Refinance Mega Thread

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Indi808 wrote: Thu Jan 07, 2021 2:38 pm narrowed it down to Owning and LenderFi.
...
If the loan terms are essentially the same, any advice on which lender to go with based on personal experience? I feel like Owning and LenderFi are very similar.
If it comes down to all things being equal and having to choose between them, then I would pick LenderFi. I say this because if you go with Owning, they won’t work with you to refi again for 12 months. With LenderFi, it’s only 6 months.
pmorgan2020
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Post by pmorgan2020 »

I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
rene
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Post by rene »

pmorgan2020 wrote: Thu Jan 07, 2021 2:58 pm I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
Almost every servicing company has bad reviews... nobody leaves a good review, only people with bad experience will take the effort to post a review about something as boring as a mortgage servicing company. As for your question to refi... looks like you just missed the recent bottom and rates are rising a bit past few days...s till always good to check on lenderfi website and check their quotes (no email or phone call needed)
soobaerodude
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Post by soobaerodude »

JHC wrote: Thu Jan 07, 2021 1:05 pm I'm trying to pick between refi options right now, open to advice.

Here is the relevant info / options:

State: CA
Outstanding mortgage: $583k
Property Value: $1M

Interactive Mortgage
30 yr fixed, 2.375 APR, zero closing costs (appraisal waived, lender credits to cover title, pay off fees, etc.).

Loan Depot
30 yr fixed, rate of 2.25% with a 2.289% APR ($3k in fees)


Despite the higher APR, my gut is to with Interactive Mortgage with the zero closing costs. Thoughts?
You should ask how much in lender credit LD will give you if you move up to 2.5%. They offered almost 9K in lender credits (3K fees) for my 758K 60% LTV loan in CA
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truenyer
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Post by truenyer »

rene wrote: Thu Jan 07, 2021 3:00 pm
pmorgan2020 wrote: Thu Jan 07, 2021 2:58 pm I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
Almost every servicing company has bad reviews... nobody leaves a good review, only people with bad experience will take the effort to post a review about something as boring as a mortgage servicing company. As for your question to refi... looks like you just missed the recent bottom and rates are rising a bit past few days...s till always good to check on lenderfi website and check their quotes (no email or phone call needed)
pmorgan... note that LF and most other online lenders will sell the loan and possibly the servicing, including to the new processor you have now...
CoastLawyer2030
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Post by CoastLawyer2030 »

I’m surprised at the rates I’m seeing in here.

Value of House = $340,000

Mortgage = $268,000

Income = $160,000/year

Location = Ohio

Credit Score = 760+

I’ve been shopping around for weeks now and the best I’ve received (without buying points, which I do not want to do) is 2.875.
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gas_balloon
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Re: Refinance Mega Thread

Post by gas_balloon »

truenyer wrote: Thu Jan 07, 2021 2:04 pm
gas_balloon wrote: Thu Jan 07, 2021 2:00 pm
truenyer wrote: Thu Jan 07, 2021 1:47 pm
JHC wrote: Thu Jan 07, 2021 1:44 pm In this case both the APR and interest rate are 2.375%, since there are zero fees / origination costs for the loan.
Ok. Just note that the official APR does NOT include lender credits. So the actual APR will be higher. But you can ignore it. You really only need to look at A+B+C+E-lender credits. That result should be $0 or less.
I have seen this applied inconsistently. My owning.com quote included the lender credit so APR and Rate were the same. But IM did not.
I thought it was part of the law that the APR includes the fees, but not lender credits.
I went back and look at my owning.com final disclosures before closing. The way they did it was they made Sections A,B,C,E all $0; and lender credit as $0. So Rates and APR matched.
JHC
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Post by JHC »

truenyer wrote: Thu Jan 07, 2021 1:47 pm
JHC wrote: Thu Jan 07, 2021 1:44 pm In this case both the APR and interest rate are 2.375%, since there are zero fees / origination costs for the loan.
Ok. Just note that the official APR does NOT include lender credits. So the actual APR will be higher. But you can ignore it. You really only need to look at A+B+C+E-lender credits. That result should be $0 or less.
OK thanks, this is helpful. A+B+C+E = $747, and the lender credit is $747. So this LE does appear to be truly 'no fee'.

FWIW, the interest rate on page 1 is listed as 2.375% and the APR on page 3 is also listed as 2.375%. So this LE is showing interest and APR as being the same, even though they are technically giving up lender credits. This might just be because the loan amount is $583k and the fees/lender credit are only $747, so it's not enough to move the APR even a thousandth of a decimal point?
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truenyer
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Post by truenyer »

JHC wrote: Thu Jan 07, 2021 3:45 pm This might just be because the loan amount is $583k and the fees/lender credit are only $747, so it's not enough to move the APR even a thousandth of a decimal point?
Exactly!
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gas_balloon
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Post by gas_balloon »

JHC wrote: Thu Jan 07, 2021 3:45 pm
truenyer wrote: Thu Jan 07, 2021 1:47 pm
JHC wrote: Thu Jan 07, 2021 1:44 pm In this case both the APR and interest rate are 2.375%, since there are zero fees / origination costs for the loan.
Ok. Just note that the official APR does NOT include lender credits. So the actual APR will be higher. But you can ignore it. You really only need to look at A+B+C+E-lender credits. That result should be $0 or less.
OK thanks, this is helpful. A+B+C+E = $747, and the lender credit is $747. So this LE does appear to be truly 'no fee'.

