Refinance your mortgage Boston Globe
CHECK YOUR CREDIT. Your score will determine your eligibility for a new loan; check it for about $20 at myfico.com (the site also has tips for improving your score). Every 20-point decline below 740 will mean additional fees, but with rates as low as they are, it’s worth shopping even if your credit isn’t tiptop. If your home loan is underwater but you’re current on your payments, you may still qualify via the government’s Home Affordable Refinance Program (HARP), which was extended through June 2012.
KNOW THE WORTH OF YOUR HOME. Any lender you choose will do its own home appraisal, but you’ll want to get an estimate before starting the process to be confident you have enough equity to make the cost of refinancing worth the savings. The better terms will generally go to homeowners refinancing 80 percent or less of their home’s appraised value. Compare estimates from online real estate information sites such as http://www.Zillow.com or http://www.Cyberhomes.com, as well as lender sites, including Bank of America and Chase.
Adjustable Fee Mortgages – The Unfortunate Truth
If you have an adjustable amount mortgage, or else identified as an ARM, you’ve got almost certainly observed much more and far more solicitations from home loan brokers who would like to enable you to obtain a fixed amount home loan, specifically when that pace is often a month or so from adjusting. I’m going to go on a limb right here and guess which the mortgage brokers that are calling you really do not treatment about you. Should they cared about you, why would they wait around till per month or so to contact you just for the reason that your ARM will modify?
The adjustable fee home loan could be the new phenomenon for home loan brokers and mortgage firms alike. They realize that your pace will go up and that you simply will need to refinance your home loan just before also long, so right here they arrive to swoop in and be the hero. I wager that 90% in the home loan brokers that contact you had been those placing their clients into these kinds of mortgages, hence the reason for them calling you rather than the clients they worked with previously.
Regrettably schools in The us don’t possess a common finance class to teach our citizens about home possession, charge cards as well as other monetary obligations we tackle as we grow. This not only makes it possible for for us to be taken benefit of but additionally enables so known as experts to be taken benefit of with the corporations they function for. For instance, some years in the past the media and other top rating officials within the mortgage market had been telling everyone to consider an adjustable fee mortgage, but why? When you asked them again then I bet they’d say for the reason that rates are low.
The truth is, normally fixed pace mortgages possess a higher rate of interest in comparison with ARM’s, typically half a position to some level in your rate of interest. On a $200,000 home loan, an adjustable fee of 6.75% and also a fixed charge home loan at 7.75% amortized more than thirty many years possess a payment distinction of $136 per month. My guess is, if your debt to income ratio is usually to substantial around the fixed amount home loan however , you qualify for the adjustable price home loan you are searching at a household that is more than your spending budget.
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Los Angeles Mortgage Broker Explains Short Pay Refinance
www.mortgagehelplosangeles.com If the market value of your home is currently less than you owe your bank, AND if you are current in your payments ...
when referring a mortgage refinance to a broker who do you ask for a referral fee?
The broker, normally. You generally need to work that out in advance with the broker. If you're not a licensed broker or Realtor yourself, you generally cannot collect a referral fee from the borrower.
Do I have to pay a mortgage application fee, if we just signed the contacts and faxed them to the broker.?
We completed our mortgage refinance papers and mailed them to the broker. Another company has offered to beat that rate by a substantial amount and without any hidden fees. Are we obligated to pay the broker/dealer the $750 application fee. We just overnighted the papers and they have not even received them.
Not until the closing.
mortgage refinance question?
i am leaving an arm. i am refinancing. my property loan (refi) is at 6.5% 30yr conform fix. broker fee is $350. was told i need to have mort ins, do i really need that? my monthly repays will be approx 62 for mort ins, 915 for loan, and 145 for taxes, totaling about 1100 per month. the good faith est shows est closing costs at 2300. does that sound about right? thanks.
Unless you have an LTV of less than 90%, they will likely require you to get mortgage insurance. You don't want to get it if you do not need to get it. Negotiate with the lender if you can.
The closing costs seem reasonable.
Mortgage insurance is payable because your loan amount exceed 80% of the appraised value of your home. You can avoid this by requesting two different loans.
One loan would be at 80% of the value of your home appraised value. The other loan would cover the remaining loan balance.
