Refinance Mega Thread

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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Familyman2012 wrote: Thu Jul 02, 2020 9:36 am But what to understand the details before I sign off on everything.
More people need this mentality!
FBM
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Re: Refinance Mega Thread

Post by FBM »

Locked yesterday with Loan Flight. Hadn't heard of them since I started reading here. 2.75% on a 30 year fixed for $330k. No points if I escrowed but I chose to pay 1/8 point for no escrow. They were able to waive the appraisal requirement so the only fees were title insurance, closing fees, and recording. They had about $1400 for title and closing but on my last refi my title and closing were only about $700 so I called that agency to confirm their prices and then had Loan Flight switch to them.

I also got quotes from Loan Depot and Better. LD had 2.75% with a $750 credit but the $1595 origination killed it. The broker wasn't responding fast enough to try and negotiate. Better had 2.85% and would match Loan Flight but only beat them by $100.

Loan Flight was a little annoying that they needed all the paperwork done before I could lock, but fortunately the pricing held long enough to get the lock.
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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander »

I have done some shopping by telephone calls (no LE comparisons) and my options are as follows (all options are 30 year mortgages):

Quicken:
$529K VA IRRL, 2.25%, $8K closing costs but $2,500 AMEX credit
$529K VA IRRL, 2.75%, $3K closing costs but $2,500 AMEX credit

CF Bank:
$529K conventional, 2.875% closing costs: $2218
$510K VA IRRL, 2.625%, closing costs: $3,700

Loan Depot:
$529K VA IRRL, 2.75%, $12K closing costs
$529K conventional, 2.75%, closing costs: $3,900 (yes, weird that non-conforming is cheaper than conforming)
$510K VA Loan, 2.75%, closing costs: $5,700
$510K conventional, 2.75%, closing costs $4,400

I know the conventional Boglehead wisdom is to do the no cost refi which would basically be the Quicken loan at 2.75%. However, the AMEX credit will not always be around and 2.25% is a really low rate, I would probably never have to refi again. With the cost of the funding fee on the VA loans rates would have to be really really low to get this good of a deal again. Also, the break even point on 2.75% vs. the 2.25% on a $500K+ loan would be about 2 years and I think we will be here longer than that.
kmanjir
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Re: Refinance Mega Thread

Post by kmanjir »

General question about rate locks:

When you lock a rate and the loan application processing begins, do you lock into a specific rate, or do you lock into the rate table that that rate was a part of?

For example, if someone locks a 2.75% rate on Day 1, can they switch to a 2.875% later in the process, if the 2.875% rate was part of the rate table that was originally shared, but the borrower had opted to originally lock on 2.75%?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

Cobra Commander wrote: Thu Jul 02, 2020 10:02 am I know the conventional Boglehead wisdom is to do the no cost refi which would basically be the Quicken loan at 2.75%. However, the AMEX credit will not always be around and 2.25% is a really low rate, I would probably never have to refi again. With the cost of the funding fee on the VA loans rates would have to be really really low to get this good of a deal again. Also, the break even point on 2.75% vs. the 2.25% on a $500K+ loan would be about 2 years and I think we will be here longer than that.
I guess the question is if you feel that even without the promotional Amex credit, could you find a low/no cost conventional loan within 2 years to refi to vs. doing another VA refi?

It is the VA funding fee that makes a refi for you potentially not worthwhile. But within two years, conventional rates may drop enough to make 2.25% at no cost happen. That said, you are also talking about 30-year mortgages, so your principal balance won't change too much in 30 years unless you pay extra, so you may not be at a conventional limit within two years.
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anon_investor
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Re: Refinance Mega Thread

Post by anon_investor »

How soon after completing a refi have other people started another refi?

I completed a refi with Ally at the end of May. My credit reports now show that my old WF mortgage is paid off, but still do not reflect my refi mortgage (which Ally sold to Fannie Mae, but still services through The Money Source). I have no claw back, and I actually got paid (credits larger than costs/fees/taxes), so there is no breakeven to worry about.

I am now begnining to see even lower rate refi mortgages starting to get closer to "no cost" for me.

I am wondering whether the fact that my new refi mortgage is not yet on my credit report will cause any issues if I try to start a new refi app now?
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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander »

BrandonBogle wrote: Thu Jul 02, 2020 10:30 am
Cobra Commander wrote: Thu Jul 02, 2020 10:02 am I know the conventional Boglehead wisdom is to do the no cost refi which would basically be the Quicken loan at 2.75%. However, the AMEX credit will not always be around and 2.25% is a really low rate, I would probably never have to refi again. With the cost of the funding fee on the VA loans rates would have to be really really low to get this good of a deal again. Also, the break even point on 2.75% vs. the 2.25% on a $500K+ loan would be about 2 years and I think we will be here longer than that.
I guess the question is if you feel that even without the promotional Amex credit, could you find a low/no cost conventional loan within 2 years to refi to vs. doing another VA refi?

