I just don't want to double pay and be in some limbo of taking a long time to get refunded so I'll contact my current servicer tomorrow and find out/hopefully have them do it early.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: Refinance Mega Thread

Post by MrJedi »

saltyWaterfall87 wrote: Thu Sep 16, 2021 9:32 pm
BrandonBogle wrote: Thu Sep 16, 2021 9:37 am
saltyWaterfall87 wrote: Thu Sep 16, 2021 9:34 am Refinancing with Better. At "Closing is right around the corner" and the loan estimate has been hidden/not updated for the past 3 days or so. Checking via the costs tab just now for some reason my negative lender costs became $1500 even though the total was the same as before (including escrow funding) Not sure what they're doing but this last stage is very strange and taking awhile. Lock was 60 days and I didn't even ask for that so there's definitely no rush, just strange how much radio silence there's been lately.
There is a back door to generate a new loan estimate, but the way they process their updates means at this stage, it may also end up with stale data. They are preparing your initial closing disclosures and you should get that today/tomorrow. That should clear up the confusion on what has changed, or if that is just an artifact of how the info is displayed.
Thanks, you were exactly right. Got it later in the day. Everything as expected except I initially got a task to prove I paid my taxes due in the beginning of Oct but they haven't been disbursed from escrow yet. They might be waiting until 2 weeks before as that is what happened last year, but the due date is 5 days later this time, closing scheduled for next Wednesday. I just don't want to double pay and be in some limbo of taking a long time to get refunded so I'll contact my current servicer tomorrow and find out/hopefully have them do it early.
Might be too late for this, but during my last refi I had the property tax rolled into the new loan and then my old servicer was able to hold my escrow payment to avoid a double payment and trying to get a refund back from the township. I was a little surprised that the old servicer was willing to work with me, but they did (Citizens One).
User avatar
black jack
Posts: 729
Joined: Fri Oct 10, 2008 10:13 pm

Re: Refinance Mega Thread

Post by black jack »

TheCowbell wrote: Wed Sep 15, 2021 3:45 pm I am 2 rate resets into my 5/5 ARM from Penfed, originally taken out in 2011. I feel like I hit the jackpot back when I originally got the loan (true no-closing cost which saved me almost $20k in transfer taxes). My rate has gone down every reset, most recently going to 2.375. I'm expecting another reset in 2024, at which point it could go as high as 4.375. What would you do, let it ride or incur some expense to lock it in? Won't be leaving the house for at least 10 - 15 more years.
Doing a refinance outside of Penfed will cost you $20k in transfer taxes? Wow.

I was in a similar situation, with a 5/5 ARM from 2010, currently at 2.375%. I figure that loan rates will probably be higher in 2023, but even if they're not, refinancing into a smaller mortgage at a higher rate would have cut my monthly payment. I could have gotten a no-cost loan (lender credits offsetting loan expenses, but my transfer tax is only around $1,500) at 2.625%, which would have saved me about $220/month.

But after scanning much of this thread, I decided that if someone was willing to loan me money for 30 years at less than 3%, I'd take as much as they'd give me. I did a no-cost cash-out refinance with Better at 2.875% (just closed), cashed out $140k, and will put it in VTI.

Like you, I plan to be in my house another 15 years or more; also, my income is predictable, I'm divorced (so that particular financial cataclysm isn't a future risk), and I don't expect to need the money, so think I can reasonably expect to leave it in the market for 15-20 years or more.

After taxes the cost of the cash is around 2.25%, and inflation will reduce the impact of the monthly payment over time. VTI's (VTSAX's) long-term average return is around 10.5%. Even at 6% this investment would justify itself, and if I get the long-term average, by the 11th year the return on the cash will have exceeded the cost of the mortgage to that point.
We cannot absolutely prove [that they are wrong who say] that we have seen our best days. But so said all who came before us, and with just as much apparent reason. | -T. B. Macaulay (1800-1859)
investor.was.here
Posts: 42
Joined: Thu Oct 08, 2020 2:52 am

Re: Refinance Mega Thread

Post by investor.was.here »

kd2008 wrote: Thu Aug 12, 2021 3:55 pm When did you guys start the refi? It may have been refund of the now eliminated Fannie/Freddie 0.5% refi fee.
End of Aug so, perhaps. Except the number is about 1%. But, we rolled $1800 of refinance costs into the loan so between the two, it sorta adds up.

Where was the .5% fee reflected? I didn't see it in the original estimate anywhere.
RRA
Posts: 17
Joined: Sun Mar 30, 2014 9:47 pm

Re: Refinance Mega Thread

Post by RRA »

How long does it typically take to close?

I started my refi with Direct Home Lending on Aug 31. All of the paperwork requested was submitted to underwriting on Sept 1 and my rate is locked until Sept 30. But I still have not been contacted for an appraisal yet (however my CC was already charged :annoyed ). Closing date on the loan disclosure paperwork says 9/27. Will the credit lock be extended (at no cost to me) if underwriting cannot close in time?
KrisNC
Posts: 12
Joined: Fri Jul 09, 2021 1:41 pm

Re: Refinance Mega Thread

Post by KrisNC »

Anyone had Better change the credit amount before closing?
We locked in a rate with a credit due i.e. paid To borrower, but the loan disclosure shows different amount, and costs paid By Borrower. Appraisal also was waived so was expecting higher amount credited in total.
My LO didn’t know details , but it seems like bait and switch.
Btw this occurred soon after I added Amex info.
Any advice?
TCG236
Posts: 11
Joined: Fri Aug 20, 2021 2:13 am

Re: Refinance Mega Thread

Post by TCG236 »

