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Mortgage Rates (1 Viewer)

JerseyEagles said:
It's incredible the amount of financial verification they require now. I'm currently 1.5 months into my refi application process and I'm still going at it w/ the Wells Fargo underwriters. I initially produced over 50 pages of financial documents to verify my family's financial footing (which was a lot I thought) and I just got word that they still need more info. At this point, I fully expect to catch a WF underwriter in the bushes outside my office window w/ a camera attempting to verify my employment. :shrug: Unreal how a few years changes everything, ain't no more lying loans to be sure.
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No kidding! Per my purchase agreement I need to finalize my financing in the next two weeks (closing the 27th). I was a little perturbed by my mortgage guy telling me it's not abnormal for a lender to lock you into a rate and accept your loan...only to pull it back just before you close and ask for more comps or financial records. As someone going through all this for the first time it's very dissheartening to know that something like this could happen, affect my closing date, and have it completely out of your control.For what it's worth, he said that Chase above all others is getting a reputation for things like this

 
springroll said:
BR33ZE said:
lolLink or run the numbers because while your example seems simple it really isn't that simple.If you've paid off 10+ years of a loan, you've already paid off a good portion of the interest. Your effective rate on the remaining 20 years should be much lower than refinancing unless you started at a huge rate to begin with.
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loans arent front loaded with interest. You arent paying interest in year 1 for year 3. You are paying more interest in year 1 because the loan balance is more. I had to recently explain this scenario to somebody regarding their car loan. She had a chance to refinance to a lower rate and it only cost like a 20 dollar processing fee and no early repayment fee. She was reluctant to do it and was saying how she had already paid off most of the interest anyway.
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Good information. I didn't know that.The point that shouldn't get buried though is that most people don't refinance for the exact number of years on their existing loan. So, as you hinted at above, people can end up refinancing and paying more total interest on their new loan because they've extended the number of years. When you factor in closing costs etc, for some people it could end up costing more over the long haul to refinance.The example I ran quickly was if someone is in year 11 of 30 year mortgage at 7% and they decide they want to refinance for 30 years at 5%. Yes, they save money monthly, but unless they are diligent enough to put the money they are saving back into principle, they actually end up paying ~$20K more in interest over the life of the loan. On top of that, on the new loan you are in year 1 of 30 again and paying significantly less principle.So what seems like an awesome deal, may not be. But to your point, if they did refinance for just the 19 years they have left at a lower rate, of course they would be paying less interest.
 
BR33ZE said:
springroll said:
BR33ZE said:
lol

Link or run the numbers because while your example seems simple it really isn't that simple.

If you've paid off 10+ years of a loan, you've already paid off a good portion of the interest. Your effective rate on the remaining 20 years should be much lower than refinancing unless you started at a huge rate to begin with.
Click to expand...
loans arent front loaded with interest. You arent paying interest in year 1 for year 3. You are paying more interest in year 1 because the loan balance is more. I had to recently explain this scenario to somebody regarding their car loan. She had a chance to refinance to a lower rate and it only cost like a 20 dollar processing fee and no early repayment fee. She was reluctant to do it and was saying how she had already paid off most of the interest anyway.
Click to expand...
Good information. I didn't know that.The point that shouldn't get buried though is that most people don't refinance for the exact number of years on their existing loan. So, as you hinted at above, people can end up refinancing and paying more total interest on their new loan because they've extended the number of years. When you factor in closing costs etc, for some people it could end up costing more over the long haul to refinance.

The example I ran quickly was if someone is in year 11 of 30 year mortgage at 7% and they decide they want to refinance for 30 years at 5%. Yes, they save money monthly, but unless they are diligent enough to put the money they are saving back into principle, they actually end up paying ~$20K more in interest over the life of the loan. On top of that, on the new loan you are in year 1 of 30 again and paying significantly less principle.

So what seems like an awesome deal, may not be. But to your point, if they did refinance for just the 19 years they have left at a lower rate, of course they would be paying less interest.
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Yes, because their minimum principal went down and they decided to pay the new minumum. Here's some better math for you:

Let's say they owe 100K on this mortgage, they have a 7% interest rate. They have 19 years remaining like you've suggested. So their monthly payment is 794.19. 588.33 of that is interest. 210.86 of that is principal. You will pay 81000 in interest over the life of this loan.

They opt to refinance to a 30 year loan at 5%. Their new payment is 536.82, less than they were paying in interest before. Of that, 416.67 is interest and 120.15 is principal. .

1) While you are "saving" almost 260 a month, your real savings here is only $171 a month. Your only true savings are in interest. The extra $90 is in lowered minimum principal payments.

2) If you continue paying just the minumum payments and pocket the entire $260 a month, you are correct and you would pay 93255 over the life of the loan in interest. An extra 12K.

3) If you instead only pocketed the $171 a month and continued putting that $90 into your principal your payments lower $171 and you will pay it off in 2031 and only pay 65000 in interst over the life of the loan. You could put $200 of your $260 savings in and you'd pay the loan off in 2026 rather than 2029 and only pay 47K in interest over the life of it. In both cases you are saving money month and are paying less in interest over the life of the loan.

4) This doesn't just seem like a great deal, there is no way to logically argue otherwise.

The key to understanding a loan isn't using their minimum payments and spreading them out over the life of the loan. It is understanding the amortization schedule of the loan and then tailoring your new payments to what you want to accomplish. Here's a good calculator from bankrate.com: http://www.bankrate.com/calculators/mortga...calculator.aspx

 
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Also another thing to consider is that you may be better paying the minimums and paying more in interst over the life of the loan depending on what you are doing with the money. If you take that $260 and put it all into high interest credit card debt, that's a better financial move than paying off your principal. It'll save you more in credit card interest than cost you in mortgage interest. Plus mortgage interest is tax deductible whereas credit card interest is not, so it's a far better form of interest.