It is the VA funding fee that makes a refi for you potentially not worthwhile. But within two years, conventional rates may drop enough to make 2.25% at no cost happen. That said, you are also talking about 30-year mortgages, so your principal balance won't change too much in 30 years unless you pay extra, so you may not be at a conventional limit within two years.
I could always pay it down to get to the conforming limit which is why I got quotes for both options so that's not really an issue. I mean, obviously more liquidity is better than less so I have a slight preference to not pay it down but if it meant I could get a better deal I would pay it down. You're right about the VA funding fee being the roadblock although pricing on VA loans generally seems to be better than conventional loans, often enough to offset the funding fee. That said, getting to a true no cost loan below 2.25% would require certain rates being offered to be below 2% which could happen but I wonder how likely it is. Seems like it might be worth taking the gamble on the lower rate now.
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Cobra Commander
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Re: Refinance Mega Thread

Post by Cobra Commander »

kmanjir wrote: Thu Jul 02, 2020 10:15 am General question about rate locks:

When you lock a rate and the loan application processing begins, do you lock into a specific rate, or do you lock into the rate table that that rate was a part of?

For example, if someone locks a 2.75% rate on Day 1, can they switch to a 2.875% later in the process, if the 2.875% rate was part of the rate table that was originally shared, but the borrower had opted to originally lock on 2.75%?
You lock the rate sheet, just make sure they send it to you. I haven't had much luck getting lenders to send me the rate sheet which is somewhat annoying.
soxpatsbos
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Re: Refinance Mega Thread

Post by soxpatsbos »

BrandonBogle wrote: Wed Jul 01, 2020 7:17 pm
soxpatsbos wrote: Wed Jul 01, 2020 7:08 pm
BrandonBogle wrote: Wed Jul 01, 2020 3:51 pm
soxpatsbos wrote: Wed Jul 01, 2020 3:50 pm Feedback requested: Personal home in Bay Area; Value ~ 1.8M, currently on a 30 year fixed mortgage 3.625%, 700K balance. Should I refinance or do a rate modification? 5 years into current mortgage, although the bank only agreed to shave off .125% bringing the new rate to 3.50%
If there is no cost associated with the rated modification, do it, and next week see what you can get for a refi.
Thank you! There is a $950 rate modification fee, imposed by the bank (BOA).
Ahh. That makes quite the difference. I would imagine the rate mod doesn't need an owner in say the next 7 days. I would keep that in you back pocket as you shop around. You will find that a jumbo right now is harder to get done, but I also think you would qualify as a super confirming vs. a jumbo. Personally, I would shop around first to just get a feel for the rates. For instance, Owning.com has 2.99% on a 30-year for up to $765k, complete with $0 in closing costs. That is a much better offer than the BoA rate mod.
Thank you!!
kmanjir
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Re: Refinance Mega Thread

Post by kmanjir »

Cobra Commander wrote: Thu Jul 02, 2020 10:42 am
kmanjir wrote: Thu Jul 02, 2020 10:15 am General question about rate locks:

When you lock a rate and the loan application processing begins, do you lock into a specific rate, or do you lock into the rate table that that rate was a part of?

For example, if someone locks a 2.75% rate on Day 1, can they switch to a 2.875% later in the process, if the 2.875% rate was part of the rate table that was originally shared, but the borrower had opted to originally lock on 2.75%?
You lock the rate sheet, just make sure they send it to you. I haven't had much luck getting lenders to send me the rate sheet which is somewhat annoying.
Thanks for clarifying. Yes, I didn't get the rate sheet, either (but I didn't ask for it explicitly either). Just got the different estimates at different interest rates that were part of that table, and then got an official loan estimate for the rate I locked at. At this time, not looking to switch up or down that table, but was just wondering what the options were, if I were to consider that.
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Re: Refinance Mega Thread

Post by Monsterflockster »

Anyone seeing lower than 2.75 (no points) for a 30 year loan?
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

anon_investor wrote: Thu Jul 02, 2020 10:33 am How soon after completing a refi have other people started another refi?

I completed a refi with Ally at the end of May. My credit reports now show that my old WF mortgage is paid off, but still do not reflect my refi mortgage (which Ally sold to Fannie Mae, but still services through The Money Source). I have no claw back, and I actually got paid (credits larger than costs/fees/taxes), so there is no breakeven to worry about.

I am now begnining to see even lower rate refi mortgages starting to get closer to "no cost" for me.

