Why not go to a 15 year 1.875% ?mirror wrote: ↑Thu Jul 29, 2021 5:13 pm Sanity check since I may be doing some mental gymnastics to make this work in my head...
Does going from 15 yr 2.375% to 30 year 2.375% for a net cost of ~$1,700 ($3,700 closing cost -$2k amex credit) to free up cash flow make sense on a $130k mortgage? Payment would go from $880 to $515. No pts option for 30 yr at 2.75% ($540 pmt) so would come out ahead +$1,300 ($700 closing cost -$2k amex credit) . No plans to move for several years due to kids' school. I might just be getting caught up with the low rate of 2.375% for 30 years which is a $3k additional cost.
Refinance Mega Thread
Re: Refinance Mega Thread
Re: Refinance Mega Thread
True, the closing costs would be fairly close to the 30 yr @ 2.375%. Although freeing up $300/month would be pretty nice.tj wrote: ↑Thu Jul 29, 2021 5:16 pmWhy not go to a 15 year 1.875% ?mirror wrote: ↑Thu Jul 29, 2021 5:13 pm Sanity check since I may be doing some mental gymnastics to make this work in my head...
Does going from 15 yr 2.375% to 30 year 2.375% for a net cost of ~$1,700 ($3,700 closing cost -$2k amex credit) to free up cash flow make sense on a $130k mortgage? Payment would go from $880 to $515. No pts option for 30 yr at 2.75% ($540 pmt) so would come out ahead +$1,300 ($700 closing cost -$2k amex credit) . No plans to move for several years due to kids' school. I might just be getting caught up with the low rate of 2.375% for 30 years which is a $3k additional cost.
Re: Refinance Mega Thread
Well, 15 year 2% would be lowering your payment and less closing costs. You pay a lot more interest on a 30 year loan. If you're okay with that, nothing crazy about extending the term. Especially if the amoutn of interest allows you to itemize. (Doesn't for me)mirror wrote: ↑Thu Jul 29, 2021 5:19 pmTrue, the closing costs would be fairly close to the 30 yr @ 2.375%. Although freeing up $300/month would be pretty nice.tj wrote: ↑Thu Jul 29, 2021 5:16 pmWhy not go to a 15 year 1.875% ?mirror wrote: ↑Thu Jul 29, 2021 5:13 pm Sanity check since I may be doing some mental gymnastics to make this work in my head...
Does going from 15 yr 2.375% to 30 year 2.375% for a net cost of ~$1,700 ($3,700 closing cost -$2k amex credit) to free up cash flow make sense on a $130k mortgage? Payment would go from $880 to $515. No pts option for 30 yr at 2.75% ($540 pmt) so would come out ahead +$1,300 ($700 closing cost -$2k amex credit) . No plans to move for several years due to kids' school. I might just be getting caught up with the low rate of 2.375% for 30 years which is a $3k additional cost.
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Re: Refinance Mega Thread
Regarding the Amex/Better promotion...chrischris wrote: ↑Wed Jul 28, 2021 6:16 pm I refinanced last year to a 20 year with Lenderfi at 2.8% (no fees).
Property value: $710k
Amount owed: $246k
I checked the rates on Bankrate and saw Better was advertising 1.750% with $608 upfront cost on a 15 year. This seemed like a sweet deal. I clicked the link and started an application with Better, only to see their final options proposed to me much worse. They are now offering me 1.75% with $5733 in upfront cost (points).
I took a screenshot and responded to the email I received from Better. I showed the massive increase and discrepancy. The agent responded and said they are built on transparency and will honor advertised prices, she just asked I update the screen shot with more accurate numbers than my initial estimates, which I did. I updated the figures and am waiting to hear back.
To drop down 1% for minimal cost would be huge, I believe, unless anyone disagrees? The small increase in monthly payment to go from a 20 year to 15 year wouldn't be an issue. Am I missing something here?
Also, I don't currently have an Amex card. Can I sign up for an Amex card now and get the promotion? Or do I have to be an existing card holder? I didn't see this in the terms, and wouldn't mind someone commenting on personal experience.
All you need is to have a valid Amex Credit Card number BEFORE you close on the refinance.
When I applied, I did not have an Amex. I applied for the CC, and updated the CC information onto the refi application.
If you're are going ahead with this, let me know. Amex has a referral system.
Re: Refinance Mega Thread
In process of refinancing with Better.com and I had a quick question to the board about a request that Better is asking me to upload regarding Home Insurance. Better is asking me to upload "We need you to upload your Replacement Cost Estimator from your insurance policy."
Our current Home Insurance provider is Liberty Mutual. I've uploaded my Policy Declaration document and my Policy Packet. Both times Better has taken a few days and rejected the document request. According to Liberty Mutual website the Policy Packet has the following information: "It’s all of your current policy information, as well as all of the legal documentation that came with your original policy.