With these two mortgage loans you would not be required to pay the mortgage insurance as required when you exceed 80% of the appraised value. You would also be able to deduct any interest on both loans.
You should check with your tax consultant and see if you are qualified to deduct your mortgage insurance from your federal income tax. This is now allowed. You have to fit into a certain earning bracket to qualify for this tax benefit.
In any refinance there are certain charges you have to pay that are required by the lender.
Fees are normally broken down into two areas
A. Recurring (Check your GFE)
1. County taxes
2. Hazard (fire) Insurance
B. Non-Recurring (Check your GFE)
1. Title Insurance charges and fees
2. Mortgage/Lenders fees & points
3. Doc Signing Fee
4. Appraisal fee
Normally your points and fees you pay for refinance or purchase of a house are tax deductable over the life of the mortgage. You should take your closing documents to your tax consultant to see what items are deductable and what items might not be deductable.
There are some mortgage brokers that have mortgage programs that charge the customers no points and no fees. On the surface this might be a good program, but we all now that no one work for free.
The payment for one of these mortgages is the rate is increased slightly to cover the closing cost and any other cost involved in the mortgage.
You should check and see which is better for you and is more advantageous to you and your situation.
When you refinance your home you should also tell your tax consultant.
I hope this has been of some use to you, good luck.
"FIGHT ON"
You could do an 80% 1st mtg and a second mtg for the remainder to avoid PMI but you will have 2 monthly payments and 2nd mortgages have a higher rate.
FHA loans work differently if you are obtaining a 30 yr loan it does not matter if you borrow less than 80% you still have to pay MI for 5 yrs. FHA 15 yr programs will allow the MI to be waived.
Loan amount around $145K / 6.5%
What is the LTV ?
Can I stop the refinance process once I signed the applications?
My mortgage broker talked me into refinancing from 6 to 5%. It's not a bad deal, but I'm having second thoughts about it because I don't like how they're rolling the FHA fee into the loan. Anyway, I already signed the papers and the closing is supposed to happen at the end of the month, but if I decide to back out, what will happen?
Also I would appreciate more opinions on whether I should refinance or not. Here's te link to that question.
I guess it won't let me post a link to it.
You can always cancel -- even up to 3 days after signing in escrow as already posted !
If you are concerned about the FEES rolling into the total amount owed, since your monthly payment went down, continue making the same payment as you were and the house will payoff sooner.
On a 100K loan you save about $70 per month which was just interest.
With interest savings that is about a $1000 a year in savings.
You can figure your savings and decide here ------
http://mortgage-x.com/calculators/extra_payment_calculator.asp
Nothing is final until the closing. You signed an application, not a loan contract.
Just be aware that there may be some non-refundable fees that you would lose if you back out. Typically the lock fee (for locking the interest rate) and the appraisal fee are non-refundable. You should only have to pay for an appraisal if the appraisal was actually performed. If you do pay for an appraisal and then back out, its possible the results of the appraisal can be used in another loan application process, thus saving you from paying the fee next time.
If you are at 6% right now and you have enough equity to qualify for a refinance at 5%, I'd say its worth it as long as you plan to stay in your house for at least 5 years and as long as you don't get screwed with unfair closing costs.
There are costs to doing a refi. . . .you will NOT actually be saving money by re-fi'ing UNTIL you recoup the additional costs, a year or more out. A FULL point is minimum difference needed to benefit by refi.
You always have a choice of rolling the FHA fees into loan or paying it outright. Putting them in loan means you don't have to come up with money, BUT you are increasing the principal amount of your loan.
Now, if your getting cash back that you don't really have to have at this point, and one of the above mentioned situations don't do it. You have 24-72 hours to back out, but you will have to argue with them.
Your loan will normally close shortly after you have signed the final loan documents. On an owner occupied refinance & home equity loan transactions.
Good Luck......!
Your loan will normally close shortly after you have signed the final loan documents. On an owner occupied refinance & home equity loan transactions.
i will link you http://www.sunrefinance.com/
Good Luck......!
Is a no-fee no closing cost loan fair?
The loan in question is a no money down 5.8% refinance where the broker is getting $14k in broker fees FROM the lender. Is this savings that should have been passed down to the consumer or is it a typical percentage paid to the mortgage broker?