I am wondering whether the fact that my new refi mortgage is not yet on my credit report will cause any issues if I try to start a new refi app now?
Not really. They will want to see a TMS mortgage statement, which means someone doing some manual work to input your mortgage vs. it coming automatically from your credit report. But still, it's not a problem. My mid-May mortgage still doesn't show and I send them the various lenders a copy of the WF statement for the end of June.
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Re: Refinance Mega Thread

Post by Familyman2012 »

BrandonBogle wrote: Thu Jul 02, 2020 9:39 am
Familyman2012 wrote: Thu Jul 02, 2020 9:36 am But what to understand the details before I sign off on everything.
More people need this mentality!
My next question then would be...

If payoff is $1500 more than the loan amount. should I just pay off right away with cash or should I just roll it in the new loan? Not sure what the best option is especially if we decide to refi again if rates drop.

Not sure how the number work out for my advantage.
Last edited by Familyman2012 on Thu Jul 02, 2020 11:52 am, edited 2 times in total.
soxpatsbos
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Re: Refinance Mega Thread

Post by soxpatsbos »

Monsterflockster wrote: Thu Jul 02, 2020 10:52 am Anyone seeing lower than 2.75 (no points) for a 30 year loan?
And where were you getting 2.75% from? I am also looking for a loan. Thanks!!
Monsterflockster
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Re: Refinance Mega Thread

Post by Monsterflockster »

soxpatsbos wrote: Thu Jul 02, 2020 11:29 am
Monsterflockster wrote: Thu Jul 02, 2020 10:52 am Anyone seeing lower than 2.75 (no points) for a 30 year loan?
And where were you getting 2.75% from? I am also looking for a loan. Thanks!!
Some people have said they got that rate at LenderFI & Losn Depot. (Location, loan to value, dependent of course).
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Re: Refinance Mega Thread

Post by soxpatsbos »

Monsterflockster wrote: Thu Jul 02, 2020 12:11 pm
soxpatsbos wrote: Thu Jul 02, 2020 11:29 am
Monsterflockster wrote: Thu Jul 02, 2020 10:52 am Anyone seeing lower than 2.75 (no points) for a 30 year loan?
And where were you getting 2.75% from? I am also looking for a loan. Thanks!!
Some people have said they got that rate at LenderFI & Losn Depot. (Location, loan to value, dependent of course).
Thanks!!
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Re: Refinance Mega Thread

Post by anon_investor »

BrandonBogle wrote: Thu Jul 02, 2020 10:58 am
anon_investor wrote: Thu Jul 02, 2020 10:33 am How soon after completing a refi have other people started another refi?

I completed a refi with Ally at the end of May. My credit reports now show that my old WF mortgage is paid off, but still do not reflect my refi mortgage (which Ally sold to Fannie Mae, but still services through The Money Source). I have no claw back, and I actually got paid (credits larger than costs/fees/taxes), so there is no breakeven to worry about.

I am now begnining to see even lower rate refi mortgages starting to get closer to "no cost" for me.

I am wondering whether the fact that my new refi mortgage is not yet on my credit report will cause any issues if I try to start a new refi app now?
Not really. They will want to see a TMS mortgage statement, which means someone doing some manual work to input your mortgage vs. it coming automatically from your credit report. But still, it's not a problem. My mid-May mortgage still doesn't show and I send them the various lenders a copy of the WF statement for the end of June.
Thanks! Sounds like you are in a similar siutation as me. I am ready to jump on another refi when I can find my target rate at $0 cost, so far the lowest I have found is around $1k. Sure glad I have no clawback on my recent Ally refi, and netted $2k so I can jump on another refi right away.
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Post by Maven »

We're locked on a 20 yr refi at 2.875% with approx $900 closing costs after the appraisal was waived. A couple weeks into the refi process. We have 27 yrs left on our current 30 yr fixed at 3.375%, $265k balance and house is valued at $645k. Not taking cash out.

A lender I had contacted months ago just reached out with 27 or 30 yr fixed rates at 2.875% and very similar closing costs to the loan we're currently working on. He knew we had been waiting for rates to drop to 3% on a 30 yr back in February. (Not a typo of 27. Just starting where we currently are.)

Which to choose?? Primary goal is snagging a great, lower rate. Job isn't entirely secure in the current economic/pandemic climate so a lowered payment could be great for flexibility. We've owned the house for 7 yrs and expect to stay at least 5 more years if not indefinitely. This is our only debt besides $4k on a car loan at 1.99%. We could always do a 27 or 30 yr at 2.875% lowering our current payment and put the savings towards the principal.