Is there anyone who has done a refi that has Liberty Mutual as Home Insurance provider? And could they provide some insight about what document to upload? I've talked to my Processing Expert twice and he doesn't provide much information about what I need provide to complete the task.
Our current Home Insurance provider is Liberty Mutual. I've uploaded my Policy Declaration document and my Policy Packet. Both times Better has taken a few days and rejected the document request. According to Liberty Mutual website the Policy Packet has the following information: "It’s all of your current policy information, as well as all of the legal documentation that came with your original policy.
Is there anyone who has done a refi that has Liberty Mutual as Home Insurance provider? And could they provide some insight about what document to upload? I've talked to my Processing Expert twice and he doesn't provide much information about what I need provide to complete the task.
Re: Refinance Mega Thread
pmmcmu wrote: ↑Fri Jul 30, 2021 6:06 am In process of refinancing with Better.com and I had a quick question to the board about a request that Better is asking me to upload regarding Home Insurance. Better is asking me to upload "We need you to upload your Replacement Cost Estimator from your insurance policy."
Our current Home Insurance provider is Liberty Mutual. I've uploaded my Policy Declaration document and my Policy Packet. Both times Better has taken a few days and rejected the document request. According to Liberty Mutual website the Policy Packet has the following information: "It’s all of your current policy information, as well as all of the legal documentation that came with your original policy.
Is there anyone who has done a refi that has Liberty Mutual as Home Insurance provider? And could they provide some insight about what document to upload? I've talked to my Processing Expert twice and he doesn't provide much information about what I need provide to complete the task.
My agent provided a replacement cost estimate/coverage number from my insurer and they accepted it.
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Re: Refinance Mega Thread
Hello! This is only my second time doing a re-fi and the last was over a decade ago, so I am feeling apprehensive. But we have 4.25% on a 30 year right now, so I know we need to do it!
Is there anything to the Better AMEX deal other than:
- Going to Bankrate to get a quote and taking a screen capture of the rate.
- Moving forward with a re-fi with Better and using the Bankrate screen capture to negotiate the rate down, and requesting the AMEX refund.
Questions:
I suppose I need to move forward getting quotes from other companies as well to compare and possibly use with Better to reduce the rate?
How does AMEX play in? I think we still have an active AMEX card. Do we charge something to it to get the refund?
Is there anything else I need to know or look out for?
Thank you!
Is there anything to the Better AMEX deal other than:
- Going to Bankrate to get a quote and taking a screen capture of the rate.
- Moving forward with a re-fi with Better and using the Bankrate screen capture to negotiate the rate down, and requesting the AMEX refund.
Questions:
I suppose I need to move forward getting quotes from other companies as well to compare and possibly use with Better to reduce the rate?
How does AMEX play in? I think we still have an active AMEX card. Do we charge something to it to get the refund?
Is there anything else I need to know or look out for?
Thank you!
Re: Refinance Mega Thread
You enter your Amex card number into the web portal anytime before closing. A few weeks after close you'll get a statement credit onto the Amex card you entered. You can purchase things with the Amex card to offset the credits, or Amex can cut you a check for a negative balance (you can request this to be done or it will happen automatically after a few months).NillaNumberNine wrote: ↑Fri Jul 30, 2021 8:41 am Hello! This is only my second time doing a re-fi and the last was over a decade ago, so I am feeling apprehensive. But we have 4.25% on a 30 year right now, so I know we need to do it!
Is there anything to the Better AMEX deal other than:
- Going to Bankrate to get a quote and taking a screen capture of the rate.
- Moving forward with a re-fi with Better and using the Bankrate screen capture to negotiate the rate down, and requesting the AMEX refund.
Questions:
I suppose I need to move forward getting quotes from other companies as well to compare and possibly use with Better to reduce the rate?
How does AMEX play in? I think we still have an active AMEX card. Do we charge something to it to get the refund?
Is there anything else I need to know or look out for?
Thank you!
Re: Refinance Mega Thread
Thanks. I talked to my insurance company this morning and got the required screenshot.chazas wrote: ↑Fri Jul 30, 2021 6:39 ampmmcmu wrote: ↑Fri Jul 30, 2021 6:06 am In process of refinancing with Better.com and I had a quick question to the board about a request that Better is asking me to upload regarding Home Insurance. Better is asking me to upload "We need you to upload your Replacement Cost Estimator from your insurance policy."
Our current Home Insurance provider is Liberty Mutual. I've uploaded my Policy Declaration document and my Policy Packet. Both times Better has taken a few days and rejected the document request. According to Liberty Mutual website the Policy Packet has the following information: "It’s all of your current policy information, as well as all of the legal documentation that came with your original policy.