FWIW, the interest rate on page 1 is listed as 2.375% and the APR on page 3 is also listed as 2.375%. So this LE is showing interest and APR as being the same, even though they are technically giving up lender credits. This might just be because the loan amount is $583k and the fees/lender credit are only $747, so it's not enough to move the APR even a thousandth of a decimal point?
APR and rates are both rounded to 3 digits, so its possible that with $747 in A+B+C+E, the apr does not change enough to round differently. In your case A+B+C+E-LenderCredit = 0, so you seem to be fine.
bholm83
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Post by bholm83 »

bad few days as rates have increased...

Called loan depot and they are trying to get me into a 2.5% loan (no cost) but they are saying it might be really difficult :(

Anyone have success with a 2.5% 30 year fixed loan with no costs?
leofox
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Post by leofox »

Should be hard to get with relationship pricing
The average U.S. mortgage rate for a 30-year fixed loan fell two basis points this week to 2.65% – the lowest rate in the Freddie Mac’s Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 24.
pmorgan2020
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Re: Refinance Mega Thread

Post by pmorgan2020 »

truenyer wrote: Thu Jan 07, 2021 3:21 pm
rene wrote: Thu Jan 07, 2021 3:00 pm
pmorgan2020 wrote: Thu Jan 07, 2021 2:58 pm I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
Almost every servicing company has bad reviews... nobody leaves a good review, only people with bad experience will take the effort to post a review about something as boring as a mortgage servicing company. As for your question to refi... looks like you just missed the recent bottom and rates are rising a bit past few days...s till always good to check on lenderfi website and check their quotes (no email or phone call needed)
pmorgan... note that LF and most other online lenders will sell the loan and possibly the servicing, including to the new processor you have now...
Got it. This was my first refinance, if I have to reach out my current lender for a rate match with another online lender,
whom should I contact the current lender who sent a goodbye note or the new servicer?
pmorgan2020
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Re: Refinance Mega Thread

Post by pmorgan2020 »

rene wrote: Thu Jan 07, 2021 3:00 pm
pmorgan2020 wrote: Thu Jan 07, 2021 2:58 pm I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
Almost every servicing company has bad reviews... nobody leaves a good review, only people with bad experience will take the effort to post a review about something as boring as a mortgage servicing company. As for your question to refi... looks like you just missed the recent bottom and rates are rising a bit past few days...s till always good to check on lenderfi website and check their quotes (no email or phone call needed)
My main concern is some of the reviews quoted that the new servicer did not bother to pay property taxes/insurance
from the escrow account.
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truenyer
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Post by truenyer »

pmorgan2020 wrote: Thu Jan 07, 2021 4:40 pm
truenyer wrote: Thu Jan 07, 2021 3:21 pm
rene wrote: Thu Jan 07, 2021 3:00 pm
pmorgan2020 wrote: Thu Jan 07, 2021 2:58 pm I recently refinanced to a 30 yr loan at 2.5 rate of interest.
I just received a goodbye letter from the lender who refinanced the loan stating the loan has been transferred to a new loan processing agency and this new agency is notorious and has several bad reviews, should I start looking to refinance again with another lender? Is lender fi good?
Almost every servicing company has bad reviews... nobody leaves a good review, only people with bad experience will take the effort to post a review about something as boring as a mortgage servicing company. As for your question to refi... looks like you just missed the recent bottom and rates are rising a bit past few days...s till always good to check on lenderfi website and check their quotes (no email or phone call needed)
pmorgan... note that LF and most other online lenders will sell the loan and possibly the servicing, including to the new processor you have now...
Got it. This was my first refinance, if I have to reach out my current lender for a rate match with another online lender,
whom should I contact the current lender who sent a goodbye note or the new servicer?
I'm not quite sure what you mean. If you are shopping around for a refi, you'll have to apply like normal. You can reach out to your original loan officer if you want to get a quote from them for a new loan.
pmorgan2020
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Post by pmorgan2020 »

Yes I meant new loan with current lender with a better rate, the title costs are ridiculously high in my area so I would like to check with current lender before moving to another lender.
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truenyer
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Post by truenyer »

pmorgan2020 wrote: Thu Jan 07, 2021 5:13 pm Yes I meant new loan with current lender with a better rate, the title costs are ridiculously high in my area so I would like to check with current lender before moving to another lender.
If your current lender won't change your rate without a refi (chances of that are small) you will still have to refi from scratch. Even your current lender will require title insurance and recording fees because it's a new note.
gquogue
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Post by gquogue »

Sharing a downstate NY experience. Thanks all above for great info.

Reached out to Better and LD since my understanding from this thread is many of the typical names cited here don't work in NY.

My mortgage is 460k with 24.5 years remaining at 3.75% fixed.

The experiences were very different. I was more comfortable with the sales experience with LD.

Ended up locking in rate over phone with LD on first conversation which was yesterday morning (2.99% 30 year with closing costs of $1800.....this was the final deal after they added roughly an extra $2k in credits this morning....simply asked him for some extra juice in exchange for my verbal commitment to not keep shopping). In my county part of the challenge is there are massive transfer taxes even when only refinancing....those alone are 1% of the mortgage amount plus NYS tax as well. So offsetting almost all closing costs with lender credits here has a bigger impact on the final rate than it would in other states/counties without such large transfer taxes.