If you take that entire $260 and put it into something that returns better than about 6%, you're better off as well (depending on how high Obama jacks the capital gains rates). Again, yes you payed more in mortgage interest in doing so, but you more than offset it with your capital gains and come out ahead.

So depending on what you do with the $260 if you pocket the entire thing, it may not be a bad thing that you ended up paying more in mortgage interest. If you're going to blow it on crack and hookers and have nothing to show for it, then yes, you are financially better off remaining in a financially crappier loan or financing for a shorter term to force you to make the extra principal payments. If you are this financially inept you could always finance that 100K at 5% over 15 years and kill all of your flexibility, your payments will still go down by like $3, and you cut 4 years off your mortgage. And it would still be stupid not to do vs staying in your current mortgage.

 
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DrJ said:
BR33ZE said:
springroll said:
BR33ZE said:
lol

Link or run the numbers because while your example seems simple it really isn't that simple.

If you've paid off 10+ years of a loan, you've already paid off a good portion of the interest. Your effective rate on the remaining 20 years should be much lower than refinancing unless you started at a huge rate to begin with.
Click to expand...
loans arent front loaded with interest. You arent paying interest in year 1 for year 3. You are paying more interest in year 1 because the loan balance is more. I had to recently explain this scenario to somebody regarding their car loan. She had a chance to refinance to a lower rate and it only cost like a 20 dollar processing fee and no early repayment fee. She was reluctant to do it and was saying how she had already paid off most of the interest anyway.
Click to expand...
Good information. I didn't know that.The point that shouldn't get buried though is that most people don't refinance for the exact number of years on their existing loan. So, as you hinted at above, people can end up refinancing and paying more total interest on their new loan because they've extended the number of years. When you factor in closing costs etc, for some people it could end up costing more over the long haul to refinance.

The example I ran quickly was if someone is in year 11 of 30 year mortgage at 7% and they decide they want to refinance for 30 years at 5%. Yes, they save money monthly, but unless they are diligent enough to put the money they are saving back into principle, they actually end up paying ~$20K more in interest over the life of the loan. On top of that, on the new loan you are in year 1 of 30 again and paying significantly less principle.

So what seems like an awesome deal, may not be. But to your point, if they did refinance for just the 19 years they have left at a lower rate, of course they would be paying less interest.
Click to expand...
Yes, because their minimum principal went down and they decided to pay the new minumum. Here's some better math for you:

Let's say they owe 100K on this mortgage, they have a 7% interest rate. They have 19 years remaining like you've suggested. So their monthly payment is 794.19. 588.33 of that is interest. 210.86 of that is principal. You will pay 81000 in interest over the life of this loan.

They opt to refinance to a 30 year loan at 5%. Their new payment is 536.82, less than they were paying in interest before. Of that, 416.67 is interest and 120.15 is principal. .

1) While you are "saving" almost 260 a month, your real savings here is only $171 a month. Your only true savings are in interest. The extra $90 is in lowered minimum principal payments.

2) If you continue paying just the minumum payments and pocket the entire $260 a month, you are correct and you would pay 93255 over the life of the loan in interest. An extra 12K.

3) If you instead only pocketed the $171 a month and continued putting that $90 into your principal your payments lower $171 and you will pay it off in 2031 and only pay 65000 in interst over the life of the loan. You could put $200 of your $260 savings in and you'd pay the loan off in 2026 rather than 2029 and only pay 47K in interest over the life of it. In both cases you are saving money month and are paying less in interest over the life of the loan.

4) This doesn't just seem like a great deal, there is no way to logically argue otherwise.

The key to understanding a loan isn't using their minimum payments and spreading them out over the life of the loan. It is understanding the amortization schedule of the loan and then tailoring your new payments to what you want to accomplish. Here's a good calculator from bankrate.com: http://www.bankrate.com/calculators/mortga...calculator.aspx
Click to expand...
So you admit it is a little more complex than what you mentioned earlier?
 
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BR33ZE said:
DrJ said:
BR33ZE said:
springroll said:
BR33ZE said:
lol

Link or run the numbers because while your example seems simple it really isn't that simple.

If you've paid off 10+ years of a loan, you've already paid off a good portion of the interest. Your effective rate on the remaining 20 years should be much lower than refinancing unless you started at a huge rate to begin with.
Click to expand...
loans arent front loaded with interest. You arent paying interest in year 1 for year 3. You are paying more interest in year 1 because the loan balance is more. I had to recently explain this scenario to somebody regarding their car loan. She had a chance to refinance to a lower rate and it only cost like a 20 dollar processing fee and no early repayment fee. She was reluctant to do it and was saying how she had already paid off most of the interest anyway.
Click to expand...
Good information. I didn't know that.The point that shouldn't get buried though is that most people don't refinance for the exact number of years on their existing loan. So, as you hinted at above, people can end up refinancing and paying more total interest on their new loan because they've extended the number of years. When you factor in closing costs etc, for some people it could end up costing more over the long haul to refinance.

The example I ran quickly was if someone is in year 11 of 30 year mortgage at 7% and they decide they want to refinance for 30 years at 5%. Yes, they save money monthly, but unless they are diligent enough to put the money they are saving back into principle, they actually end up paying ~$20K more in interest over the life of the loan. On top of that, on the new loan you are in year 1 of 30 again and paying significantly less principle.

So what seems like an awesome deal, may not be. But to your point, if they did refinance for just the 19 years they have left at a lower rate, of course they would be paying less interest.
Click to expand...
Yes, because their minimum principal went down and they decided to pay the new minumum. Here's some better math for you:

Let's say they owe 100K on this mortgage, they have a 7% interest rate. They have 19 years remaining like you've suggested. So their monthly payment is 794.19. 588.33 of that is interest. 210.86 of that is principal. You will pay 81000 in interest over the life of this loan.