Is there anyone who has done a refi that has Liberty Mutual as Home Insurance provider? And could they provide some insight about what document to upload? I've talked to my Processing Expert twice and he doesn't provide much information about what I need provide to complete the task.
My agent provided a replacement cost estimate/coverage number from my insurer and they accepted it.
Re: Refinance Mega Thread
I shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 amI've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.Goal33 wrote: ↑Sat Jul 24, 2021 10:14 amThat should be easy to accomplish for a 30 year or 15. Assuming you’re in the high balance conforming range, and not jumbo for your area.rage_phish wrote: ↑Sat Jul 24, 2021 9:14 am Wow that’s great
Anyone refinancing loans around $622k
We’re trying to get under 3% without paying anything
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Re: Refinance Mega Thread
I locked a couple of days ago for a 30-year no-cost loan at 2.625. Interactive Mortgage. Just below the jumbo line for VHCOL area.frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 amI've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Re: Refinance Mega Thread
Why not? If you find something better down the line, you can just refi again. I'd take the 28 year one, unless you just don't want the hassle of going through a refinance.frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 amI've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
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Re: Refinance Mega Thread
Did you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 amI've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Re: Refinance Mega Thread
Locked this week with Better for refi of ~$200k loan, 50% LTV.
Going from our 2.875% loan with 29 years left to:
2.5% 30 year with $220 lender credit
Total cost out of pocket after Amex promo is ~$300, not counting escrow and prepaids.
I found that having Amrock handle title services will save me $386 so I requested that and am waiting to hear back.
Thanks BH for the tips on both the Amex promo and Bankrate!
Going from our 2.875% loan with 29 years left to:
2.5% 30 year with $220 lender credit
Total cost out of pocket after Amex promo is ~$300, not counting escrow and prepaids.
I found that having Amrock handle title services will save me $386 so I requested that and am waiting to hear back.
Thanks BH for the tips on both the Amex promo and Bankrate!
Last edited by mbasherp on Fri Jul 30, 2021 1:21 pm, edited 1 time in total.
Re: Refinance Mega Thread
Not sure IM operates in my locality. I think I checked before but I will double check. Thanks.Firemenot wrote: ↑Fri Jul 30, 2021 1:04 pmI locked a couple of days ago for a 30-year no-cost loan at 2.625. Interactive Mortgage. Just below the jumbo line for VHCOL area.frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 am
I've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Re: Refinance Mega Thread
LD is my current lender so hassle would be minimal. Only thing is they must do appraisal , which they will pay back through credit later.tj wrote: ↑Fri Jul 30, 2021 1:05 pmWhy not? If you find something better down the line, you can just refi again. I'd take the 28 year one, unless you just don't want the hassle of going through a refinance.frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 am
I've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Re: Refinance Mega Thread
Yep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pmDid you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pmIs this a jumbo? If not, does LenderFi operate where you are?frugalNY wrote: ↑Sat Jul 24, 2021 11:55 am
I've had zero luck so far My current rate is 30 yr fixed at 2.99 and currently shorpping. Here is my experience.
I've 653K loan for a 1.2m house with both over 800 credit score but neither Better or Loan Depot were able to get me measly 2.75 at no cost. Not sure what to do from here. Which other lender to reach out
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
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Re: Refinance Mega Thread
You may be able to do better than what you see on Bankrate.frugalNY wrote: ↑Fri Jul 30, 2021 1:23 pmYep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pmDid you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).frugalNY wrote: ↑Sat Jul 24, 2021 10:14 pmIt’s high conforming. Lenderfi doesn’t operate in NY. Any other suggestions? Thanks.anon_investor wrote: ↑Sat Jul 24, 2021 12:16 pm
Is this a jumbo? If not, does LenderFi operate where you are?
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though. And remember the goal of matching is get you the biggest discount, not the final interest rate on your loan. So if you see somehting that's 20 years, 2.25% that gives you the biggest differential from the corresponding offer on Better's system, ask Better to match that. Then you can go and select from the 30 years rate column to see if any of the new rates / credit or points are to your liking.
and also don't forget the $2k (conforming) or $6k (jumbo) AmEx deal.
Last edited by bestisfree on Fri Jul 30, 2021 1:53 pm, edited 2 times in total.
Re: Refinance Mega Thread
He has a Jumbo. Doesn't that make the AmEx deal $6k instead of $2k?bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pmYou may be able to do better than what you see on Bankrate.frugalNY wrote: ↑Fri Jul 30, 2021 1:23 pmYep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pmDid you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though.
and also don't forget the $2k AmEx deal.