Thoughts?
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Post by BrandonBogle »

anon_investor wrote: Thu Jul 02, 2020 12:29 pm Thanks! Sounds like you are in a similar siutation as me. I am ready to jump on another refi when I can find my target rate at $0 cost, so far the lowest I have found is around $1k. Sure glad I have no clawback on my recent Ally refi, and netted $2k so I can jump on another refi right away.
Yes, I am rate-locked for 2.25% at around no closing costs, once all the title numbers are adjusted (I know what my local agent charges). Still trying to improve things, but that was my trigger point.
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Re: Refinance Mega Thread

Post by JimmyD »

Can anyone direct me to the specifics regarding LenderFi's clawback provision? I refinanced back in March and in going through my loan documents, I don't see any mention of a clawback provision, though with hundreds of pieces of paper, I could easily be missing it.
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Post by anon_investor »

BrandonBogle wrote: Thu Jul 02, 2020 1:00 pm
anon_investor wrote: Thu Jul 02, 2020 12:29 pm Thanks! Sounds like you are in a similar siutation as me. I am ready to jump on another refi when I can find my target rate at $0 cost, so far the lowest I have found is around $1k. Sure glad I have no clawback on my recent Ally refi, and netted $2k so I can jump on another refi right away.
Yes, I am rate-locked for 2.25% at around no closing costs, once all the title numbers are adjusted (I know what my local agent charges). Still trying to improve things, but that was my trigger point.
Nice. $0 cost (or close to it ) is what I am waiting for.
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Re: Refinance Mega Thread

Post by nickpete123 »

JimmyD wrote: Thu Jul 02, 2020 1:04 pm Can anyone direct me to the specifics regarding LenderFi's clawback provision? I refinanced back in March and in going through my loan documents, I don't see any mention of a clawback provision, though with hundreds of pieces of paper, I could easily be missing it.
I noticed in my disclosures it doesn't say there's a prepayment penalty but rather I signed a document that said I did not intend to refinance within 180 days and if I did I could be liable to pay back LenderFi their cost or lender credit.

Not sure how enforceable it is but I reached out to them and they said I could lock a new rate 150 days from when my loan was funded.
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Post by BrandonBogle »

anon_investor wrote: Thu Jul 02, 2020 1:13 pm
BrandonBogle wrote: Thu Jul 02, 2020 1:00 pm
anon_investor wrote: Thu Jul 02, 2020 12:29 pm Thanks! Sounds like you are in a similar siutation as me. I am ready to jump on another refi when I can find my target rate at $0 cost, so far the lowest I have found is around $1k. Sure glad I have no clawback on my recent Ally refi, and netted $2k so I can jump on another refi right away.
Yes, I am rate-locked for 2.25% at around no closing costs, once all the title numbers are adjusted (I know what my local agent charges). Still trying to improve things, but that was my trigger point.
Nice. $0 cost (or close to it ) is what I am waiting for.
Yeah. Before prepaid interest from closing to the 1st of the next month, $13 back to me (assuming my Excel spreadsheet math is correct).
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Re: Refinance Mega Thread

Post by JimmyD »

nickpete123 wrote: Thu Jul 02, 2020 1:20 pm
JimmyD wrote: Thu Jul 02, 2020 1:04 pm Can anyone direct me to the specifics regarding LenderFi's clawback provision? I refinanced back in March and in going through my loan documents, I don't see any mention of a clawback provision, though with hundreds of pieces of paper, I could easily be missing it.
I noticed in my disclosures it doesn't say there's a prepayment penalty but rather I signed a document that said I did not intend to refinance within 180 days and if I did I could be liable to pay back LenderFi their cost or lender credit.

Not sure how enforceable it is but I reached out to them and they said I could lock a new rate 150 days from when my loan was funded.
Interesting. I went through my disclosures a second time and see no mention of anything like that.
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Re: Refinance Mega Thread

Post by NJ_Bogler »

BrandonBogle wrote: Wed Jul 01, 2020 10:28 pm
NJ_Bogler wrote: Wed Jul 01, 2020 9:56 pm Mortgage Professor shows I can get a 2.25% 15 year through Keystone. No points (looks like I get back around $833; $6700 approx in various costs).
Wait until you get a Loan Estimate to really trust the numbers. But until then, why do you mean "get back around $833", but "$6700 in various costs"? As in, you have a $7,500 credit to offset the $6,700 in costs and there is still $833 left over?
Thanks for reply; I had the numbers wrong. It's $10,880 in closing costs with a lender credit of $833. But it's really $2700 in closing costs with a $833 credit as most of the closing costs are pre-payments and escrow that I get back.

Still looks to be worth it on paper. 20 year is at 2.625% which I am also considering; still quite lower than my 3.25% and takes two years off my mortgage ultimately.
Familyman2012
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Re: Refinance Mega Thread

Post by Familyman2012 »

Familyman2012 wrote: Thu Jul 02, 2020 11:20 am
BrandonBogle wrote: Thu Jul 02, 2020 9:39 am
Familyman2012 wrote: Thu Jul 02, 2020 9:36 am But what to understand the details before I sign off on everything.
More people need this mentality!
My next question then would be...