They opt to refinance to a 30 year loan at 5%. Their new payment is 536.82, less than they were paying in interest before. Of that, 416.67 is interest and 120.15 is principal. .

1) While you are "saving" almost 260 a month, your real savings here is only $171 a month. Your only true savings are in interest. The extra $90 is in lowered minimum principal payments.

2) If you continue paying just the minumum payments and pocket the entire $260 a month, you are correct and you would pay 93255 over the life of the loan in interest. An extra 12K.

3) If you instead only pocketed the $171 a month and continued putting that $90 into your principal your payments lower $171 and you will pay it off in 2031 and only pay 65000 in interst over the life of the loan. You could put $200 of your $260 savings in and you'd pay the loan off in 2026 rather than 2029 and only pay 47K in interest over the life of it. In both cases you are saving money month and are paying less in interest over the life of the loan.

4) This doesn't just seem like a great deal, there is no way to logically argue otherwise.

The key to understanding a loan isn't using their minimum payments and spreading them out over the life of the loan. It is understanding the amortization schedule of the loan and then tailoring your new payments to what you want to accomplish. Here's a good calculator from bankrate.com: http://www.bankrate.com/calculators/mortga...calculator.aspx
Click to expand...
So you admit it is a little more complex than what you mentioned earlier?
Click to expand...
You got me. In order to get figures #1 and #2 you need to have some idea about the difference between your minimum payment amount and the amortization of your loan. I'm assuming the target audience has some clue about how loans work.
 
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BR33ZE said:
Nigel said:
BR33ZE said:
Morton Muffley said:
Nigel said:
Locked yesterday, 30 years at 4.75 with no points. Between the lower rate and bumping the 14 years I had left out to 30, my payment is less than half what it was. At first I hated the idea of adding 16 years but the more I thought about the flexibilty it gave us and the ability to build up the emergency fund I'm pretty happy with it. We won't be sweating it if my wife loses her job, which wasn't the case before.
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nigel, where did you lock? 4.75 with no pts. is very good imofwiw, i'm trying to do the same...i've got 14 years left and am thinking about getting a 30 yr loan (no much incentive to refi at 20/15/10 yrs) and will keep the same payment but add the flexibility just in case.well done.
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I think most finance professionals discourage people from refinancing homes that have fewer than 20 years left on a 30 year loan.You've already paid most of your interest and are paying a lot of principle now. :thumbup:
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My previous loan was a 20 yr.
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Ahhh... this is important information to have. Your old rate would be important as well.You are right, if you are in year 6 of of a 20 year mortgage, that makes some sense.If you are in year 16 of a 30 year mortgage, I don't think it makes sense. I'll run a little math example and post it.
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previously had 240K at 5.75, and another 35K at 6.25 - both with 14 yrs. remaining on a 20.
 
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
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I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
 
Being overcharged for CEMA processing.

For those who don't know, in NY there is a Consolidation, Extension, and Modification (CEM), also known as an Assignment of Mortgage, process where instead of paying taxes on entire mortgage you can pay taxes on just the "new" money. There is usually a small fee to file the paperwork and some lawyer costs. Since I am refinancing with an outside mortgage company (Wells Fargo) my current company (Chase) is basically trying to extort more money from me by charging me a $1100 fee. This is a ludicrous fee for this. My mortgage broker said he never heard of a fee so high and that I should call them and complain. He said the usual fee to process this is usually $300. The fee is payable at closing but I'm not gonna just sit here and pay this without fighting.

I have already called 3 different people at Chase (CSRs & 2 legal people). The 2 legal people have not returned my calls. My broker said I should file a complaint with the Banking Dept and even the NY Attorney General. Any other way I can fight this extortion. I have already threatened them with the Banking Dept and the fact that I will remove all my accounts with Chase (also have checking acct, credit cards, and HELOC loan with them).

 
djcolts said:
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
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I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
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You bet it is... You might want to find out since it's been over 2 weeks when your rate lock expirestoo.There is now reason why these loan officers (order takers) should not be returning calls. If I were you I'd leave my next message to the manager letting them know if you do not receive a call back you will seek other options. It's not like you can't find an equal to or better rate out there now. I manage to return my clients calls that day even if it's after working hours. Makes me think these loan officers are inexperienced and unable to handle the volume we have been seeing.Rates are still around 4.75% 0pts 30 yr fixed (non-FHA). My 2 cents...
 
towney said:
djcolts said:
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
Click to expand...
I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
Click to expand...
You bet it is... You might want to find out since it's been over 2 weeks when your rate lock expirestoo.There is now reason why these loan officers (order takers) should not be returning calls. If I were you I'd leave my next message to the manager letting them know if you do not receive a call back you will seek other options. It's not like you can't find an equal to or better rate out there now. I manage to return my clients calls that day even if it's after working hours. Makes me think these loan officers are inexperienced and unable to handle the volume we have been seeing.Rates are still around 4.75% 0pts 30 yr fixed (non-FHA). My 2 cents...
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Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
 
djcolts said:
Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
Click to expand...
I actually had this problem too. I left two VMs with the processor and one with her assistant over the course of two weeks (at a bank I subsequently dropped due to some ridiculous last minute conditions they tried to throw in). My calls were never returned. So, rather than dial the lady's direct number, I just dialed the general number and got a phone jockey. I told her that I had a closing day set, it was approaching, and numerous calls to my processor had gone unanswered. I gave names and dates of the calls. My call was returned that day by someone from the bank, though not my actual processor. So you may want to try that. VMs are easy to ignore. PO'd customers live on the phone are not.Oh, and p.s., forgot to add, my bank is allowing me to do my own escrow, which was a huge factor in my deciding on the change of company.
 