Overall even though I had visions of a 2.5% result I'm thrilled given the particular reasons above. Appraisal was waived, and the above structure does not require escrow (which if I had opted for would have lowered my rate by 1/8 of a point.....with the uncertainty with who will ultimately service my loan I decided to no longer escrow, plus I like the feeling of giving me even more independence from my mortgage company). Website was very easy to use. Closing estimated in a few weeks...fingers crossed it will be sooner to get it done.
LiveMusic
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Post by LiveMusic »

Thanks to everyone who has been providing inputs on the refi process. This thread is very helpful

I eventually locked my rates with Better(2%, 15 year, About 200$ credit). Title service charges(section C) are coming to about 2000$, which seems pretty high.

I have seen Radian being discussed on this thread as reasonable for title services. How can I initiate the procedure with them? Is there a number I need to call? I went on their website, but it took me to a page where it asks my company name etc. Not exactly sure I am doing the right thing.

The phone#s I found on their website is. Should I call this # to know more?
Title Services
800.646.8258 ext. 8245
learn2invest2day
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Post by learn2invest2day »

Hi,

I am in the process of closing my loan with LoanDepot. I noticed that they made a mistake in the acquired price of the home less by ~100K. While this won't affect the loan terms, I want to check if this matters when I eventually sell the house. From my discussion with the LO, he mentioned that it does not matter.

1. Is this true that the acquired price does not matter when selling i.e ( if I acquired at 100K vs say 500K and sell the house at 1M), the LTCG is calculated based on difference between 1M and any existing loan amount - selling costs? If I completely pay off house, will I pay be paying LTCG on the whole 1M? The 100K or 500K do not matter in either case?

I have signed the notary and have till tomorrow to dispute any changes. He mentioned there might be an additional fee if I have to go and change these details (which I am not sure of). Also, is there a way to correct the acquired price once the loan funds have been disbursed?

Thank you for your suggestions.
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truenyer
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Post by truenyer »

learn2invest2day wrote: Thu Jan 07, 2021 7:29 pm 1. Is this true that the acquired price does not matter when selling i.e ( if I acquired at 100K vs say 500K and sell the house at 1M), the LTCG is calculated based on difference between 1M and any existing loan amount - selling costs? If I completely pay off house, will I pay be paying LTCG on the whole 1M? The 100K or 500K do not matter in either case?
Your cost basis is most certainly not decided by the purchase price listed on your current note. That should come from the property records from the actual sale.
ssel
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Post by ssel »

JHC wrote: Thu Jan 07, 2021 1:44 pm In this case both the APR and interest rate are 2.375%, since there are zero fees / origination costs for the loan.

And yes, the monthly payments would be $2,266 vs $2,228 when I compare them on banrkate's calculator. So only a $38 difference per month, which means the break even timeline would be 79 months, I believe ($3000/$38 = 79).

Thanks for making me think that through, I think the zero cost at 2.375% is the way I will go.
That's not the right way to determine the break-even point. After 79 months (80 really) you'll have paid the same total amount in either case. But with the lower rate, more of that total payment will have gone toward principal. And to be fully accurate you should also adjust for the time value of money.

I'm not saying these details would tip the balance in favor of the other loan, but thought I'd point it out.
surfstar
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Post by surfstar »

leofox wrote: Thu Jan 07, 2021 4:37 pm The average U.S. mortgage rate for a 30-year fixed loan fell two basis points this week to 2.65% – the lowest rate in the Freddie Mac’s Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 24.
That data is lagging, though. If you're not already locked in, you saw a definite increase in the last two days.

http://www.mortgagenewsdaily.com/mortga ... daily.aspx
learn2invest2day
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Post by learn2invest2day »

truenyer wrote: Thu Jan 07, 2021 7:32 pm
learn2invest2day wrote: Thu Jan 07, 2021 7:29 pm 1. Is this true that the acquired price does not matter when selling i.e ( if I acquired at 100K vs say 500K and sell the house at 1M), the LTCG is calculated based on difference between 1M and any existing loan amount - selling costs? If I completely pay off house, will I pay be paying LTCG on the whole 1M? The 100K or 500K do not matter in either case?
Your cost basis is most certainly not decided by the purchase price listed on your current note. That should come from the property records from the actual sale.
Thanks @truenyer for the helpful information. In that case, I guess its fine to have a different acquired price with the newlender. Is there a way I can verify the property records online or by calling the local county etc? I have my copy from the transaction (Purchase Contract and Addendums..) incase the amount is different and I need to dispute it.
fasterfene
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Post by fasterfene »

Hi folks,

I was curious to hear the forums thoughts/opinions on the refinance I'm currently doing with BoA. I'm a Merrill Lynch wealth management customer with over a $1M in assets in BoA/ML:

Loan Type: NonConf Fixed 30 years
Interest Rate: 2.875%
Loan amount: $1,374,000
Property Value: $2,050,000
LTV: 67.52%
Lender Credit: ~$4200
Cost to me: ~$250
Monthly payments: $5703.

My current loan is a 5/1 ARM with 3 years left on it, with the same loan amount and an interest rate of 2.625%. My monthly payments currently are about $5565. The refinance will help me lock in a 30 year rate.

