??? about cost of refinancing

[mamaLori05]

I believe in our state both my and my DH had to be on the loan. My DH bought our first house when we were engaged, but as soon as we refinanced I had to be added to the mortgage. Not a big deal to me.

I don't know everything about the loan processes, but I do know that we refinanced our last home 2ce within 5 years and never paid anything extra. That was before the housing market crashed, so things may have changed. We also never had to have any permission from the previous mortgage company in order to refi, infact we never even spoke to them. We went through our bank and they took care of it all.

We just recently built again, and did call around to different banks to be able to get the loan we wanted with the % down we wanted. Check with the smaller independant banks. They seem to be a little more lenient still, as long as you have excellent credit, which it sounds like you do. Good Luck!!

 

[tinker&belle]

We did a refinance last year. When we went to one of the big banks, the lady was REALLY pushing us to do an FHA mortgage, saying we might not qualify since Freddie and Fannie were in trouble, blah blah blah...

This was a lie!

It didn't make sense to us when were talking to her and she kept talking in circles about how we *might* not qualify for a conventional loan and that would look bad to try to get an FHA loan. She was double talking this right after telling us how great our scores were (I won't post specifics, but they were quite high.)

We called my DH's aunt who works as a broker and she said the reason she was so heavily pushing the FHA loan is...FHA LOANS ARE MORE PROFITABLE TO THE LENDER.

So beware about the FHA loans, especially if you are currently on a conventional loan. For FHA loans you have to own 20% of the LOAN to get out of PMI but with a conventional you only have to own 20% of the worth. With our refinance our house appraised high enough that we don't have PMI anymore which is HUGE!

So to sum up if we had gone with the first loan we were quoted at Chase not only would we have been paying a large origination fee to her, we would have been paying PMI for the next 12 years or so thanks to her *expert* advise. I would get a second opinion/estimate and maybe a third. Try a small local bank (that's what we did) or a local credit union.

Good Luck. Don't sign anything until you would be comfortable explaing it to someone else. It is YOUR money and you have to live with it. They need to earn your business, not the other way around.

 

[jessica52877]

The rules vary from state to state, but it's my understanding that in some states you will be required to be on the mortgage no matter what since you're married to your husband. Additionally, if both you and your husband work, but his income isn't enough to qualify for the mortgage on his own then you would be required to be on the mortgage. Finally, if your name is on the deed to the house, but you aren't required to be on the mortgage you will still need to be present at closing and sign some paperwork acknowledging that you are aware that your husband is taking out a mortgage against the property that you own.

I assume I don't have to be on the mortgage in GA since I have never been before. We bought the house married and refinanced once (but only one loan) and I have never been on it. I have been at the closing of each to sign like you said. I don't work, so no income really. I do make maybe $3,000 a year and claim it, but not hardly an income in my opinion.

I believe in our state both my and my DH had to be on the loan. My DH bought our first house when we were engaged, but as soon as we refinanced I had to be added to the mortgage. Not a big deal to me.

I don't know everything about the loan processes, but I do know that we refinanced our last home 2ce within 5 years and never paid anything extra. That was before the housing market crashed, so things may have changed. We also never had to have any permission from the previous mortgage company in order to refi, infact we never even spoke to them. We went through our bank and they took care of it all.

We just recently built again, and did call around to different banks to be able to get the loan we wanted with the % down we wanted. Check with the smaller independant banks. They seem to be a little more lenient still, as long as you have excellent credit, which it sounds like you do. Good Luck!!

Thank you! That was very informative. I have an account with a pretty small bank and thought I would check with them before I check with our other bank.

We did a refinance last year. When we went to one of the big banks, the lady was REALLY pushing us to do an FHA mortgage, saying we might not qualify since Freddie and Fannie were in trouble, blah blah blah...

This was a lie!

It didn't make sense to us when were talking to her and she kept talking in circles about how we *might* not qualify for a conventional loan and that would look bad to try to get an FHA loan. She was double talking this right after telling us how great our scores were (I won't post specifics, but they were quite high.)

We called my DH's aunt who works as a broker and she said the reason she was so heavily pushing the FHA loan is...FHA LOANS ARE MORE PROFITABLE TO THE LENDER.

So beware about the FHA loans, especially if you are currently on a conventional loan. For FHA loans you have to own 20% of the LOAN to get out of PMI but with a conventional you only have to own 20% of the worth. With our refinance our house appraised high enough that we don't have PMI anymore which is HUGE!

So to sum up if we had gone with the first loan we were quoted at Chase not only would we have been paying a large origination fee to her, we would have been paying PMI for the next 12 years or so thanks to her *expert* advise. I would get a second opinion/estimate and maybe a third. Try a small local bank (that's what we did) or a local credit union.

Good Luck. Don't sign anything until you would be comfortable explaing it to someone else. It is YOUR money and you have to live with it. They need to earn your business, not the other way around.

I feel like they need to earn my business too! That is all good to know about FHA's. I did think it was a little odd that they were pushing for that after so long of having the other. I also found it odd/interesting that the orginal people pushed for us NOT to have an FHA.

 

[clutter]

Appraisal Fee 400.00
Flood Certification 16.00
Mortgage Insurance Premium 2,537.50

Title services and lender’s title insurance 1,076.96

Government recording charges 56.00

Transfer taxes 474.11

Initial deposit for your escrow account 1,240.02

Daily interest charges 272.84 (15 days)

-------------------------------------------

Then Your Adjusted Origination Charges

Our origination charge 7,494.02
then I don't understand how the credit was figured out but -4,573.65
making my adjusted origination charges 2,920.37

The person is trying to tell me often that it isn't costing me any $$ because I am not paying him OOP. It is being rolled into the loan. That is still paying for it and he seems to not understand it. No one will ever convince me otherwise!

The origination charge is generally a point. Most banks won't drop that.

However, the daily interest is something that is 'replacing' the interest on your mortgage. In other words, it's an estimate of the interest from the day you close to the first day of the next month. For instance: You settle on April 20. The daily interest needs to be paid at closing through the 30th. Mortgages are paid in arrears. You will have to pay interest to your old lender through the 20th, pay the new lender from the 20th to the 30th, and no payment will be due until June 1. So the interest paid at closing is sort of like in lieu of your May 1 mortgage payment. I generally don't count that as a cost of re-financing, since I had to pay it anyway.

As for your excrow deposit, if you have one with your old bank, you will be refunded that amount. Title insurance - if you have your old policy and close at the same escrow agents, that could be reduced. The mortgage insurance premium means you have a greater than 80% loan-to-value ratio. You might see if the lender will let you pay monthly instead. Don't know what's going on in the market lately. If you're close to the 80%, that may go away if your appraisal comes in higher or you can finance a little less.