Loke said:
djcolts said:
Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
Click to expand...
I actually had this problem too. I left two VMs with the processor and one with her assistant over the course of two weeks (at a bank I subsequently dropped due to some ridiculous last minute conditions they tried to throw in). My calls were never returned. So, rather than dial the lady's direct number, I just dialed the general number and got a phone jockey. I told her that I had a closing day set, it was approaching, and numerous calls to my processor had gone unanswered. I gave names and dates of the calls. My call was returned that day by someone from the bank, though not my actual processor. So you may want to try that. VMs are easy to ignore. PO'd customers live on the phone are not.Oh, and p.s., forgot to add, my bank is allowing me to do my own escrow, which was a huge factor in my deciding on the change of company.
Click to expand...
Escrow is one of my main issues that I wanted to discuss - Indiana's property tax is screwed up (bill was supposed to be due in May, and it probably won't be due until July or August - and no one know what the bill will be) and there's no way that 4 months worth of escrow up front is nearly enough. I'd love to do my own escrow, but I doubt that will happen.
 
djcolts said:
Loke said:
djcolts said:
Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
Click to expand...
I actually had this problem too. I left two VMs with the processor and one with her assistant over the course of two weeks (at a bank I subsequently dropped due to some ridiculous last minute conditions they tried to throw in). My calls were never returned. So, rather than dial the lady's direct number, I just dialed the general number and got a phone jockey. I told her that I had a closing day set, it was approaching, and numerous calls to my processor had gone unanswered. I gave names and dates of the calls. My call was returned that day by someone from the bank, though not my actual processor. So you may want to try that. VMs are easy to ignore. PO'd customers live on the phone are not.Oh, and p.s., forgot to add, my bank is allowing me to do my own escrow, which was a huge factor in my deciding on the change of company.
Click to expand...
Escrow is one of my main issues that I wanted to discuss - Indiana's property tax is screwed up (bill was supposed to be due in May, and it probably won't be due until July or August - and no one know what the bill will be) and there's no way that 4 months worth of escrow up front is nearly enough. I'd love to do my own escrow, but I doubt that will happen.
Click to expand...
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
 
Dragons said:
djcolts said:
Loke said:
djcolts said:
Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
Click to expand...
I actually had this problem too. I left two VMs with the processor and one with her assistant over the course of two weeks (at a bank I subsequently dropped due to some ridiculous last minute conditions they tried to throw in). My calls were never returned. So, rather than dial the lady's direct number, I just dialed the general number and got a phone jockey. I told her that I had a closing day set, it was approaching, and numerous calls to my processor had gone unanswered. I gave names and dates of the calls. My call was returned that day by someone from the bank, though not my actual processor. So you may want to try that. VMs are easy to ignore. PO'd customers live on the phone are not.Oh, and p.s., forgot to add, my bank is allowing me to do my own escrow, which was a huge factor in my deciding on the change of company.
Click to expand...
Escrow is one of my main issues that I wanted to discuss - Indiana's property tax is screwed up (bill was supposed to be due in May, and it probably won't be due until July or August - and no one know what the bill will be) and there's no way that 4 months worth of escrow up front is nearly enough. I'd love to do my own escrow, but I doubt that will happen.
Click to expand...
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
Click to expand...
Here's what I'm worried about (I've been through this before):If the escrow funds are underfunded, they will take extra money to not only make up for the shortfall, but by federal law, the take an extra 16% or so on top of this. I'll pay extra escrow for at least a year and probably longer. They get free use of my extra money for at least a year. Considering that I'm getting 4% on my rewards checking account - I don't want this at all. I want to get it right ahead of time.

 
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djcolts said:
Dragons said:
djcolts said:
Loke said:
djcolts said:
Thanks. I am limited to some extent because I need to go through the Home Affordable Refinance program in order to refinance, but the advice is welcome.
Click to expand...
I actually had this problem too. I left two VMs with the processor and one with her assistant over the course of two weeks (at a bank I subsequently dropped due to some ridiculous last minute conditions they tried to throw in). My calls were never returned. So, rather than dial the lady's direct number, I just dialed the general number and got a phone jockey. I told her that I had a closing day set, it was approaching, and numerous calls to my processor had gone unanswered. I gave names and dates of the calls. My call was returned that day by someone from the bank, though not my actual processor. So you may want to try that. VMs are easy to ignore. PO'd customers live on the phone are not.Oh, and p.s., forgot to add, my bank is allowing me to do my own escrow, which was a huge factor in my deciding on the change of company.
Click to expand...
Escrow is one of my main issues that I wanted to discuss - Indiana's property tax is screwed up (bill was supposed to be due in May, and it probably won't be due until July or August - and no one know what the bill will be) and there's no way that 4 months worth of escrow up front is nearly enough. I'd love to do my own escrow, but I doubt that will happen.
Click to expand...
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
Click to expand...
Here's what I'm worried about (I've been through this before):If the escrow funds are underfunded, they will take extra money to not only make up for the shortfall, but by federal law, the take an extra 16% or so on top of this. I'll pay extra escrow for at least a year and probably longer. This is free money to the mortgage company. Considering that I'm getting 4% on my rewards checking account - I don't want this at all. I want to get it right ahead of time.
Click to expand...
Is the extra 16% on the shortfall, or on the total escrow payment? And does it get put into your escrow account or is it a fee? I have not experienced this, does it only kick in if you go negative in your escrow account? I have fallen below the 3 month minimum balance every year so far, but have never gone negative.ETA - if it's applied to your escrow, it's cheap money to the mortgage company, but it's not free. Don't you earn interest on your escrow account?