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Re: Refinance Mega Thread
I like how tj is always right. I stand corrected.tj wrote: ↑Fri Jul 30, 2021 1:46 pmHe has a Jumbo. Doesn't that make the AmEx deal $6k instead of $2k?bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pmYou may be able to do better than what you see on Bankrate.frugalNY wrote: ↑Fri Jul 30, 2021 1:23 pmYep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pmDid you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pm
I shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though.
and also don't forget the $2k AmEx deal.
Re: Refinance Mega Thread
I've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.bestisfree wrote: ↑Fri Jul 30, 2021 1:51 pmI like how tj is always right. I stand corrected.tj wrote: ↑Fri Jul 30, 2021 1:46 pmHe has a Jumbo. Doesn't that make the AmEx deal $6k instead of $2k?bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pmYou may be able to do better than what you see on Bankrate.frugalNY wrote: ↑Fri Jul 30, 2021 1:23 pmYep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pm
Did you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though.
and also don't forget the $2k AmEx deal.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Re: Refinance Mega Thread
You have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pmI've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.bestisfree wrote: ↑Fri Jul 30, 2021 1:51 pmI like how tj is always right. I stand corrected.tj wrote: ↑Fri Jul 30, 2021 1:46 pmHe has a Jumbo. Doesn't that make the AmEx deal $6k instead of $2k?bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pmYou may be able to do better than what you see on Bankrate.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though.
and also don't forget the $2k AmEx deal.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Re: Refinance Mega Thread
Nope, it's not. Bankrate rates for Better is actually worse than these ratestj wrote: ↑Fri Jul 30, 2021 2:34 pmYou have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pmI've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.bestisfree wrote: ↑Fri Jul 30, 2021 1:51 pmI like how tj is always right. I stand corrected.tj wrote: ↑Fri Jul 30, 2021 1:46 pmHe has a Jumbo. Doesn't that make the AmEx deal $6k instead of $2k?bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pm
You may be able to do better than what you see on Bankrate.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though.
and also don't forget the $2k AmEx deal.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Re: Refinance Mega Thread
Thank you for writing that all out! Very much appreciated, I'm going to run through that exercise now and see what they will do.bestisfree wrote: ↑Fri Jul 30, 2021 1:39 pmYou may be able to do better than what you see on Bankrate.frugalNY wrote: ↑Fri Jul 30, 2021 1:23 pmYep, check Bankrate pretty much every day. Not good rates. Most hoovering around 2.75 with a huge closing cost making it 2.99 or over. Not worth it at all.bestisfree wrote: ↑Fri Jul 30, 2021 1:07 pmDid you check advertised rate on bankrate.com for your situation? (I assume you did, but just in case)frugalNY wrote: ↑Fri Jul 30, 2021 12:58 pmI shopped in few places including Better, LD (my current lender), HSBC and couple of others. None of them could do better than my current rate of 2.99 with no cost (currently at 29 yrs as I reset the clock last August).
Suddenly today, my LD LO reached out with the below offer: 2.875% NO COST for 28 yr loan vs. my 29 yr loan. The payment will be $31 more per month but it will shave off 15K in interest and 1 yr during the term of the loan. I can also reset the clock to 30 yr with 2.875% and reduce my monthly from 2798 to 2709.
Not a great deal but something and I can't seem to be finding anything even close. Should I go for it? Need advice ASAP.
Thanks.
Do you have an open application with Better? If so, look into your rate sheet.
Let's say on Better.com you see 30 years 2.75% with $5000 in points and 30 years 2.875% with $2200 in points .
On bankrate you see 2.75% at $2000 in points, and 2.875% at $1500 in points. You then ask Better to match .
The pair that has the biggest difference is 2.75% 5000-2000 = 3000 > 2.875% $2200-1500 = 700. So you ask Better to match Bankrate's advertised rate for 30 years, 2.75% at $2000 in points.
Once that's applied, it applies across your rate table on Better's system. So you are probably going to see a much bigger deduction in points, into the no cost or credit territory. for example, 2.875%, $2200 - $3000 (match) = -$800 (credit) and this will be better than the advertised rates on bankrate.com.
You have to make an initial application at Better to see the system rate card though. And remember the goal of matching is get you the biggest discount, not the final interest rate on your loan. So if you see somehting that's 20 years, 2.25% that gives you the biggest differential from the corresponding offer on Better's system, ask Better to match that. Then you can go and select from the 30 years rate column to see if any of the new rates / credit or points are to your liking.
and also don't forget the $2k (conforming) or $6k (jumbo) AmEx deal.
Thanks again.