A mortgage broker works on commission. This is paid by the lender. There is no part of this fee that belongs to the borrower.
A typical commission is 1% of the face amount of the loan, but it could be anything that the broker and the lender agree on.
It's just like buying a car. The price of the car is what the buyer agrees to pay and what the salesman gets in compensation is between him and the dealer.
When refinancing my home what fee's should I look to avoid?
I have heard of mortgage brokers who use low origination percentages tacking on additional fees in other categories. If in Texas I get a good faith estimate from a mortgage broker under what categories should I look. And if I am refinancing do I have to pay title insurance when I already paid if when I bought the home 2 years ago?
Use a bank and there won't be a mortgage broker's fee.
You will probably have these fees: appraisal, title insurance (this could be broken into a bunch of fees like attorney's fee, document fees, abstract fees, notary fees, fedex fees), flood certification, and a survey. Texas generally requires a survey.
What you want to avoid are application fees, processing fees, doc prep fees from the lender...most of the lender's fees in fact are baloney. If you're buying down the rate, look for a discount fee or points. If you're paying points, be sure you're getting a loan discount for it. That's what points are for...to lower the rate on your loan.
Some lenders charge application fees which will be applied to the closing costs. This is to avoid holding the bag for vendor services when the borrower changes his mind.
Origination fees are valid, but you can find a lender who doesn't ask for one, and his rates are probably competitive with other lenders.
TITLE SEARCH FEE / TITLE EXAMINATION FEE
These fees (generally expressed as either a title search fee or a title examination fee) are charged to pay for the cost of researching and/or examining the records of the county in which the property lies to determine that the title to the property is free and clear of all defects, liens and encumbrances that could affect the use and/or value of the property.
TITLE INSURANCE FEE
This fee is charged to pay for a title insurance policy (known as a "lenders title insurance policy" which protects the lender in the event there is a defect in the title to the property. Most lenders require that such a policy be purchased by the borrower at closing.
The borrower has the option of purchasing an "owner's title insurance policy" to protect the borrower's interest in the property in the event there is a defect in the title, for an additional premium. However, an owner's policy is not required by the lender.
Can I cancel my mortgage before closing?
Almost a month ago my husband and I signed papers to start processing our mortgage refinance with mortgage broker . Last week, my husband found a better deal which is lower interest rate and lower closing cost. Today, my husband got a call from mortgage broker that we can now close the deal. My husband mentioned that we are no longer interested. The owner of the company called and left a voice message that we can't just back out and we have to pay $2,000 for processing fee even though my husband and I signed that the Application Fee, Appraisal Fee and Credit Report Fee will cost us $0.00. The broker company owner also said, that not to pushed this further which I think he meant they can sue us if we back out or if we do not to pay the $2,000. We live in Wisconsin. Do they have legal right to do that? There is nothing in papers that we signed that if we back out or cancel this we will need to pay for this amount. Please need your help. We are so confuse. Will our credit score get affected? Will they win if they decided to sue us? Any help is definitely appreciated. Thank you!
I'm sure the papers you signed state that you will be responsible for any costs the lender incurres if you should back out once your approved. Read your signed papers very carefully.
If it is, you may be better off paying the $2000 and getting the other deal since it will cost you less in the long run. And the processing fee is probably points, which is basically the mortgage broker's commission. I would just tell them that you found a lower rate somewhere else. See if they can find you a deal to match the one you found.
NOT sure the dif but IF YOU are sure of your position,sick to your guns
and risk the anger of the MB. HE is about to lose an easy sale/placement of
your mort.
if unsure, close/through with him
Buy law you can actually back out of a refin 3 days AFTER you sign the papers. That is why the money isn't available until 3 days.
I don't believe you owe them anything. However, you may have signed papers saying you did. Talk with a lawyer. It will be money well spent.
Usually there isn't any fees like that. And if they did slip this 2000 into the paperwork, god knows what else they are slipping in.
GET A LAWYER
Refi'd Mortgage for debt consolidation - No one paid off creditors ?
When I refinanced my mortgage in May 07 the mortgage broker included 5405.01 in payments allocated to credit collections on my HUD statement.
His broker fees were around 6900.
I explained that the bulk of the CC collections was for a deceased relative's account of whom I was only the authorized user.