 
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Dragons said:
Is the extra 16% on the shortfall, or on the total escrow payment? And does it get put into your escrow account or is it a fee? I have not experienced this, does it only kick in if you go negative in your escrow account? I have fallen below the 3 month minimum balance every year so far, but have never gone negative.ETA - if it's applied to your escrow, it's cheap money to the mortgage company, but it's not free. Don't you earn interest on your escrow account?
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At my current mortgage company - no interest on my escrow. At my possible future mortgage company - I don't know.
 
djcolts said:
Dragons said:
Is the extra 16% on the shortfall, or on the total escrow payment? And does it get put into your escrow account or is it a fee? I have not experienced this, does it only kick in if you go negative in your escrow account? I have fallen below the 3 month minimum balance every year so far, but have never gone negative.ETA - if it's applied to your escrow, it's cheap money to the mortgage company, but it's not free. Don't you earn interest on your escrow account?
Click to expand...
At my current mortgage company - no interest on my escrow. At my possible future mortgage company - I don't know.
Click to expand...
Odd, I was under the belief that it was federally mandated. If you're refinancing with Wells Fargo, you should earn interest. I do.
 
Dragons said:
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
Click to expand...
Free money? Seriously??? You must have a different definition of "free" than me.Why would I want some bank holding my money? Though current times are tough, normally even the most unknowledgable of investor can earn 6% to 8% via mutual funds, likely more. So I'd rather pay $1240 a month and invest the extra $400 than just send that $400 to a mortgage company in the form of a $1640 payment. Also, where do you get this "free money" thing? If the bill comes in high, you are either paying it with a check, or your mortgage is going up. Nothing personal, but if I wanted my mortgage payments jumping, I wouldn't have taken a fixed rate loan! Either way, I seriously don't see how anyone could ever define this arrangement as "free money." You are paying that full tax bill one way or the other. To be perfectly blunt, I think anyone that pays escrow when they have the option not to is a wee bit daft. Although I guess if you are completely undisciplined with money, and know you or your SO would blow the money, it is probably wise to not count on yourself to make your tax payment each year.p.s. Does anyone NOT know what their property tax is each year??? Other than a new home owner, who's rate will normally adjust after the first year since taxes were likely determined on the undeveloped lot, anyone owning a home should know exactly where their tax bill will be.
 
Loke said:
Dragons said:
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
Click to expand...
Free money? Seriously??? You must have a different definition of "free" than me.Why would I want some bank holding my money? Though current times are tough, normally even the most unknowledgable of investor can earn 6% to 8% via mutual funds, likely more. So I'd rather pay $1240 a month and invest the extra $400 than just send that $400 to a mortgage company in the form of a $1640 payment. Also, where do you get this "free money" thing? If the bill comes in high, you are either paying it with a check, or your mortgage is going up. Nothing personal, but if I wanted my mortgage payments jumping, I wouldn't have taken a fixed rate loan! Either way, I seriously don't see how anyone could ever define this arrangement as "free money." You are paying that full tax bill one way or the other. To be perfectly blunt, I think anyone that pays escrow when they have the option not to is a wee bit daft. Although I guess if you are completely undisciplined with money, and know you or your SO would blow the money, it is probably wise to not count on yourself to make your tax payment each year.

p.s. Does anyone NOT know what their property tax is each year??? Other than a new home owner, who's rate will normally adjust after the first year since taxes were likely determined on the undeveloped lot, anyone owning a home should know exactly where their tax bill will be.
Click to expand...
No one in the State of Indiana knows what their property tax will be this year. It is a mess that won't be cleared up for a least 2 more months.
 
djcolts said:
No one in the State of Indiana knows what their property tax will be this year. It is a mess that won't be cleared up for a least 2 more months.
Click to expand...
Understood DJ. But that's a limited and temporary situation. I'm speaking to a normal situation as it applies to most everyone else.
 
Loke said:
Dragons said:
Why wouldn't you want the bank to handle escrow in this situation? In fact, in most situations? If there isn't enough in the escrow account to pay the tax bill, the bank will pay the tax bill anyway. Your mortgage payment will proceed as normal until the time they do their annual review. At that point, they'll determine there's a shortage and give you the option to make up the difference in one payment, or to spread it out over the course of the next year. This is free money. If you did your own escrow, you'd need to pay the tax bill when it comes due, no matter if the amount you had saved was enough to cover it or not.
Click to expand...
Free money? Seriously??? You must have a different definition of "free" than me.Why would I want some bank holding my money? Though current times are tough, normally even the most unknowledgable of investor can earn 6% to 8% via mutual funds, likely more. So I'd rather pay $1240 a month and invest the extra $400 than just send that $400 to a mortgage company in the form of a $1640 payment. Also, where do you get this "free money" thing? If the bill comes in high, you are either paying it with a check, or your mortgage is going up. Nothing personal, but if I wanted my mortgage payments jumping, I wouldn't have taken a fixed rate loan! Either way, I seriously don't see how anyone could ever define this arrangement as "free money." You are paying that full tax bill one way or the other. To be perfectly blunt, I think anyone that pays escrow when they have the option not to is a wee bit daft. Although I guess if you are completely undisciplined with money, and know you or your SO would blow the money, it is probably wise to not count on yourself to make your tax payment each year.

p.s. Does anyone NOT know what their property tax is each year??? Other than a new home owner, who's rate will normally adjust after the first year since taxes were likely determined on the undeveloped lot, anyone owning a home should know exactly where their tax bill will be.
Click to expand...
I can estimate, but I still don't know what my tax bill will be for 2009. It'll depend on how they continue to phase in the recent revaluation and where they set the mil rate. Every year it has gone up since I've lived here and every year in November my payment changes to account for this. Of course, not only does my escrow payment rise just enough to cover the new tax payments, but it goes up a little more to pay the extra taxes they already paid in July.So, let's break it out. Let's say my tax bill is $4.8k for last year. I owe $2.4k in July and $2.4k in January. Because of that, I'm putting $400 into escrow every month. Except the 2009 taxes come in at $5.4k. If I were able to pay my taxes directly, $300 of that extra $600 would be due in July, and the balance in January. Instead, come November, I have the choice to write a check to make up the $600 difference, or to raise my payment over the next year by $50/month. So I am deferring a portion of my tax payment for 4-16 months and not paying interest to do so. That's the free money I'm talking about - it's not entirely free, it's just interest free to borrow. In djcolts situation, where he seems to be in for a huge tax increase, $600 in free money could turn into a lot more (except for the 16% surcharge thing which I still don't understand). I, personally, would rather make steady payments, interest free, on this tax increase than to pay the difference all at once in July.

