Spencer
Veteran Member
- Joined
- Jan 2, 2002
- Messages
- 1,270
- Location
- Western Michigan
- Tractor
- NH TC33D w/R4 Tires, Rear Remote, Hydraulic Toplink, 2 Auxiliary Work Lights, 7308 Loader w/Kasco Uni-Hitch (Quick Tach)
Have any of you refinanced lately? I have a 15 year fixed rate mortgage at an even 7%. We bought this house around June of 2001. We got the original load through a local company but they sold our mortgage before the first payment was even due. That original loan officer said last week that he could easily get me a refinance rate of no higher than 5.35% for no more than $1200 or $1300 in closing costs. I asked him if he could be more specific on the closing costs and he said that he would have to run it through the system. So he said he would do that and get back to me by yesterday. He did call back and leave a message yesterday saying that it would be no problem to get the loan (even though my income dropped significantly in 2002) and that they could do a drive-by appraisal instead of a normal appraisal. The drive-by appraisal will cost significantly less money.
Just to check, I called my current mortgage company (the one that bought our mortgage). They said that refinancing with them would be the best and easiest route (as if they would say anything else). They offered me 5% fixed rate (also 15 year) for less than $1000 in closing costs. She said that I would not need to be re-approved for the loan because I was already a mortgage customer and that there would be no appraisal at all. I asked her to be more specific about the closing costs so she tried to break it down for me.
Credit report- $6 to $30 (she would try to make it $6)
Title company fee- $275
Title insurance- $492
Settlement closing fee- $125
Courier- $16 (overnighting paperwork back and forth)
Recording fee-$100
Tax service fee- $10
This adds up to a worse case of $1048 in closing fees. The only fees that I questioned were the settlement closing fee (not sure what that is), the recording fee seems a little high, and the tax service fee (she didn't know what that was for). When I questioned some of these fees she said that these were the highest they would be and if the actual costs were less than that savings would be passed on to me. If I went this route my new payment would be $174 less per month so I would have recouped my closing costs in less than 6 months.
What do you all think? I have been self-employed for over 13 years so I don't feel like running all over to a bunch of different lenders to try and get a better deal. If you don't know already, lenders often look at self-employed quite differently than regularly employed people. I am pretty sure that I could get that local company to give me the same rates for around the same costs. It would involve a lot more paperwork on my part, take longer, and they would probably just sell my mortgage again so I don't see the point.
Are there any things in particular I should look out for in the refinance paperwork? I will have my lawyer look them over of course but if you know of some common tricks that might be tried then please pass them along.
Just to check, I called my current mortgage company (the one that bought our mortgage). They said that refinancing with them would be the best and easiest route (as if they would say anything else). They offered me 5% fixed rate (also 15 year) for less than $1000 in closing costs. She said that I would not need to be re-approved for the loan because I was already a mortgage customer and that there would be no appraisal at all. I asked her to be more specific about the closing costs so she tried to break it down for me.
Credit report- $6 to $30 (she would try to make it $6)
Title company fee- $275
Title insurance- $492
Settlement closing fee- $125
Courier- $16 (overnighting paperwork back and forth)
Recording fee-$100
Tax service fee- $10
This adds up to a worse case of $1048 in closing fees. The only fees that I questioned were the settlement closing fee (not sure what that is), the recording fee seems a little high, and the tax service fee (she didn't know what that was for). When I questioned some of these fees she said that these were the highest they would be and if the actual costs were less than that savings would be passed on to me. If I went this route my new payment would be $174 less per month so I would have recouped my closing costs in less than 6 months.
What do you all think? I have been self-employed for over 13 years so I don't feel like running all over to a bunch of different lenders to try and get a better deal. If you don't know already, lenders often look at self-employed quite differently than regularly employed people. I am pretty sure that I could get that local company to give me the same rates for around the same costs. It would involve a lot more paperwork on my part, take longer, and they would probably just sell my mortgage again so I don't see the point.
Are there any things in particular I should look out for in the refinance paperwork? I will have my lawyer look them over of course but if you know of some common tricks that might be tried then please pass them along.