Do you think this is a good deal? I shopped around with the usual suspects like Rocket Mortgage, Loan Depot, Chase and other banks, who either could not beat the rate, or did not offer loans at that amount. The only bank who could beat it was Wells Fargo, but they could only do it after I had moved the $1M to Wells Fargo that I wasn't prepared to do, without a commitment from them to actually give me the lower rate.

Any thoughts on whether I should be wait or pull the trigger on my refinance?
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truenyer
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Post by truenyer »

learn2invest2day wrote: Thu Jan 07, 2021 7:43 pm
truenyer wrote: Thu Jan 07, 2021 7:32 pm
learn2invest2day wrote: Thu Jan 07, 2021 7:29 pm 1. Is this true that the acquired price does not matter when selling i.e ( if I acquired at 100K vs say 500K and sell the house at 1M), the LTCG is calculated based on difference between 1M and any existing loan amount - selling costs? If I completely pay off house, will I pay be paying LTCG on the whole 1M? The 100K or 500K do not matter in either case?
Your cost basis is most certainly not decided by the purchase price listed on your current note. That should come from the property records from the actual sale.
Thanks @truenyer for the helpful information. In that case, I guess its fine to have a different acquired price with the newlender. Is there a way I can verify the property records online or by calling the local county etc? I have my copy from the transaction (Purchase Contract and Addendums..) incase the amount is different and I need to dispute it.
Depending on your county you can probably look up up the records online. You should probably confirm that to be sure. I am not a lawyer.
pmorgan2020
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Post by pmorgan2020 »

truenyer wrote: Thu Jan 07, 2021 5:31 pm
pmorgan2020 wrote: Thu Jan 07, 2021 5:13 pm Yes I meant new loan with current lender with a better rate, the title costs are ridiculously high in my area so I would like to check with current lender before moving to another lender.
If your current lender won't change your rate without a refi (chances of that are small) you will still have to refi from scratch. Even your current lender will require title insurance and recording fees because it's a new note.
Aah... I did not know that so even if I refinance with the same lender from scratch I still have to go through getting the lender title yet again? Thanks this is useful piece of information and will help me make a better decision.
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truenyer
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Post by truenyer »

pmorgan2020 wrote: Thu Jan 07, 2021 8:23 pm
truenyer wrote: Thu Jan 07, 2021 5:31 pm
pmorgan2020 wrote: Thu Jan 07, 2021 5:13 pm Yes I meant new loan with current lender with a better rate, the title costs are ridiculously high in my area so I would like to check with current lender before moving to another lender.
If your current lender won't change your rate without a refi (chances of that are small) you will still have to refi from scratch. Even your current lender will require title insurance and recording fees because it's a new note.
Aah... I did not know that so even if I refinance with the same lender from scratch I still have to go through getting the lender title yet again? Thanks this is useful piece of information and will help me make a better decision.
Yup. Many title agencies have a reissue rate which is a little cheaper because they don’t do a full title search.
learn2invest2day
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Post by learn2invest2day »

truenyer wrote: Thu Jan 07, 2021 7:49 pm
learn2invest2day wrote: Thu Jan 07, 2021 7:43 pm
truenyer wrote: Thu Jan 07, 2021 7:32 pm
learn2invest2day wrote: Thu Jan 07, 2021 7:29 pm 1. Is this true that the acquired price does not matter when selling i.e ( if I acquired at 100K vs say 500K and sell the house at 1M), the LTCG is calculated based on difference between 1M and any existing loan amount - selling costs? If I completely pay off house, will I pay be paying LTCG on the whole 1M? The 100K or 500K do not matter in either case?
Your cost basis is most certainly not decided by the purchase price listed on your current note. That should come from the property records from the actual sale.
Thanks @truenyer for the helpful information. In that case, I guess its fine to have a different acquired price with the newlender. Is there a way I can verify the property records online or by calling the local county etc? I have my copy from the transaction (Purchase Contract and Addendums..) incase the amount is different and I need to dispute it.
Depending on your county you can probably look up up the records online. You should probably confirm that to be sure. I am not a lawyer.
Thank you, I will check with the county via phone/in-person. Online doesn't seem to show the purchase history.
DoveBogle
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Post by DoveBogle »

fasterfene wrote: Thu Jan 07, 2021 7:47 pm Hi folks,

I was curious to hear the forums thoughts/opinions on the refinance I'm currently doing with BoA. I'm a Merrill Lynch wealth management customer with over a $1M in assets in BoA/ML:

Loan Type: NonConf Fixed 30 years
Interest Rate: 2.875%
Loan amount: $1,374,000
Property Value: $2,050,000
LTV: 67.52%
Lender Credit: ~$4200
Cost to me: ~$250
Monthly payments: $5703.

My current loan is a 5/1 ARM with 3 years left on it, with the same loan amount and an interest rate of 2.625%. My monthly payments currently are about $5565. The refinance will help me lock in a 30 year rate.

Do you think this is a good deal? I shopped around with the usual suspects like Rocket Mortgage, Loan Depot, Chase and other banks, who either could not beat the rate, or did not offer loans at that amount. The only bank who could beat it was Wells Fargo, but they could only do it after I had moved the $1M to Wells Fargo that I wasn't prepared to do, without a commitment from them to actually give me the lower rate.