Now certainly there is a disadvantage from the start in not being able to invest the escrow money into something with a more favorable return, but I'd like to see a mutual fund that's earning 6-8% and is 100% safe. More realistically, you would invest escrow money in a CD or savings account, where the rates are currently more like 2.5%. As I said, my escrow account pays interest. Not 2.5%, but it's also not 0. I don't have a choice of whether to use escrow or not, so I haven't bothered to determine the rate.

 
I am looking at a refi with my current lender. I was expecting some of the closing cost to be waived.

Title Search 175.00 Title Insurance 868.00 Recording Fees 250.00City/County Tax/Stamps 170.00 State Tax/Stamps 511.00Where can I find the fees that do not need to be paid again?

 
Follows Closely said:
I am looking at a refi with my current lender. I was expecting some of the closing cost to be waived.

Title Search 175.00 Title Insurance 868.00 Recording Fees 250.00City/County Tax/Stamps 170.00 Based on loan amount State Tax/Stamps 511.00Based on loan amountWhere can I find the fees that do not need to be paid again?
Click to expand...
State?Most of the fees you listed are 3rd party costs such as title company charges and govt fees and these fees will always be collected each time you refi. The only fees I've seen waived are in section 800 of the Good faith Estimate such as the lender fees but then again I've not seen much waived in that section except for the appraisal or credit report if the mortgage co. feels generous to cover them. Origination fees are neg.

Maybe post the GFE that your lender gives you and we can put in our 2 cents. To also answer your question I can't think of any fees you will not have to pay again on a refi.

Fees you might negotiate

801 Loan origination fee (the fee you pay to the lender/mortgage co. — this is usually compensation to mortgage co./broker)

802 Loan discount (you can choose to "buy down" your interest rate)

808 Mortgage Broker Fee $xxx Compensation to Mortgage broker/company

810 Processing Fee $xxx After loan officer take your order, hands it off to an in-house processor

Application Fee -$xxx

Lender Administrative fee (Lender Fee) —$xxx

1107 Attorney fees (only if you are using an attorney)—$xxx

1108 Title insurance (you might be able to select your own title insurance company and save) $xxx

Unable to negotiate

803 Appraisal fee (these fees tend to be standard, as of 5/1/2009 you/mortgage broker will be unable to choose an appraiser per govt.HVCC action, higher costs ) —$xxx

804 Credit report (this is what the broker pays; he/she cannot charge you more) —$xx

809 Tax-related service fee $xx (taxes are taxes)

Flood certification fee—$xx

MERS fee (a fee for accessing the automated underwriting system) —$xx

Closing agent courier fee—$25

901 Pre-paid interest (the daily interest you pay if you close on your home before the end of the month) $xxx a day

903 Up front Hazard insurance premium 12 mos. on a purchase 0 on a refinance—$xxx

1001 Reserve for hazard insurance premium (1-2months at $xxx a month) —On a refi depends on month your policy renews

1002 Reserve for mortgage insurance premium if applicable— (one month at $xxx)

1004 Taxes and assessment reserves (four months at $xxx a month Purchase) On a refi. depends on month you close and month taxes are paid.

Compensation to broker (also known as Yield Spread Premium, this is the fee the lender pays the mortgage broker, you do not. It is usually 1% to 3% of the loan).

1201 Recording fees—$xxx (your county charge to record the new mortgage)

 
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Follows Closely said:
towney said:
State?
Click to expand...
VAI don't understand whey the Title process has to be done again.
Click to expand...
The title company is insuring that there is nothing clouding the title, thus the title search again. Example, you put a new roof on last year and the roofing company did not pay a sub, thus a lien was placed on your property by the sub. The new title search will find this out.When you purchased the home you received an owners title policy from the seller(protects you) which that stays with you till you sell and you paid for the lenders policy. Every time you refi. no matter if it's the same or different lender you have to obtain a new lenders policy. Lenders policy on a refinance gaurantees your lender that you actually own the property w/o issues. It insures that no one else has a preemptive position in front of the lender. The original lender's title insurance policy only provides coverage for the original first loan. If you have a prior Owners Policy you will be able to get a re-issue credit off the new Lenders policy (ask for full re-issue credit whey you are refi'ing). HTH
 
I see where you are coming from I guess. Personally I would rather have the choice of what my money is doing, rather than having it sit in the coffers of some mortgage company, but I understand that is a personal preference. But I still disagree with this:

Dragons said:
Now certainly there is a disadvantage from the start in not being able to invest the escrow money into something with a more favorable return, but I'd like to see a mutual fund that's earning 6-8% and is 100% safe.
Click to expand...
I think there are a ton of simple index funds that perform very well over time and are pretty much 100% safe. But as I said earlier, that is in "normal times." This recession has muddled much of that right now. But I can open a simple money market account and let that money sit in there and I'm still better off than what a mortgage company is going to pay in interest. So I guess my feeling on it is, if you are even remotely responsible with money and have the option to not pay escrow, I don't know why anyone would choose to do so_Oh, and edit to add, just yesterday I received my estimated 2009 tax bill. And it's only May.
 