Re: Refinance Mega Thread
For me, Bankrate is much better on 15 year rates. Did you look at those and compare to what is showing in Better?frugalNY wrote: ↑Fri Jul 30, 2021 2:38 pmNope, it's not. Bankrate rates for Better is actually worse than these ratestj wrote: ↑Fri Jul 30, 2021 2:34 pmYou have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pmI've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Re: Refinance Mega Thread
Just checked 15 yr both in Bankrate vs. Better portal. Same. Bankrate is worse. Besides, I can't afford 15 yr.tj wrote: ↑Fri Jul 30, 2021 2:48 pmFor me, Bankrate is much better on 15 year rates. Did you look at those and compare to what is showing in Better?frugalNY wrote: ↑Fri Jul 30, 2021 2:38 pmNope, it's not. Bankrate rates for Better is actually worse than these ratestj wrote: ↑Fri Jul 30, 2021 2:34 pmYou have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pmI've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Committed with LD just now. Thanks.
Re: Refinance Mega Thread
It's not about what can afford. When you update one rate, it updates the whole rate table.frugalNY wrote: ↑Fri Jul 30, 2021 3:09 pmJust checked 15 yr both in Bankrate vs. Better portal. Same. Bankrate is worse. Besides, I can't afford 15 yr.tj wrote: ↑Fri Jul 30, 2021 2:48 pmFor me, Bankrate is much better on 15 year rates. Did you look at those and compare to what is showing in Better?frugalNY wrote: ↑Fri Jul 30, 2021 2:38 pmNope, it's not. Bankrate rates for Better is actually worse than these ratestj wrote: ↑Fri Jul 30, 2021 2:34 pmYou have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pm
I've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Committed with LD just now. Thanks.
Sounds like Better is not universally rock bottom. Good to know.
Re: Refinance Mega Thread
Have you asked Better to match LD so you can take advantage of the AMEX credit?frugalNY wrote: ↑Fri Jul 30, 2021 3:09 pmJust checked 15 yr both in Bankrate vs. Better portal. Same. Bankrate is worse. Besides, I can't afford 15 yr.tj wrote: ↑Fri Jul 30, 2021 2:48 pmFor me, Bankrate is much better on 15 year rates. Did you look at those and compare to what is showing in Better?frugalNY wrote: ↑Fri Jul 30, 2021 2:38 pmNope, it's not. Bankrate rates for Better is actually worse than these ratestj wrote: ↑Fri Jul 30, 2021 2:34 pmYou have to play the bankrate game. The bankrate rates aren't better than what it shows there?frugalNY wrote: ↑Fri Jul 30, 2021 2:33 pm
I've a pending application with Better and this is what I see (can't upload the screen print). Also, this is a high conforming for Nassau NY, not a jumbo loan. Please advise. Thanks.
Rate/APR Points Principal+Int
2.5/2.682 $13,496 $2580
2.625/2.736 $7,535 $2623
2.75/2.807 $2,912 $2666
2.875/2.898 -$731 $2709
3.0/3.024 -$3023 $2753
Committed with LD just now. Thanks.
Re: Refinance Mega Thread
I locked with Better on July 20 with a 30 year at 2.625% with a net gain after closing costs of $593 plus the $2,000 Amex credit. I appreciate all the help on here to get to this point. Projected closing is Aug. 9 and I talked to LE today and confirmed we're on target.
One issue that I'm a little concerned about is escrow. We bought our house new right at a year ago. So apparently we only paid about $200 in property taxes for 2020. Better insists on using that figure to estimate my initial escrow payment at closing. I have received my 2021 property assessment from my county showing my projected taxes due in a few months to be closer to $3,000. I have made my LE aware of this a few times, but she keeps going back to what the title search shows for 2020.
I'm counting on the initial escrow including the 2021 property taxes. Anyone else run into this issue? If they push forward with the low-ball amount in escrow for my property taxes, am I at risk of coming out of pocket for taxes or does the mortgage servicer I wind up pay the taxes and change my monthly payment to reflect that?
One issue that I'm a little concerned about is escrow. We bought our house new right at a year ago. So apparently we only paid about $200 in property taxes for 2020. Better insists on using that figure to estimate my initial escrow payment at closing. I have received my 2021 property assessment from my county showing my projected taxes due in a few months to be closer to $3,000. I have made my LE aware of this a few times, but she keeps going back to what the title search shows for 2020.
I'm counting on the initial escrow including the 2021 property taxes. Anyone else run into this issue? If they push forward with the low-ball amount in escrow for my property taxes, am I at risk of coming out of pocket for taxes or does the mortgage servicer I wind up pay the taxes and change my monthly payment to reflect that?