If payoff is $1500 more than the loan amount. should I just pay off right away with cash or should I just roll it in the new loan? Not sure what the best option is especially if we decide to refi again if rates drop.

Not sure how the number work out for my advantage.
Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
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Re: Refinance Mega Thread

Post by dave8228 »

Familyman2012 wrote: Thu Jul 02, 2020 2:20 pm
Familyman2012 wrote: Thu Jul 02, 2020 11:20 am
BrandonBogle wrote: Thu Jul 02, 2020 9:39 am
Familyman2012 wrote: Thu Jul 02, 2020 9:36 am But what to understand the details before I sign off on everything.
More people need this mentality!
My next question then would be...

If payoff is $1500 more than the loan amount. should I just pay off right away with cash or should I just roll it in the new loan? Not sure what the best option is especially if we decide to refi again if rates drop.

Not sure how the number work out for my advantage.
Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
If it was me, I would roll it in unless I wanted to avoid paying interest on the $1,500. That way I'd get to keep the $1,500 in my pocket :happy
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Post by JasonMc »

nic3456 wrote: Thu Jul 02, 2020 7:26 am Finally heard back from better - apparently my appraisal came in 25k lower than what I had estimated which moved me into a different LTV bracket. I was ~66% and now I’m at 70.2%. I’m checking to see if I could just pay a couple hundred dollars and move back below 70%. The appraiser kind of hosed me - They appraised for the same price as it did three years ago but since then the market is as strong or stronger and we’ve added a barn.
You should be able to do that. You just decrease the loan amount by increasing your cash-to-close amount. My appraisal came back lower that estimated as well. I went from under 75% LTV to over 75% LTV. It's not a sliding scale, but a hard cut-off. With a 440k appraisal, the difference between a loan amount of 330,000 and 330,001 was almost $800 in lender credits.
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Re: Refinance Mega Thread

Post by 3of10 »

Familyman2012 wrote: Thu Jul 02, 2020 2:20 pm Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
Even though some might be against adding more to a mortgage balance, I would just roll the $1500 into the loan. I don't know what your loan is for, but 2.875% for a 20 yr loan at say $300K, would only increase the loan by around $8/mth.

Also, since you plan on doing another refi in the near future (if rates dramatically fall), you would want to keep your out-of-pocket costs as low as possible.
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Post by Familyman2012 »

3of10 wrote: Thu Jul 02, 2020 3:20 pm
Familyman2012 wrote: Thu Jul 02, 2020 2:20 pm Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
Even though some might be against adding more to a mortgage balance, I would just roll the $1500 into the loan. I don't know what your loan is for, but 2.875% for a 20 yr loan at say $300K, would only increase the loan by around $8/mth.

Also, since you plan on doing another refi in the near future (if rates dramatically fall), you would want to keep your out-of-pocket costs as low as possible.
I’m thinking the same. Roll in $1500. Because if I refi again. I’m most likely going to have another payoff amount that I’m going to have to payoff. If its my last refi then I rather pay the next refi payoff difference in cash instead of this current refi. Hope that makes sense.

Again, I’m not sure how the numbers work out to my advantage. But I’m leaning so far with your advice. My brain is tired.
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Post by MortgageOnBlack »

In March 2020, I refinanced from 27.5 remaining years (3.75%) to a 20-year (3.375%) loan.
In May 2020, I refinanced again from the 20-year (3.375%) loan to a 15-year (2.625%).

I just made my first mortgage payment on the 15-year loan yesterday (7/1)

Am I crazy to look around again? :mrgreen: Since I'm already at 2.625%, it might not be worth it with fees. Please keep in mind, I don't mind and oddly enjoy the process. :greedy

Maybe it's time I find some more hobbies besides refinancing.
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Post by 3of10 »

Familyman2012 wrote: Thu Jul 02, 2020 3:28 pm
3of10 wrote: Thu Jul 02, 2020 3:20 pm
Familyman2012 wrote: Thu Jul 02, 2020 2:20 pm Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
Even though some might be against adding more to a mortgage balance, I would just roll the $1500 into the loan. I don't know what your loan is for, but 2.875% for a 20 yr loan at say $300K, would only increase the loan by around $8/mth.

Also, since you plan on doing another refi in the near future (if rates dramatically fall), you would want to keep your out-of-pocket costs as low as possible.
I’m thinking the same. Roll in $1500. Because if I refi again. I’m most likely going to have another payoff amount that I’m going to have to payoff. If its my last refi then I rather pay the next refi payoff difference in cash instead of this current refi. Hope that makes sense.

