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Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 11:03 am
by comehither2k18
My HELOC draw period is coming to an end in a few months. Balance is around $65k(paid of original mortgage with Heloc so no mortgage)
I think, because of current rates, it's a good time to just get back into a 15yr fixed mortgage. Looking to borrow a total of $70k plus whatever closing costs are.

Penfed said I'd probably be looking at 3.375 or 3.125 if I pay $437 for lower rate. As far as closing costs, they couldn't give an exact amount but guessed the high end to be $5500 and said it would probably be less. That just seems excessive and doesn't make it worth doing if they are that high. If that were the case the better option might be another HELOC that I can lock rate which will be higher but no closing costs.

Is there anyway I can get a more firm idea on closing costs before starting loan process? I plan on shopping this around online but it makes it tough if no one can give me a more accurate amount for closing costs.
Im here in Buffalo NY.

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 11:28 am
by tenkuky
Did you check with ThirdFederal?
I think they cover NY state and have fixed closing costs of $595, check online to see refi rates.

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 11:32 am
by comehither2k18
Ill check with them too. Thanks

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 12:38 pm
by CAsage
Just because the "draw" period is ending does not mean the loan terminates - do you still plan to pull more money out? If so, get another HELOC. If not, your original term was probably ~10 years repayment (I'm guessing here). I would never suggest going to a fixed term first mortgage for that small an amount because the costs, as you have seen, are enormous for smaller mortgages. Stick to a HELOC, $5500 on fees for a $70k loan is incredible!

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 1:09 pm
by dsmil
Are these really "costs" or just cash needed at closing? I'm about to refinance a $400k loan and will pay $1k in lender fees and $1,500 in title/appraisal fees, that's it. Any prepaids/escrow requirements aren't really costs so I wouldn't include those. You'll get a refund of what's leftover in your old escrow account so it should offset anything required at closing.

I use the mortgage professor site to find good rates: https://www.mtgprofessor.com/ext/partne ... rLoan.aspx

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 4:11 pm
by dm200
CAsage wrote: Fri Oct 18, 2019 12:38 pm Just because the "draw" period is ending does not mean the loan terminates - do you still plan to pull more money out? If so, get another HELOC. If not, your original term was probably ~10 years repayment (I'm guessing here). I would never suggest going to a fixed term first mortgage for that small an amount because the costs, as you have seen, are enormous for smaller mortgages. Stick to a HELOC, $5500 on fees for a $70k loan is incredible!
Right. Years ago, my wife and I had a $50 k HELOC from Navy Federal Credit Union- and the draw period was about to end. Then, just before the draw period ended - we received a notice that the credit union had reset the HELOC for a new draw period of the same length as the original.

Then, when that draw period ended - no extension or resetting - we had to enter into the repayment period.

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 4:36 pm
by Tamarind
Another recommendation for Third Federal, because they have low closing cost refis and they like small mortgages. Some other banks don't want to refi amounts under $100k, but TF sees them as an opportunity to offer a HELOC on top. :sharebeer I refinanced $90k with them at 3.09% last year (5/1 ARM, 10 year term). Very happy with the refi process and their service since.

Re: Closing costs on a refinance. Negotiable and how?

Posted: Fri Oct 18, 2019 5:47 pm
by dm200
Sometimes (DW and I did this) you can have the closing done by an entity that does not have an "attorney" do the closing. Navy Federal Credit Union offers this choice. It has been a mong, long time - but I know we saved money by doing this instead of a regular real estate attorney.