Any thoughts on whether I should be wait or pull the trigger on my refinance?
I shopped around a bunch an no one could match or beat what LenderFi was offering. RateRabbit was close, as was New American Funding.
JHC
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Post by JHC »

ssel wrote: Thu Jan 07, 2021 7:35 pm
JHC wrote: Thu Jan 07, 2021 1:44 pm In this case both the APR and interest rate are 2.375%, since there are zero fees / origination costs for the loan.

And yes, the monthly payments would be $2,266 vs $2,228 when I compare them on banrkate's calculator. So only a $38 difference per month, which means the break even timeline would be 79 months, I believe ($3000/$38 = 79).

Thanks for making me think that through, I think the zero cost at 2.375% is the way I will go.
That's not the right way to determine the break-even point. After 79 months (80 really) you'll have paid the same total amount in either case. But with the lower rate, more of that total payment will have gone toward principal. And to be fully accurate you should also adjust for the time value of money.

I'm not saying these details would tip the balance in favor of the other loan, but thought I'd point it out.
Fair point. Not worth it to me in this situation to figure out the right way to calculate that break even point, but if anyone does know and wants to post it, it might be helpful for others reading this thread.
srt7
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Post by srt7 »

srt7 wrote: Wed Dec 09, 2020 10:57 pm
mt2k wrote: Tue Dec 08, 2020 6:20 pm
srt7 wrote: Tue Dec 08, 2020 5:49 pm Jumped in to the race to "redo" my refi for 2020 and seeking advice.

My goal is to pay $0 in closing costs (D=A+B+C) so here's the best I've received so far.

Interactive Mortgage is quoting 2.625% with $0 closing costs for both 20 and 30 year terms.

In comparison, Better.com is quoting 2.875% for 30 year and 2.75% for 20 year term.

Still waiting on loan cabin, lenderfi, loan depot etc. to respond.

I'm thinking of going with IM's 30 year option and make payments like 20 year. Am I missing anything?
IMO you should take your IM's 30 yr LE to Better and ask them to match/beat. If they do then lock for 30yrs. When you lock with Better you lock their entire rate sheet. Then switch to 20 years so you get a better rate than 30yrs..
Just locked with Better.com for a 2.5% on 30 year fixed conventional loan with no closing costs (D=A+B+C). Thank you, mt2k, for the suggestion.

Will updated my experience in a few days.
All done!

Dec 9th: locked
Dec 11th: appraisal (couldn't get this waived - FanieMae policy or something)
Dec 17th: appraisal report received
Dec 31st: closed
Jan 6th: funded

Better.com representatives (originator, processor, closer) were professional and thorough in their service to help me through out the process.
TTS330
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Re: Refinance Mega Thread

Post by TTS330 »

samta09 wrote: Tue Dec 15, 2020 6:37 am I am in PA going through a refinance with Better.com and I just called Radian for a quote on Title Services. Their quote is almost half of what a typical local title services company and even Better Settlement Services would charge. I thought the Lender Title Insurance is regulated in PA where this fee is the same across all companies, $2271, but Radian only charges $750.

For those who had used Radian, especially those who reside in PA, how was your experience and are their fees legit compared to traditional title services companies?
Did you ever find an answer to this question? Specifically, about lender's title insurance being regulated, but Radian's ability to undercut? How are they able to do this?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

TTS330 wrote: Thu Jan 07, 2021 11:16 pm Did you ever find an answer to this question? Specifically, about lender's title insurance being regulated, but Radian's ability to undercut? How are they able to do this?
1. Not every aspect of title services have regulated pricing
2. Those that do still don’t mean that a company can’t charge less, they just can’t charge more

For NC, Radian is charging me $450 as a closing fee, $54 for the closing protection letter (even though others charge the regulated amount of $68), and doesn’t charge fees for the Alta 8.1 and 9 endorsements (even though others charge the regulated amount of $21/each). The actual title policy, at least for NC, is charged at the regulated amount.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

surfstar wrote: Thu Jan 07, 2021 7:42 pm
leofox wrote: Thu Jan 07, 2021 4:37 pm The average U.S. mortgage rate for a 30-year fixed loan fell two basis points this week to 2.65% – the lowest rate in the Freddie Mac’s Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 24.
That data is lagging, though. If you're not already locked in, you saw a definite increase in the last two days.

http://www.mortgagenewsdaily.com/mortga ... daily.aspx
That sucks... my dream of a no cost 2% 30 year fixed is probably not happening now...
DoveBogle
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Re: Refinance Mega Thread

Post by DoveBogle »

anon_investor wrote: Fri Jan 08, 2021 12:16 am
surfstar wrote: Thu Jan 07, 2021 7:42 pm
leofox wrote: Thu Jan 07, 2021 4:37 pm The average U.S. mortgage rate for a 30-year fixed loan fell two basis points this week to 2.65% – the lowest rate in the Freddie Mac’s Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 24.
That data is lagging, though. If you're not already locked in, you saw a definite increase in the last two days.

http://www.mortgagenewsdaily.com/mortga ... daily.aspx
That sucks... my dream of a no cost 2% 30 year fixed is probably not happening now...
I think at some point, it’s wise to say to ourselves, I am grateful that rates have dropped so low and lowered my cost of housing... and I can accept that they may not go any lower. :-)
TTS330
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Re: Refinance Mega Thread