Again, I’m not sure how the numbers work out to my advantage. But I’m leaning so far with your advice. My brain is tired.
Maybe it would make financial sense to pay off your last refi difference in cash, or maybe not. It would depend on how long you plan to stay in the house. If we go with the $1500 ($8/mth increase) for this refi, it would take around 15 years before it would be financially better to pay it off in cash. Also, you could be using that $1500 for a good purpose (e.g. 401K, Roth IRA,...).
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Re: Refinance Mega Thread

Post by mighty72 »

I had asked a question earlier, so thought will update. All are 30 yr fixed & no points. LTV is 65%, loan ~720K. State: CA
Loan Depot: 2.99% w/ 1300 closing costs
LenderFi: 2.875%, no cost
Better: said could not match LenderFi, 2.875% required ~ 10K in points

Locked rate with LenderFi. Currently, I have 7/1 ARM with same rate.
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

mighty72 wrote: Thu Jul 02, 2020 4:00 pm 30 yr fixed & no points. LTV is 65%, loan ~720K. State: CA
LenderFi: 2.875%, no cost

Locked rate with LenderFi. Currently, I have 7/1 ARM with same rate.
That’s a great offer mighty!
hotelcalifornia
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Re: Refinance Mega Thread

Post by hotelcalifornia »

I’m about to close with Better, 15 year 2.625% no fee, 210k in Texas. I thought when I locked about 30 days ago we were at the bottom but looks like rates just continue to fall. After the Amex credit I’ll come out ahead, thank you to all for the info in this thread.

It may sound obvious but remember that you will likely need to go into title company office to close. Some offer mobile notary but it had been a few years since my last refinance and I had been thinking I would be doing this all remotely.
bluebolt
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Re: Refinance Mega Thread

Post by bluebolt »

JimmyD wrote: Thu Jul 02, 2020 1:04 pm Can anyone direct me to the specifics regarding LenderFi's clawback provision? I refinanced back in March and in going through my loan documents, I don't see any mention of a clawback provision, though with hundreds of pieces of paper, I could easily be missing it.
Here was the language. I don't recall specifically what document it was in.
"I/We are aware that if we refinance or sell our home in the next 6 months (180 days), that we may be held responsible for paying back any credit given to us by LenderFi, Inc. during the course of this transaction."
happyyoda
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Re: Refinance Mega Thread

Post by happyyoda »

mighty72 wrote: Thu Jul 02, 2020 4:00 pm I had asked a question earlier, so thought will update. All are 30 yr fixed & no points. LTV is 65%, loan ~720K. State: CA
Loan Depot: 2.99% w/ 1300 closing costs
LenderFi: 2.875%, no cost
Better: said could not match LenderFi, 2.875% required ~ 10K in points

Locked rate with LenderFi. Currently, I have 7/1 ARM with same rate.
How did you get the 2.875%, no cost with LenderFi? I am in CA and when I checked their website, it was quoting me 3.25% with $738 points or 3.25% with $750 credit.
SVT
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Re: Refinance Mega Thread

Post by SVT »

I've been using mtgprofessor.com to check out rates for a while now. I've noticed that as rates have gone lower, the lowest rate available on the rate tables shown on that site provided by the lenders has still not gone lower than 2.25% for 15 yr or 30 yr mortgages. The "rate closest to zero fees" for 15 year fixed has now come all the way down to 2.25% and there are no options to buy down the rate (to make it lower than 2.25%) by purchasing points, at least not according to what's displayed and provided by mtgprofessor.com. Is it not (currently) possible to pay points to get a mortgage rate lower than 2.25%? If yes, why not? Or is there some reason mtgprofessor isn't showing these options?
drizzleray
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Re: Refinance Mega Thread

Post by drizzleray »

hotelcalifornia wrote: Thu Jul 02, 2020 4:45 pm I’m about to close with Better, 15 year 2.625% no fee, 210k in Texas. I thought when I locked about 30 days ago we were at the bottom but looks like rates just continue to fall. After the Amex credit I’ll come out ahead, thank you to all for the info in this thread.

It may sound obvious but remember that you will likely need to go into title company office to close. Some offer mobile notary but it had been a few years since my last refinance and I had been thinking I would be doing this all remotely.
We have the mobile notary coming out tomorrow to sign the same product you have.
mighty72
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Re: Refinance Mega Thread

Post by mighty72 »

happyyoda wrote: Thu Jul 02, 2020 5:04 pm
mighty72 wrote: Thu Jul 02, 2020 4:00 pm I had asked a question earlier, so thought will update. All are 30 yr fixed & no points. LTV is 65%, loan ~720K. State: CA
Loan Depot: 2.99% w/ 1300 closing costs
LenderFi: 2.875%, no cost
Better: said could not match LenderFi, 2.875% required ~ 10K in points