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djcolts said:
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
Click to expand...
I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
Click to expand...
I talked to the officer's supervisor over the phone this afternoon (after some persistence on my part). Apparently the paperwork from the underwriter came into their office today, and they'll contact me if they need more info, and closing won't happen on the date in question (which is good) but likely soon.
 
djcolts said:
djcolts said:
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
Click to expand...
I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
Click to expand...
I talked to the officer's supervisor over the phone this afternoon (after some persistence on my part). Apparently the paperwork from the underwriter came into their office today, and they'll contact me if they need more info, and closing won't happen on the date in question (which is good) but likely soon.
Click to expand...
Good for you. Keep being persistent.That sound very odd. Only thing that comes from the underwriter is an approval with conditions if needed, conditions are additional information needed to get a full approval/clear to close. Are they protecting your rate lock from expiring?I've had clients who have contacted Wells and they are being told 60 days for a refinance and in some case they never get a call back from a loan officer.
 
bd3521 said:
jason12vb said:
Wooohooooo!!!!!Just got a call from my mortgage guy and he locked me in at 4.5% today! (FHA in MN, no points)
Click to expand...
3.5% down and PMI?
Click to expand...
Ok, no points but any origination fees, broker fees or processing fees. Brokers often charge origination fees for compensation, it's not a point but smells like one.
Code: 
Remember things might look good up front, but always get a "Good Faith Estimate" before you commit.
 
towney said:
bd3521 said:
jason12vb said:
Wooohooooo!!!!!Just got a call from my mortgage guy and he locked me in at 4.5% today! (FHA in MN, no points)
Click to expand...
3.5% down and PMI?
Click to expand...
Ok, no points but any origination fees, broker fees or processing fees. Brokers often charge origination fees for compensation, it's not a point but smells like one.
Code: 
Remember things might look good up front, but always get a "Good Faith Estimate" before you commit.
Click to expand...
I would like to hear bd2521 answer to this. A few weeks ago I was getting 5% with 3.5% down and PMI. With no points or origination fees. So I would say 4.5% could be possible.
 
Wooderson said:
towney said:
bd3521 said:
jason12vb said:
Wooohooooo!!!!!Just got a call from my mortgage guy and he locked me in at 4.5% today! (FHA in MN, no points)
Click to expand...
3.5% down and PMI?
Click to expand...
Ok, no points but any origination fees, broker fees or processing fees. Brokers often charge origination fees for compensation, it's not a point but smells like one.
Code: 
Remember things might look good up front, but always get a "Good Faith Estimate" before you commit.
Click to expand...
I would like to hear bd2521 answer to this. A few weeks ago I was getting 5% with 3.5% down and PMI. With no points or origination fees. So I would say 4.5% could be possible.
Click to expand...
This is my first house and I don't know a whole lot about this, but I don't think I have any of this. I don't have my GFE in front of me. I'm told the only thing I'm paying out of pocket is my 3.5% down payment and the seller is paying 5K in closing costs, which is what my mortgage guy asked for (160k house). I'll take a look at it tonight
 
towney said:
djcolts said:
djcolts said:
djcolts said:
I got my good faith estimate from Wells Fargo in the mail on Friday for my Home Affordable Refinance loan. 4.875% 30 year loan - 1 point, $1626 in closing costs. All costs rolled into the loan (include 20 days interest and 4 months escrow), plus I get a small amount of cash back. I'll save $124 a month - break even in about 25 months from the closing costs/point. Scheduled to close in about 3 weeks. I'm pleased so far - hopefully no big surprises.
Click to expand...
I've left 3 messages in 2 weeks to my loan officer. He hasn't returned any calls. I know he's probably busy - but geez - 5 minutes is all I need. The Good Faith Estimate says I'm supposed to close next Monday (an estimated date, but still), and I'll be out of town that day - isn't that kind of important for him to know?
Click to expand...
I talked to the officer's supervisor over the phone this afternoon (after some persistence on my part). Apparently the paperwork from the underwriter came into their office today, and they'll contact me if they need more info, and closing won't happen on the date in question (which is good) but likely soon.
Click to expand...
Good for you. Keep being persistent.That sound very odd. Only thing that comes from the underwriter is an approval with conditions if needed, conditions are additional information needed to get a full approval/clear to close. Are they protecting your rate lock from expiring?I've had clients who have contacted Wells and they are being told 60 days for a refinance and in some case they never get a call back from a loan officer.
Click to expand...
My rate lock expires on June 9th - so I'm not worried about that quite yet. I got a copy of the underwriter's "Convential Commitment Leter (Notice of Terms)" document about 10 days ago - so I'm not sure exactly what the supervisor was talking about. If I don't hear something by mid-to-late next week about a closing date, I'll probably call the office again. I'm not afraid to do that at all at this point.
 
regulations are getting tough out there, so definitely ask a lot of questions on fees. Do your homework on the appraisal. If you have access to recent home sale prices in the immediate area, research it. Many appraisers are no longer willing to give you comparables before hand.

Basically you could put in an offer at 200,000 on a house. Pay for the appraisal and it would come back at 180,000. No way you are getting a loan without a crazy down payment and you are now out the money for the appraisal.

If it is a rental property it is a requirement that they do seven comparables.

Also on FHA cashout refis that have an LTV of >85% you have to get TWO appraisals.

Of course appraisers are already adjusting their rates accordingly.

Rates are still great, but there are going to be lots of "hidden" costs.