Post by TTS330 »

BrandonBogle wrote: Fri Jan 08, 2021 12:10 am
TTS330 wrote: Thu Jan 07, 2021 11:16 pm Did you ever find an answer to this question? Specifically, about lender's title insurance being regulated, but Radian's ability to undercut? How are they able to do this?
1. Not every aspect of title services have regulated pricing
2. Those that do still don’t mean that a company can’t charge less, they just can’t charge more

For NC, Radian is charging me $450 as a closing fee, $54 for the closing protection letter (even though others charge the regulated amount of $68), and doesn’t charge fees for the Alta 8.1 and 9 endorsements (even though others charge the regulated amount of $21/each). The actual title policy, at least for NC, is charged at the regulated amount.
That's so interesting. It makes perfect sense regarding the other aspects of title services not having regulated pricing. My question was more targeted at the actual title insurance premium, which often seems to be the most expensive section C cost. For example, if a state like PA regulates lender's title insurance premium at, let's say $1700 for a specific loan amount (I believe they have a set algorithm to determine this premium based on price and loan amount), then how can Radian come in at half that amount? Are you saying that in regulated states like PA, the title insurance amount is set to be a ceiling rather than a required amount? And that when consumers are told "you can't change this, it's regulated in PA", this assumes that almost every insurer charges the maximum amount set by regulations?
Jrlivin2
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Re: Refinance Mega Thread

Post by Jrlivin2 »

CoastLawyer2030 wrote: Thu Jan 07, 2021 3:25 pm I’m surprised at the rates I’m seeing in here.

Value of House = $340,000

Mortgage = $268,000

Income = $160,000/year

Location = Ohio

Credit Score = 760+

I’ve been shopping around for weeks now and the best I’ve received (without buying points, which I do not want to do) is 2.875.
Our numbers and locations are similar and I had the same question when I began following this thread. I learned that many of the people quoting the extremely low rates have mortgage balances significantly higher than ours. I have also noticed that many (but not all) of the people getting the super low rates reside in California. I got 2.875 with a local credit union in December and am very happy. It wasn’t a no cost refi but we were comfortable paying the closing costs ($1,200 total including all prepaids). I did find lower rates with LenderFi and Provident Funding but our local credit union was amazing in every way and it could not have been easier. From start to finish was less than three weeks. I had one of the worst customer service experiences of my life in 2020 because I tried using a well known retailer to make a large purchase online. For that reason I gravitated toward local lenders for my refinance. Let us know how it works out for you!
jfunk138
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Re: Refinance Mega Thread

Post by jfunk138 »

DoveBogle wrote: Fri Jan 08, 2021 1:14 am
anon_investor wrote: Fri Jan 08, 2021 12:16 am
surfstar wrote: Thu Jan 07, 2021 7:42 pm
leofox wrote: Thu Jan 07, 2021 4:37 pm The average U.S. mortgage rate for a 30-year fixed loan fell two basis points this week to 2.65% – the lowest rate in the Freddie Mac’s Primary Mortgage Market Survey’s near 50-year history. This week’s mortgage rate broke the previous record set on Dec. 24.
That data is lagging, though. If you're not already locked in, you saw a definite increase in the last two days.

http://www.mortgagenewsdaily.com/mortga ... daily.aspx
That sucks... my dream of a no cost 2% 30 year fixed is probably not happening now...
I think at some point, it’s wise to say to ourselves, I am grateful that rates have dropped so low and lowered my cost of housing... and I can accept that they may not go any lower. :-)
I've been through 3 refi's, each time thinking: "rates will never go lower"... Will this be the time my thought is finally correct?
bholm83
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Re: Refinance Mega Thread

Post by bholm83 »

Talked to loan depot rep yesterday and he doesn't think he can get me into a 2.5% 30 yr fixed no cost loan (I'm currently at 2.75%). He said he could have if I called at the beginning of the week :( I'm bummed, but 2.75 is still really good considering it was a full % higher a year ago.

Also, I'm not entirely convinced rates are going to hold steady or climb a little. With covid cases and deaths climbing and hitting records, and unemployment rate not getting much better, there is a possibility I believe rates could go down again.

also, is this website the best place to get current rates:
http://www.mortgagenewsdaily.com/mortga ... daily.aspx

It seems like it is updated daily...
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

bholm83 wrote: Fri Jan 08, 2021 11:42 am Talked to loan depot rep yesterday and he doesn't think he can get me into a 2.5% 30 yr fixed no cost loan (I'm currently at 2.75%). He said he could have if I called at the beginning of the week :( I'm bummed, but 2.75 is still really good considering it was a full % higher a year ago.

Also, I'm not entirely convinced rates are going to hold steady or climb a little. With covid cases and deaths climbing and hitting records, and unemployment rate not getting much better, there is a possibility I believe rates could go down again.

also, is this website the best place to get current rates:
http://www.mortgagenewsdaily.com/mortga ... daily.aspx

It seems like it is updated daily...
I am in the same boat. At 2.75% (30yr fixed) hoping to go down to 2.5% (30 yr fixed) or better at no cost. I believe that mortgage rates are loosely correlated to the yield on the 10 year treasury, which is at its highest since March. I have heard conflicting views as to whether the yield on the 10 year treasury will go up or down from here, but that website is definitely something to monitor.
Soares1234
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Re: Refinance Mega Thread

Post by Soares1234 »

DoveBogle wrote: Thu Jan 07, 2021 9:26 pm
fasterfene wrote: Thu Jan 07, 2021 7:47 pm Hi folks,

I was curious to hear the forums thoughts/opinions on the refinance I'm currently doing with BoA. I'm a Merrill Lynch wealth management customer with over a $1M in assets in BoA/ML:

Loan Type: NonConf Fixed 30 years
Interest Rate: 2.875%
Loan amount: $1,374,000
Property Value: $2,050,000
LTV: 67.52%
Lender Credit: ~$4200
Cost to me: ~$250
Monthly payments: $5703.