Locked rate with LenderFi. Currently, I have 7/1 ARM with same rate.
How did you get the 2.875%, no cost with LenderFi? I am in CA and when I checked their website, it was quoting me 3.25% with $738 points or 3.25% with $750 credit.
I first got the offer from loan depot. It was just a verbal offer. The rates on website for lenderFi are much higher. I started with 3.125% with points. After they pulled credit, the rate came down pretty quickly
Lacrocious
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Re: Refinance Mega Thread

Post by Lacrocious »

FYI - for Wisconsin residents, check out UWCU.ORG. We were just approved for and locked a 15yr @ 2.75% with $149 closing costs, 0 points through their Rapid Refi programs. They have a 12yr@2.75% and 30yr @ 3.25%, both with the $149 closing costs. They have other rates with closing costs, but the Rapid Refi's worked for us.

To be a member there are some requirements. To summarize, they are mainly about attending a WI college or a WI Residence that has attended a list of national colleges.

- L
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BrandonBogle
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Re: Refinance Mega Thread

Post by BrandonBogle »

SVT wrote: Thu Jul 02, 2020 5:21 pm The "rate closest to zero fees" for 15 year fixed has now come all the way down to 2.25% and there are no options to buy down the rate (to make it lower than 2.25%) by purchasing points, at least not according to what's displayed and provided by mtgprofessor.com. Is it not (currently) possible to pay points to get a mortgage rate lower than 2.25%? If yes, why not? Or is there some reason mtgprofessor isn't showing these options?
I have, at a few different lenderS, options down to 1.875% on a 15-year. But not for points I would ever pay - but they are there.
armeliusc
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Re: Refinance Mega Thread

Post by armeliusc »

My apology for introducing yet another refinance-related thread here:

I am in the middle of a refinance and the lender (Cardinal Financial) came back with a new LE that increase the Transfer tax by ~$1400, recorded as "State Deed Tax / Stamps". It shows a "Circumstance Changes" in the disclosure summary as "Vesting Changes", "Vesting Changes Titleholder Added", "Vesting Changes Titleholder Removed". Earlier today, the loan coordinator called me and asked for our marriage certificate saying that "your wife is not vested on title". There are other smaller increase related to "deed recording".

Could anyone help me understand what this is?

In the current loan my wife is not a borrower but I thought she was always on the title. She for sure had to sign things last time we refi in 2017. This time around I wanted for her to be on the mortgage even though only my income is used for consideration (she has no regular income). Could this be part of the issue? I am certainly not very happy that my closing cost just increased by ~$1600.

This prompted me to get an LE from LenderFi and they gave me practically same term with no cost (offset by lender credits). Can I lock with them and have two rate-locked at two different lender, only to back out from one later?

Thanks for any suggestion and help.
Berean
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Re: Refinance Mega Thread

Post by Berean »

isubrama wrote: Wed Jul 01, 2020 3:54 pm
soxpatsbos wrote: Wed Jul 01, 2020 3:50 pm Feedback requested: Personal home in Bay Area; Value ~ 1.8M, currently on a 30 year fixed mortgage 3.625%, 700K balance. Should I refinance or do a rate modification? 5 years into current mortgage, although the bank only agreed to shave off .125% bringing the new rate to 3.50%
owning straight away gives 2.99 for 30 years and 2.5% for 15 years, with no closing cost.
Do you know whether Owning refis homes in Georgia?
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

anon_investor wrote: Thu Jul 02, 2020 10:33 am How soon after completing a refi have other people started another refi?

I completed a refi with Ally at the end of May. My credit reports now show that my old WF mortgage is paid off, but still do not reflect my refi mortgage (which Ally sold to Fannie Mae, but still services through The Money Source). I have no claw back, and I actually got paid (credits larger than costs/fees/taxes), so there is no breakeven to worry about.

I am now begnining to see even lower rate refi mortgages starting to get closer to "no cost" for me.

I am wondering whether the fact that my new refi mortgage is not yet on my credit report will cause any issues if I try to start a new refi app now?
I don’t think to is a big deal if not on credit report. It might be a big deal if it hasn’t been recorded if your county clerk is backed up due to both covid and all the refi activity.