Jason12vb be careful. I checked the rate sheets for a lender in MN yesterday and a 4.5% 30 year FHA was not paying a yield spread, so there is likely some other goofy costs in there. I think you said the seller is paying 5K which would make sense.

 
springroll said:
regulations are getting tough out there, so definitely ask a lot of questions on fees. Do your homework on the appraisal. If you have access to recent home sale prices in the immediate area, research it. Many appraisers are no longer willing to give you comparables before hand.Basically you could put in an offer at 200,000 on a house. Pay for the appraisal and it would come back at 180,000. No way you are getting a loan without a crazy down payment and you are now out the money for the appraisal. If it is a rental property it is a requirement that they do seven comparables.Also on FHA cashout refis that have an LTV of >85% you have to get TWO appraisals. Of course appraisers are already adjusting their rates accordingly. Rates are still great, but there are going to be lots of "hidden" costs. Jason12vb be careful. I checked the rate sheets for a lender in MN yesterday and a 4.5% 30 year FHA was not paying a yield spread, so there is likely some other goofy costs in there. I think you said the seller is paying 5K which would make sense.
Click to expand...
Thanks for the heads up. While I am certainly uneducated here, I'm using a broker recommended by a GB that I'd trust my life with who sends this guy lots of business. If there are "goofy costs", I feel relatively safe they are only goofy to me because I'm a novice and not abnormal/unnecessary fees thrown in just to make a buck. I've got friends and family going through hell with their brokers or agents trying to buy a house right now...I'm glad I got recommendations from friends and found people I can put some faith in!
 
Wanted to double check on the first time home buyer tax credit.

We plan to buy a house this year. From what I understand and have seen the tax credit is 10% of the purchase price with a max of $8,000. This is a tax credit that will be paid on your 2009 income tax.

Also from what I understand you will get the full amount ($8,000) no matter if you owe money or will be getting money from the fed.

My co-worker says otherwise. I just wanted to double check.

 
Wooderson said:
Wanted to double check on the first time home buyer tax credit.We plan to buy a house this year. From what I understand and have seen the tax credit is 10% of the purchase price with a max of $8,000. This is a tax credit that will be paid on your 2009 income tax. Also from what I understand you will get the full amount ($8,000) no matter if you owe money or will be getting money from the fed.My co-worker says otherwise. I just wanted to double check.
Click to expand...
sounds like you can actually ammend your 2008 return if you want, not sure if there is a cutoff for this.
 
Wooderson said:
Wanted to double check on the first time home buyer tax credit.We plan to buy a house this year. From what I understand and have seen the tax credit is 10% of the purchase price with a max of $8,000. This is a tax credit that will be paid on your 2009 income tax. Also from what I understand you will get the full amount ($8,000) no matter if you owe money or will be getting money from the fed.My co-worker says otherwise. I just wanted to double check.
Click to expand...
You do not have to wait until next year, you can either 1) file an amended 2008 return, or 2) change your withholdings now to so pay less taxes the rest of the year. As for your "full amount question", I believe if you owed the government $1k in taxes, you would get a $7k return. (amusing you bought an $80,000K house or more) Likewise, if they owed you $1k, then your return would be $9k.
 
update on my jumbo-conforming refi for those who live in places like SF Bay Area and NYC :hifive:

just did a 30 day lock on one of the two following rates/points, either

4.625% for 1.125 points (17 month break even), or

4.5% for 1.525 points (20 month break even).

I seem to have the option to decide exactly which one over the next week or so as my loan application

gets approved (this process used to move much quick 3 years ago :excited: )

I know the above break even numbers say 17 and 20 months, but I've also seen folks calculate the

break even for the increase in the points I would pay. In this case, the difference in cost between

1.125 and 1.525 divided by the monthly savings in my mortgage payment tells me that I'm actually

going to break even on that point difference in 60 months. A lot longer, obviously, and I guess it wouldn't

be worth it if I didn't plan on staying in this house for the foreseeable future (great school district, son is 4 yrs old,

doing some home renovation right now, etc).

But I thought I'd get some thoughts from the gurus out there to see if there's any reason I shouldn't pay the

bit extra and get down the that lovely sounding 4.5% rate. Thoughts?

(ps. either way, I am freakin' dancing pickle about this amazing monthly savings!)

 
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My re-fi closes on June 1st. Who do I ask to get a preview of the updated GFE/closing docs to make sure things are kosher? My guy who took my app way back? And do I get a copy of the appraisal at closing, or do I need to ask for that?

 
Ned said:
We're anxiously waiting to hear from the bank on what our rate is going to be when they convert our construction loan to a 30yr fixed. We locked in at 5.25% back in January (6mos, free float down). Even if we stayed at the 5.25% our mortgage payment is going to be the same as what we were paying for rent. :hifive:
Click to expand...
We finally exercised our float down option last week and locked in at 5.0%. Definitely excited!One gripe about the construction loan process (and hopefully will help someone here). I think the bank was really dragging their feet on doing the modification to collect some extra interest. When we finished construction and turned in the CO on 04/30, I was led to believe that 2 weeks was the norm for going into modification. Once we got close to that point, the returned calls were suddenly not so fast as they were in the beginning. If we had gotten to the 2 week point (5/14), we would've saved a good $1000 in construction interest. :rant: Lesson learned. I should've been pestering them daily, but got complacent.
 
The Noid said:
My re-fi closes on June 1st. Who do I ask to get a preview of the updated GFE/closing docs to make sure things are kosher? My guy who took my app way back? And do I get a copy of the appraisal at closing, or do I need to ask for that?
Click to expand...
I got another GFE copy from my original WF broker right before closing. I closed on my refi last week and the title notary they sent out to our place didn't have a copy of our appraisal, so I had to ask my WF broker for a copy of that also. The volume of refis out there must be staggering, I originally called WF on March 20th to apply and my new refi doesn't kick in until July 1st - - quite a lenghty process. Looking forward to my $490 per month mortgage payment reduction though. :lmao:
 
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