My current loan is a 5/1 ARM with 3 years left on it, with the same loan amount and an interest rate of 2.625%. My monthly payments currently are about $5565. The refinance will help me lock in a 30 year rate.

Do you think this is a good deal? I shopped around with the usual suspects like Rocket Mortgage, Loan Depot, Chase and other banks, who either could not beat the rate, or did not offer loans at that amount. The only bank who could beat it was Wells Fargo, but they could only do it after I had moved the $1M to Wells Fargo that I wasn't prepared to do, without a commitment from them to actually give me the lower rate.

Any thoughts on whether I should be wait or pull the trigger on my refinance?
I shopped around a bunch an no one could match or beat what LenderFi was offering. RateRabbit was close, as was New American Funding.

Hi Dave, what was lenderfi offering?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

TTS330 wrote: Fri Jan 08, 2021 8:36 am
BrandonBogle wrote: Fri Jan 08, 2021 12:10 am
TTS330 wrote: Thu Jan 07, 2021 11:16 pm Did you ever find an answer to this question? Specifically, about lender's title insurance being regulated, but Radian's ability to undercut? How are they able to do this?
1. Not every aspect of title services have regulated pricing
2. Those that do still don’t mean that a company can’t charge less, they just can’t charge more

For NC, Radian is charging me $450 as a closing fee, $54 for the closing protection letter (even though others charge the regulated amount of $68), and doesn’t charge fees for the Alta 8.1 and 9 endorsements (even though others charge the regulated amount of $21/each). The actual title policy, at least for NC, is charged at the regulated amount.
That's so interesting. It makes perfect sense regarding the other aspects of title services not having regulated pricing. My question was more targeted at the actual title insurance premium, which often seems to be the most expensive section C cost. For example, if a state like PA regulates lender's title insurance premium at, let's say $1700 for a specific loan amount (I believe they have a set algorithm to determine this premium based on price and loan amount), then how can Radian come in at half that amount? Are you saying that in regulated states like PA, the title insurance amount is set to be a ceiling rather than a required amount? And that when consumers are told "you can't change this, it's regulated in PA", this assumes that almost every insurer charges the maximum amount set by regulations?
The only time I've used Radian is the current refi I am doing, which just moved to the closing today. Thus, I can't be sure how things would look (for NC) until I get my closing disclosures.

That said, I would not at all be surprised if they quote such a price to you, but then on the closing discourse the actual title policy is charged at the regulated amount and some discount is applied to another fee or as a specific line item. This is only a guess, but I have seen with prior refis that if certain final numbers are higher than quoted, my closing disclosures will include something to the effect "plus $XYZ credit due to costs over legal limit quoted" or something to that effect. There are indeed regulations where if a fee was disclosed incorrectly, the borrower is not penalized for it and the entity quoting incorrectly eats the cost. So while I am not say this is how Radian would do it, I can imagine such a scenario.
SEAworld9
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Re: Refinance Mega Thread

Post by SEAworld9 »

just finished our refi with lenderfi (3rd in the last 8 months). great experience.. 7 business days from start to closing; 10 business days start to funding. awesome communication, minimal documentation, and they were super helpful throughout the process.

30-year, 2.5%, $629k loan, 69% LTV.
TTS330
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Re: Refinance Mega Thread

Post by TTS330 »

BrandonBogle wrote: Fri Jan 08, 2021 12:43 pm
TTS330 wrote: Fri Jan 08, 2021 8:36 am
BrandonBogle wrote: Fri Jan 08, 2021 12:10 am
TTS330 wrote: Thu Jan 07, 2021 11:16 pm Did you ever find an answer to this question? Specifically, about lender's title insurance being regulated, but Radian's ability to undercut? How are they able to do this?
1. Not every aspect of title services have regulated pricing
2. Those that do still don’t mean that a company can’t charge less, they just can’t charge more

For NC, Radian is charging me $450 as a closing fee, $54 for the closing protection letter (even though others charge the regulated amount of $68), and doesn’t charge fees for the Alta 8.1 and 9 endorsements (even though others charge the regulated amount of $21/each). The actual title policy, at least for NC, is charged at the regulated amount.
That's so interesting. It makes perfect sense regarding the other aspects of title services not having regulated pricing. My question was more targeted at the actual title insurance premium, which often seems to be the most expensive section C cost. For example, if a state like PA regulates lender's title insurance premium at, let's say $1700 for a specific loan amount (I believe they have a set algorithm to determine this premium based on price and loan amount), then how can Radian come in at half that amount? Are you saying that in regulated states like PA, the title insurance amount is set to be a ceiling rather than a required amount? And that when consumers are told "you can't change this, it's regulated in PA", this assumes that almost every insurer charges the maximum amount set by regulations?
The only time I've used Radian is the current refi I am doing, which just moved to the closing today. Thus, I can't be sure how things would look (for NC) until I get my closing disclosures.