Might be helpful to bring this up with new lender and settlement agent (maybe use same settlement agent as current loan). I would imagine a settlement agent would want to ensure the payoff wire they are sending out is for a mortgage that is actually secured with the property and the proof is finding a recorded mortgage note.
Last edited by seawolf21 on Thu Jul 02, 2020 8:45 pm, edited 2 times in total.
Berean
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Re: Refinance Mega Thread

Post by Berean »

Berean wrote: Thu Jul 02, 2020 7:54 pm
isubrama wrote: Wed Jul 01, 2020 3:54 pm
soxpatsbos wrote: Wed Jul 01, 2020 3:50 pm Feedback requested: Personal home in Bay Area; Value ~ 1.8M, currently on a 30 year fixed mortgage 3.625%, 700K balance. Should I refinance or do a rate modification? 5 years into current mortgage, although the bank only agreed to shave off .125% bringing the new rate to 3.50%
owning straight away gives 2.99 for 30 years and 2.5% for 15 years, with no closing cost.
Do you know whether Owning refis homes in Georgia?
Nevermind, Owning only does California.
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

Lacrocious wrote: Thu Jul 02, 2020 5:43 pm FYI - for Wisconsin residents, check out UWCU.ORG. We were just approved for and locked a 15yr @ 2.75% with $149 closing costs, 0 points through their Rapid Refi programs. They have a 12yr@2.75% and 30yr @ 3.25%, both with the $149 closing costs. They have other rates with closing costs, but the Rapid Refi's worked for us.

To be a member there are some requirements. To summarize, they are mainly about attending a WI college or a WI Residence that has attended a list of national colleges.

- L
Maybe thing are different in WI, but a 2.75 15 year seems pretty expensive under current conditions. People are reporting 2.75 to 2.875 30 year no cost and 15 year no cost should be 2.5 or below.
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

Familyman2012 wrote: Thu Jul 02, 2020 9:36 am
BrandonBogle wrote: Thu Jul 02, 2020 9:31 am
Familyman2012 wrote: Thu Jul 02, 2020 8:55 am I see. So my suppose closing date is 7/24. My current lender usually takes my mortgage payment on the 7th-9th of every month. Then a couple days later I get an updated mortgage statement. Do I give them the new loan balance on that statement? Or do I want 1 or 2 days before 7/24 to call my current lender what the new payoff is? Then relay that to my closing agent to update closing doc?
.

You can do legwork if you want, but the settlement agent is not supposed to accept the number you send them and instead validate for themselves. So if your number isn't already update when you get your "initial closing disclosures" and you set a closing date, ask for them to get a new payoff quote from your old lender. The statement is not what you want to use.

Technically, the payoff quote can be generated anytime the monthly payment, but there is no sense in getting it super early in case closing gets delayed. Hopefully not, but if your 7/24 closing moves to 8/10 for some reason, the numbers would need to be updated again.
Thank you. I’ll wait for the initial closing disclosures. I’m probably just jumping the gun. But what to understand the details before I sign off on everything.
If you make your “due on” July 1 payment, your payoff should be the principal on mid-July statement plus interest on that principal from July 1 to funding plus any processing/lien release recording fees current lender may charge.

Mortgage statement is useless to settlement agent as it only reflects outstanding principal not payoff (July interest plus fees). Settlement agent’s job is to obtain payoff from current lender; you do not tell settlement agent what the payoff should be. You can do some roughy calculations to make sure it looks correct. Current lender will refund any excess back to you directly.
seawolf21
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Re: Refinance Mega Thread

Post by seawolf21 »

Familyman2012 wrote: Thu Jul 02, 2020 2:20 pm
Familyman2012 wrote: Thu Jul 02, 2020 11:20 am
BrandonBogle wrote: Thu Jul 02, 2020 9:39 am
Familyman2012 wrote: Thu Jul 02, 2020 9:36 am But what to understand the details before I sign off on everything.
More people need this mentality!
My next question then would be...

If payoff is $1500 more than the loan amount. should I just pay off right away with cash or should I just roll it in the new loan? Not sure what the best option is especially if we decide to refi again if rates drop.

Not sure how the number work out for my advantage.
Does anyone know what the best move is? Should I pay the loan payoff amount of $1500 in cash or roll in? If rates drop I’ll refi again later this year. Or does it not even matter in this situation
Doesn’t even matter. You would have had to pay this amount at next payment on current mortgage if you didn’t do a refi. This is essentially funds you had already earmarked as mortgage payment.
dragoncar
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Re: Refinance Mega Thread

Post by dragoncar »

BrandonBogle wrote: Thu Jul 02, 2020 6:06 am
dragoncar wrote: Thu Jul 02, 2020 2:10 am
dragoncar wrote: Thu Jun 25, 2020 11:54 am
Thanks, they paid the loan yesterday, one week after “funding”.

I asked for an adjustment or accommodation for the extra interest. Will see what they say, but I consider this an unreasonable delay. Having a hard time recommending better/title365 given my experience so far
They agreed to refund settlement fee. Pretty much makes up for the lost interest but it's too bad they weren't proactive in resolving
Are you saying the extra week of interest at Chase was a higher dollar amount than the settlement fee?
No, it was about the same as the settlement fee. I just straight up asked to refund the fee rather than argue about the specific amount of overlapping interest.
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