Re: Refinance Mega Thread
What happens when you turn escrow off? That might be the easiest solution.rico6545 wrote: ↑Fri Jul 30, 2021 5:06 pm I locked with Better on July 20 with a 30 year at 2.625% with a net gain after closing costs of $593 plus the $2,000 Amex credit. I appreciate all the help on here to get to this point. Projected closing is Aug. 9 and I talked to LE today and confirmed we're on target.
One issue that I'm a little concerned about is escrow. We bought our house new right at a year ago. So apparently we only paid about $200 in property taxes for 2020. Better insists on using that figure to estimate my initial escrow payment at closing. I have received my 2021 property assessment from my county showing my projected taxes due in a few months to be closer to $3,000. I have made my LE aware of this a few times, but she keeps going back to what the title search shows for 2020.
I'm counting on the initial escrow including the 2021 property taxes. Anyone else run into this issue? If they push forward with the low-ball amount in escrow for my property taxes, am I at risk of coming out of pocket for taxes or does the mortgage servicer I wind up pay the taxes and change my monthly payment to reflect that?
Re: Refinance Mega Thread
The escrow will pay even if there's a shortage because they don't want to lose their interest in the property.rico6545 wrote: ↑Fri Jul 30, 2021 5:06 pm I locked with Better on July 20 with a 30 year at 2.625% with a net gain after closing costs of $593 plus the $2,000 Amex credit. I appreciate all the help on here to get to this point. Projected closing is Aug. 9 and I talked to LE today and confirmed we're on target.
One issue that I'm a little concerned about is escrow. We bought our house new right at a year ago. So apparently we only paid about $200 in property taxes for 2020. Better insists on using that figure to estimate my initial escrow payment at closing. I have received my 2021 property assessment from my county showing my projected taxes due in a few months to be closer to $3,000. I have made my LE aware of this a few times, but she keeps going back to what the title search shows for 2020.
I'm counting on the initial escrow including the 2021 property taxes. Anyone else run into this issue? If they push forward with the low-ball amount in escrow for my property taxes, am I at risk of coming out of pocket for taxes or does the mortgage servicer I wind up pay the taxes and change my monthly payment to reflect that?
If there's a shortage they can ask you to make a one time lump sum payment into the escrow to catch up or split it up over the next year of escrow payment installments.
Re: Refinance Mega Thread
One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
Re: Refinance Mega Thread
Escrow absolutely does not count. You're paying that stuff regardless of financing.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
Re: Refinance Mega Thread
So, #2 is considered "no-cost" refinance, then?tj wrote: ↑Fri Jul 30, 2021 6:26 pmEscrow absolutely does not count. You're paying that stuff regardless of financing.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
Re: Refinance Mega Thread
Option 2. ABCE are costs you don't pay if you're not refinancing. Sections FG are costs you pay regardless of refi or not, it's just a matter of timing, they shouldn't factor too heavily into your decision other than an inconvenience or opportunity cost of temporarily holding two escrows before you get refunded the old one.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
Re: Refinance Mega Thread
Well, yeah. You wouldn't be incurring any of those fees if you weren't refinancing.newbie20 wrote: ↑Fri Jul 30, 2021 6:33 pmSo, #2 is considered "no-cost" refinance, then?tj wrote: ↑Fri Jul 30, 2021 6:26 pmEscrow absolutely does not count. You're paying that stuff regardless of financing.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
With the Amex $2k offer, you could argue that A+B+C+E - Lender Credits = $2000 would be a no cost refi.
-
- Posts: 137
- Joined: Thu Jan 07, 2016 12:30 pm
Re: Refinance Mega Thread
I have a LO that bulked at Better's offer saying that lender's credit can't be put against escrow and the lender's credit on my loan estimate is too big. So for example, the following loan estimate would have problem at closing, for example.
Anyone who has closed had a problem with their lender's credit being much larger than their A+B+C+E ???
Code: Select all
A = 0
B = $ 50 (credit report)
C = $1000 (title services, etc)
D = $1050 (A+B+C)
E = $ 100 (taxes + gov't fees)
F = $4000 (Prepaids)
G = $4500 (escrows)
H = $ 0 (other, AmEx credit)
I = $8600 (E+F+G+H)
J = $6650 (D+I - $3000 lender's credit)
Re: Refinance Mega Thread
I had that with LD last year and it wasn’t a problem. The credit covered the closing costs, fully funded my escrow, and is still got a check in the mail from them on top of that.bestisfree wrote: ↑Fri Jul 30, 2021 11:24 pm I have a LO that bulked at Better's offer saying that lender's credit can't be put against escrow and the lender's credit on my loan estimate is too big. So for example, the following loan estimate would have problem at closing, for example.