That said, I would not at all be surprised if they quote such a price to you, but then on the closing discourse the actual title policy is charged at the regulated amount and some discount is applied to another fee or as a specific line item. This is only a guess, but I have seen with prior refis that if certain final numbers are higher than quoted, my closing disclosures will include something to the effect "plus $XYZ credit due to costs over legal limit quoted" or something to that effect. There are indeed regulations where if a fee was disclosed incorrectly, the borrower is not penalized for it and the entity quoting incorrectly eats the cost. So while I am not say this is how Radian would do it, I can imagine such a scenario.

Hmm, but if that were to happen, then Radian would make next to nothing in my case. The difference between their quote in Lender's title insurance (about $650) and the most common amount in my other loan estimates of about $1700 (except for LC, which was the same $650 since they presumably use Radian) is just over a thousand dollars. My overall radian quote was about $1100. I doubt they'd do this for 50 bucks or so.

This is baffling.
mt2k
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Re: Refinance Mega Thread

Post by mt2k »

srt7 wrote: Thu Jan 07, 2021 10:48 pm
srt7 wrote: Wed Dec 09, 2020 10:57 pm
mt2k wrote: Tue Dec 08, 2020 6:20 pm
srt7 wrote: Tue Dec 08, 2020 5:49 pm Jumped in to the race to "redo" my refi for 2020 and seeking advice.

My goal is to pay $0 in closing costs (D=A+B+C) so here's the best I've received so far.

Interactive Mortgage is quoting 2.625% with $0 closing costs for both 20 and 30 year terms.

In comparison, Better.com is quoting 2.875% for 30 year and 2.75% for 20 year term.

Still waiting on loan cabin, lenderfi, loan depot etc. to respond.

I'm thinking of going with IM's 30 year option and make payments like 20 year. Am I missing anything?
IMO you should take your IM's 30 yr LE to Better and ask them to match/beat. If they do then lock for 30yrs. When you lock with Better you lock their entire rate sheet. Then switch to 20 years so you get a better rate than 30yrs..
Just locked with Better.com for a 2.5% on 30 year fixed conventional loan with no closing costs (D=A+B+C). Thank you, mt2k, for the suggestion.

Will updated my experience in a few days.
All done!

Dec 9th: locked
Dec 11th: appraisal (couldn't get this waived - FanieMae policy or something)
Dec 17th: appraisal report received
Dec 31st: closed
Jan 6th: funded

Better.com representatives (originator, processor, closer) were professional and thorough in their service to help me through out the process.

Congratulations!
netrammgc
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Location: Yooper

Re: Refinance Mega Thread

Post by netrammgc »

Thanks everyone. My numbers are set. I couldn't obtain any further discounts to move up to 2.125, etc.

LO=Loan Depot
Estimated Value: 270000
Loan amount: 192000
Ratio: 71.1%
Interest Rate: 1.99 (15yr)
A: 1595
B:212
C:814.50
E: 135
J: 1112 in lender credits
Total Closing Costs Minus Prepaids: $1644.50
**Paid ~$20 for LoanDepot's credit check**

Close in exactly one month.

Not sure I could have done any better. TX has a lot of fees. Reached out to 9 LOs and probably angered 8 of them! First Round Winner: Watermark, Second Round Winner: Loan Depot, Third Round Winner: Better (closing costs were lower, but A+B-credits were higher) Final Round Winner: Loan Depot.
giddyup969
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Re: Refinance Mega Thread

Post by giddyup969 »

Does anyone have a recommendation for Title company to use. Section C.

Better.com is providing a good rate 2% 15yr fixed but C=$2770.
netrammgc
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Location: Yooper

Re: Refinance Mega Thread

Post by netrammgc »

giddyup969 wrote: Fri Jan 08, 2021 3:33 pm Does anyone have a recommendation for Title company to use. Section C.

Better.com is providing a good rate 2% 15yr fixed but C=$2770.
Radian.
ag29
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Re: Refinance Mega Thread

Post by ag29 »

Reposting this - this thread moved quickly:

I have been following this thread for quite some time, and wanted to get some advice on my in-process refinance.

Refinance details
State: NJ
Type: Condo
Loan value (LTV): 690k (75%)
Credit score: 800+ for both wife and me
Lender: LoanDepot (I did some shopping around initially with Better and LenderFi but LoanDepot's rates and fees were best; also, I have worked with the same loan office for my initial purchase, then a refinance in 2019 on the same condo)
Rate (currently locked): 2.75%, 30 yr fixed rate, with 0.1 pts
Fees (A+B+C+E) = $1,730 + $445 + $2991 + $443 = ~$5,500

Few questions:
- From what I have seen in this thread, I feel like I am paying too much but not sure if it is a mix of location (NJ) and type (condo)?
- How much could the rate vary with lower LTV? Right now, it is exactly at 75% - could the rates be any better with lower LTV of 70-74.9%?
- I am pretty close to closing (rate is locked, title clear, notary scheduled for next week to close), but am doubting whether I have made the right decision in sticking with the same LoanDepot contact I have worked previously with and trusted?

Welcome any advice from this group.
Thanks
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