Does hitting the "Acknowledge disclosure" button only acknowledge receipt of the disclosure? When better dispatches a CD, has it gone through review by someone with specific knowledge of the local transfer taxes/recordation tax rules? Or the final review is not done until the final CD they'll send the day before closing? Throughout the process, there was always this "Transfer Taxes to Montgomery County, MD" of $3,800 in the LE and this is still there in the CD. From talking to people in the forum and a local title company (that we didn't end up using instead of Title365 that Better uses) who have done recent refinances in MD, there was no such taxes. If that's true, there's no way this will go through closing with the bogus taxes, right?
KrisNC
Posts: 12
Joined: Fri Jul 09, 2021 1:41 pm

Re: Refinance Mega Thread

Post by KrisNC »

Not sure if this was response to my previous post.
The change in credit is after taking into account prepaid abs other interest/ payoff amount differences.
The line item “lender credit” amount is reduced by 1/2. Not sure if they adjusted Amex credit with the total.
My assumption was Amex credit and Appraisal waiver was extra.
leviathan
Posts: 94
Joined: Tue Jul 09, 2019 3:03 pm

Re: Refinance Mega Thread

Post by leviathan »

TCG236 wrote: Sat Sep 18, 2021 3:29 pm Does hitting the "Acknowledge disclosure" button only acknowledge receipt of the disclosure? When better dispatches a CD, has it gone through review by someone with specific knowledge of the local transfer taxes/recordation tax rules? Or the final review is not done until the final CD they'll send the day before closing? Throughout the process, there was always this "Transfer Taxes to Montgomery County, MD" of $3,800 in the LE and this is still there in the CD. From talking to people in the forum and a local title company (that we didn't end up using instead of Title365 that Better uses) who have done recent refinances in MD, there was no such taxes. If that's true, there's no way this will go through closing with the bogus taxes, right?
For some reason, this seems to happen often in refinances in MD. It will be fixed in final CD.
GoldenFinch
Posts: 2435
Joined: Mon Nov 10, 2014 11:34 pm

Re: Refinance Mega Thread

Post by GoldenFinch »

KrisNC wrote: Sat Sep 18, 2021 3:16 pm Anyone had Better change the credit amount before closing?
We locked in a rate with a credit due i.e. paid To borrower, but the loan disclosure shows different amount, and costs paid By Borrower. Appraisal also was waived so was expecting higher amount credited in total.
My LO didn’t know details , but it seems like bait and switch.
Btw this occurred soon after I added Amex info.
Any advice?
We had two bait and switch type issues with the Better loan estimate changing, but I caught both changes and they were explained away and changed back. Doesn’t make me feel too good.
karwosts
Posts: 15
Joined: Tue Jan 29, 2019 10:42 am

Re: Refinance Mega Thread

Post by karwosts »

Can someone confirm if the Better.com Amex Credit, which is listed on a loan estimate in section H (Other), is this expected to still be listed on the final closing disclosure, or is it not present there? I'm sure this has been asked a dozen times, but my closing is bearing down on me and I couldn't find this quickly.

I asked my LO if it's supposed to be there but he'll get back to me.
AndThen
Posts: 28
Joined: Sun Mar 01, 2015 4:32 pm

AMEX Authorized USER

Post by AndThen »

My spouse doesn't have an AMEX card, but she is an authorized user on an AMEX card of mine.

The refinance with better would be in her name/income/fico etc., can we use my AMEX account number for the $2000 credit even though she is just an authorized user?

Thanks in advance.
MrJedi
Posts: 1066
Joined: Wed May 06, 2020 11:42 am

Re: AMEX Authorized USER

Post by MrJedi »

AndThen wrote: Mon Sep 20, 2021 10:48 am My spouse doesn't have an AMEX card, but she is an authorized user on an AMEX card of mine.

The refinance with better would be in her name/income/fico etc., can we use my AMEX account number for the $2000 credit even though she is just an authorized user?

Thanks in advance.
You can read the terms here:
https://www.americanexpress.com/en-us/l ... -mortgage/

Additional card members (Amex terminology for authorized user) are not eligible.
This offer is not available to: Additional Card Members

Are you going to be a co borrower on the loan? Or only spouse? Co borrow is eligible for the credit too:
To receive the statement credit, the eligible Card Member must be a borrower or co-borrower(s) on the loan application and enter their own 15-digit card number when prompted by Better Mortgage.
If it's only spouse on the loan and spouse is not a primary card holder, then I don't think there's a way to get it without getting a new card for spouse or adding you to the loan.
adestefan
Posts: 314
Joined: Fri Jan 06, 2017 8:22 pm

Re: Refinance Mega Thread

Post by adestefan »

leviathan wrote: Sat Sep 18, 2021 5:35 pm
TCG236 wrote: Sat Sep 18, 2021 3:29 pm Does hitting the "Acknowledge disclosure" button only acknowledge receipt of the disclosure? When better dispatches a CD, has it gone through review by someone with specific knowledge of the local transfer taxes/recordation tax rules? Or the final review is not done until the final CD they'll send the day before closing? Throughout the process, there was always this "Transfer Taxes to Montgomery County, MD" of $3,800 in the LE and this is still there in the CD. From talking to people in the forum and a local title company (that we didn't end up using instead of Title365 that Better uses) who have done recent refinances in MD, there was no such taxes. If that's true, there's no way this will go through closing with the bogus taxes, right?
For some reason, this seems to happen often in refinances in MD. It will be fixed in final CD.
In Maryland there are different rules if you do cash-out. So they have to wait until the final CD to make sure there's zero cash out.
Post Reply