Anyone who has closed had a problem with their lender's credit being much larger than their A+B+C+E ???Code: Select all
A = 0 B = $ 50 (credit report) C = $1000 (title services, etc) D = $1050 (A+B+C) E = $ 100 (taxes + gov't fees) F = $4000 (Prepaids) G = $4500 (escrows) H = $ 0 (other, AmEx credit) I = $8600 (E+F+G+H) J = $6650 (D+I - $3000 lender's credit)
Re: Refinance Mega Thread
Remember to account for fees to close the existing loan. Those can be a few hundred $.tj wrote: ↑Fri Jul 30, 2021 6:58 pmWell, yeah. You wouldn't be incurring any of those fees if you weren't refinancing.newbie20 wrote: ↑Fri Jul 30, 2021 6:33 pmSo, #2 is considered "no-cost" refinance, then?tj wrote: ↑Fri Jul 30, 2021 6:26 pmEscrow absolutely does not count. You're paying that stuff regardless of financing.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
With the Amex $2k offer, you could argue that A+B+C+E - Lender Credits = $2000 would be a no cost refi.
Also, I think it’s prudent to NOT roll the entire payoff quote amount from your current loan into the new loan, because then you’re paying that remaining interest and recording fees in your new loan balance!!!
Re: Refinance Mega Thread
I don't see why it matters to roll those into the loan or not.truenyer wrote: ↑Sat Jul 31, 2021 9:03 amRemember to account for fees to close the existing loan. Those can be a few hundred $.tj wrote: ↑Fri Jul 30, 2021 6:58 pmWell, yeah. You wouldn't be incurring any of those fees if you weren't refinancing.newbie20 wrote: ↑Fri Jul 30, 2021 6:33 pmSo, #2 is considered "no-cost" refinance, then?tj wrote: ↑Fri Jul 30, 2021 6:26 pmEscrow absolutely does not count. You're paying that stuff regardless of financing.newbie20 wrote: ↑Fri Jul 30, 2021 6:21 pm One really elementary question - what is a true "no-cost" refinance?
Is it:
1. A (Origination) + B (Fixed Services) + C (Flexible Services) - Lender Credits = 0
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
3. A + B + C +E + F (Escrow) - Lender Credits = 0
4. Something else
Or does it depend on how each individual looks at it, meaning my "no-cost" might be different than yours?
2. A + B + C + E (Taxes & Fees) - Lender Credits = 0
With the Amex $2k offer, you could argue that A+B+C+E - Lender Credits = $2000 would be a no cost refi.
Also, I think it’s prudent to NOT roll the entire payoff quote amount from your current loan into the new loan, because then you’re paying that remaining interest and recording fees in your new loan balance!!!
Re: Refinance Mega Thread
Similar thing happened to me once where my escrow was $1800 short when a tax payment was due. Bank paid it and then sent me the option of paying $1800 lump sum or adding $150/month to my payment for the next year (no fees, etc for either)rico6545 wrote: ↑Fri Jul 30, 2021 5:06 pm I locked with Better on July 20 with a 30 year at 2.625% with a net gain after closing costs of $593 plus the $2,000 Amex credit. I appreciate all the help on here to get to this point. Projected closing is Aug. 9 and I talked to LE today and confirmed we're on target.
One issue that I'm a little concerned about is escrow. We bought our house new right at a year ago. So apparently we only paid about $200 in property taxes for 2020. Better insists on using that figure to estimate my initial escrow payment at closing. I have received my 2021 property assessment from my county showing my projected taxes due in a few months to be closer to $3,000. I have made my LE aware of this a few times, but she keeps going back to what the title search shows for 2020.
I'm counting on the initial escrow including the 2021 property taxes. Anyone else run into this issue? If they push forward with the low-ball amount in escrow for my property taxes, am I at risk of coming out of pocket for taxes or does the mortgage servicer I wind up pay the taxes and change my monthly payment to reflect that?
Re: Refinance Mega Thread
This is not a problem. The LO is wrong. Perhaps their firm doesn’t offer lender credit exceeding D+E, but that would be their own policy, not a general rule.bestisfree wrote: ↑Fri Jul 30, 2021 11:24 pm I have a LO that bulked at Better's offer saying that lender's credit can't be put against escrow and the lender's credit on my loan estimate is too big. So for example, the following loan estimate would have problem at closing, for example.
Anyone who has closed had a problem with their lender's credit being much larger than their A+B+C+E ???Code: Select all
A = 0 B = $ 50 (credit report) C = $1000 (title services, etc) D = $1050 (A+B+C) E = $ 100 (taxes + gov't fees) F = $4000 (Prepaids) G = $4500 (escrows) H = $ 0 (other, AmEx credit) I = $8600 (E+F+G+H) J = $6650 (D+I - $3000 lender's credit)
I’ve had LOs tell me this before. They are either mistaken (because they are thinking about their own firm’s policy) or lying (to try to lure me away from my other offer). But I have done 3 refis with lender credit exceeding D+E, including one with Better.