My broker said it would tak eso long to dispute it that i was better of refing and paying it off and that my credit score would go up a lot.
Well 7 months later in late November I needed a small home equity loan. I have 165k in equity in my house still and World Savings/Wachovia assured me I should easily get the loan.
Instead they turne dme down due to credit rating.
I pulled all credit reports.
3 of the 4 owed creditors still show up. So my credit was not improved!
Who was responsible for the payoffs ? My mortgage broker or the title company ?
i should add that ive just gone thru junk mail and found a collection agency dated 11/07 still demanding payment on the largest collection. (4600- HSBC wasonly authorized user though) ironically theyre only asking for 50% of total.
if they were payed why are they stll asking?
what a headache. :-(
To last answerer, Im in PA.
HSBC switched the debt to my name after my late grandfather died.
this was several years ago and at the time i was flush with cash and working a 60 hr a week job in nyc. So the only thing i did was call hsbc and write them a letter telling them since i never opened it, to remove me.
i also wrote the credit reporting agencies.
I shouldve followed up. But HSBC are total @##$%^ to have transferred it to me.
Now I will follow up on it one way or another.
The title company should have paid from the loan proceeds all of the pay-outs shown on your closing statement. Check each line item on that closing statement and determine if the credit accounts are listed. If they are, contact the title company and ask the manager why the debts were not paid, and if they were to send you written documentation of the payments.
30 Year Fixed Mortgage Refinance?
Guys,
I have a 30 year fixed at 5.75 with a loan balance enough to buy a house in OR (I live in LA, CA). My loan broker has told me recently to refi at 5.65. 0 fee, 0 points.
Sounds very tempting. Are there any gotchas that I should be on the look out for?
Thanks!
Get it in writing with a good faith estimate of costs.
The downside is your are extending your mortgage another 30 years besdies what you have already paid in.
.10% won't make much of a difference in your payment. I would probably just stick with what I had to avoid the hassles of refinancing.
Mortgage refinancing advice?
We are considering a refinance at a sub-prime lending rate of 9.1% fixed, 50-year mortgage. I'm told that when working with mortgage companies it is a good idea to get a couple different good faith estimates to see if there are any added line item charges that shouldn't be there. Here are some of what they propose to charge us for. Should we question any of them?
Loan origination fee
Appraisal fee
Credit report
Admin & Underwriting fee
Flood cert fee
Tax service fee
Closing/escrow fee
Title insurance
Endorsements
Gov Serv
Title doc prep
Recording fees
Reconveyance fee
Hazzard insurance premium
Taxes and assessment reserves
With so many added fees, how can you tell which are supposed to be there and which are padding the broker?
If it is pure profit, how does one avoid paying the listed charges - don't all mortgage companies need to make some profit?
The rate you are getting is really high! It is always good to get more than one quote. Most of the time your closing cost will always be a LOT higher with a broker. I work for Countrywide Home Loans. I would be more than happy to look over your Good Faith Estimate and see if we can bet them also I would be curious to see if I can get you a better rate. I hate to see people like your self robbed. You can reach me @ karrie_ramel@countrywide.com or at the office @ 770 619 2600
broker fee mortgage refinance - News
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Mortgage Fraud: A Scourge of the 21st Century? - Insurance News Net (press release) Mortgage Fraud: A Scourge of the 21st Century? The broker was alleged to have refinanced the homes for the borrowers, but then stole some or all of the equity checks generated by the refinance. |
Mortgage Q&A: Financing strategy in new times - Washington Times
Washington TimesMortgage Q&A: Financing strategy in new times The explanation of how the zero-cost refinance works is simple. The lender simply pays the mortgage broker a bigger fee as the interest rate rises.
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Bank on home-loan relief - Sydney Morning Herald
Sydney Morning HeraldBank on home-loan relief Refinance if possible. If you have had the same loan for more than two years then have a reputable mortgage broker provide you with a free home loan health
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Avoiding a High Price On a No-Cost Loan - Washington Post Avoiding a High Price On a No-Cost Loan All other costs, including the mortgage broker's fee if there is one, are paid by the lender. Don't confuse no-cost with no-cash. |
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10-K: WEBDIGS INC A second fee source is referred to as "yield spread premium." In certain cases, a mortgage broker might find it possible to increase the interest rate |