- drive2snow
- Posts: 31
- Joined: Thu Feb 27, 2020 7:05 am
Re: Refinance Mega Thread
What type of turnaround time have others seen between being handed off to a "closing expert" with Better.com and receiving your closing disclosure? We were handed off on 7/19 and haven't received it yet. I reached out to the closing contact a week later and he's replied twice, but hasn't had any tangible information available about when we might see our closing disclosure and be able to schedule closing. The late payment deadline for our mortgage payment is 8/16, so we have a some time to get this moving, but I'm not exactly comfortable sitting around with that bill past due.
Re: Refinance Mega Thread
OMG! We are in exact identical situation. I told my closing expert that if no scheduled date by August 2nd, we are making the payment, get a new payoff and importantly reduce loan amountdrive2snow wrote: ↑Sat Jul 31, 2021 10:06 am What type of turnaround time have others seen between being handed off to a "closing expert" with Better.com and receiving your closing disclosure? We were handed off on 7/19 and haven't received it yet. I reached out to the closing contact a week later and he's replied twice, but hasn't had any tangible information available about when we might see our closing disclosure and be able to schedule closing. The late payment deadline for our mortgage payment is 8/16, so we have a some time to get this moving, but I'm not exactly comfortable sitting around with that bill past due.
He said the financed amount remains same but cash to close would reduce.
I said no-go. Financed amount reduces, and cash to close remains same.
- drive2snow
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Re: Refinance Mega Thread
Sorry to hear we have company in this situation. I haven't applied much pressure yet, but I think I'll start to do that by Monday. I expected things to move a little faster at this point and don't want to be in a situation where we won't fund before the late payment deadline (how worried should I be about that if we have closing scheduled by then?). Our circumstances are pretty routine and moved quickly with LenderFi after our rate lock last summer.kd2008 wrote: ↑Sat Jul 31, 2021 10:11 am OMG! We are in exact identical situation. I told my closing expert that if no scheduled date by August 2nd, we are making the payment, get a new payoff and importantly reduce loan amount
He said the financed amount remains same but cash to close would reduce.
I said no-go. Financed amount reduces, and cash to close remains same.
Update: I spoke too soon! We received our initial closing disclosure this evening.
Last edited by drive2snow on Sat Jul 31, 2021 11:37 pm, edited 1 time in total.
Re: Refinance Mega Thread
Just electronically pay the old mortgage by the 16th if your closing date is close to the 16th. If you pay your mortgage by mail, stop doing that because the USPS is now unreliable. If you overpay, you will get a refund check in about 30 days from the old lender.kd2008 wrote: ↑Sat Jul 31, 2021 10:11 amOMG! We are in exact identical situation. I told my closing expert that if no scheduled date by August 2nd, we are making the payment, get a new payoff and importantly reduce loan amountdrive2snow wrote: ↑Sat Jul 31, 2021 10:06 am What type of turnaround time have others seen between being handed off to a "closing expert" with Better.com and receiving your closing disclosure? We were handed off on 7/19 and haven't received it yet. I reached out to the closing contact a week later and he's replied twice, but hasn't had any tangible information available about when we might see our closing disclosure and be able to schedule closing. The late payment deadline for our mortgage payment is 8/16, so we have a some time to get this moving, but I'm not exactly comfortable sitting around with that bill past due.
He said the financed amount remains same but cash to close would reduce.
I said no-go. Financed amount reduces, and cash to close remains same.
The amount of interest you will save is next to nothing compared to a bunch of extra work getting another payoff (which can take a week too) and time wasted to redo documents for a closer that's already not doing a good job.
Re: Refinance Mega Thread
I would just maintain payments as normal until funding is complete. If there is an overpayment, you will get refunded.
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Re: Refinance Mega Thread
Hello, thanks for all the tips in this thread. I have initiated an application with Better and don't see any information on their site about the AmEx credit offer. Any tips on how I go about getting this? Should I do a call with the loan officer and just ask for it out of the blue?
Re: Refinance Mega Thread
Just tell your assigned loan contact about it. I did it via email. They added the offer to my account, I got a few emails and a banner showed up in my Better web portal. A task shows up in the web portal to enter the card number.firstchair wrote: ↑Sat Jul 31, 2021 12:14 pm Hello, thanks for all the tips in this thread. I have initiated an application with Better and don't see any information on their site about the AmEx credit offer. Any tips on how I go about getting this? Should I do a call with the loan officer and just ask for it out of the blue?
Here's the offer page for reference: https://www.americanexpress.com/en-us/l ... -mortgage/