What costs to expect when refi?

[Laurajean1014]

Bank sent docs on refi my home. They want me to pay their attorney's fee, mine (of course), processing fees, courier delivery fee.......

They want me to pay a hazardous fee???? and homeowner insurance (I already have insurance). Is this typical?

They also cannot seem to get the discount points right....keep overcharging me...

This is becoming fustrating. If I walk away it would only cost me $295. Also, I am refi with the same bank I currently have my home with. You would think they would know more.....!!!

Please help or advise.

Thank you.

 

[Laurajean1014]

 

[fkj2]

Don't know for sure if the answers to your questions are there but check out www.crown.org. It's a Christian concepts financial website with TONS of good, sound financial advice. And for those not into religion, the advice is still as good.

I know the news has been advising (translate, warning ) people who are financing about paying "extra" and unnecessary fees. Good luck.

 

[annemariec]

Hi Laurajean1014,

We just did a refi, and the misc. fees you listed look familiar, mostly.

We didn't get an attorney for the refi. it's not necessary in all cases. We went with a title company. (Cost less, same service)
processing fee and courier fee we paid as well.

We didn't pay for an attorney for the bank. That sounds wierd to me, but I'm not an expert. You may want to ask your lawyer if you are requried to pay for the bank's lawyer. He/she will know the answer to that one. If he/she says no, you are off the hook. (I think the hazardous fee and the homeowner's insurance are standard.)

The scenario you stated about the bank not getting the discount points right --- we experienced that too. I kept notes in the office with the refi. specialist and kept the notes next to the phone. Referred to them quite a bit when calling to ensure the lock in rate was what we were quoted the day we filed papers. It was a mess! We were told they were inundated with applicants. They were swamped and made numerous errors. Not fun.We did get it all ironed out. (I'm so glad I took notes.) The refi. was worth the effort!

As an aside, I was quoted closing costs could run between 3-5% of the loan. I asked how I could reduce the closing costs and was told you can have your title and survey re-issued, if there has been (and is) no required changes. That will help to keep closing costs down towards the 3% range.

I hope this helps. Good luck!
Annemarie

 

[Laurajean1014]

Thank you for your comments and help.

Refi is worse than building a house. At least when you build you are expecting the unexpected, but not when you are refi with the same bank that gave you the funds 4 years prior! With the same mortgage rep!

I called the mortgage rep last night and told him that if he could not explain the charges and relinquish some of them, then we have no deal.

I am calling my attorney this morning to let him know this. I will also ask him if I am required by law to pay for another attorney whom does not represent me....... (its light being on trial and paying for the DA to put you in prison)....

You can't make this stuff up.


Also, I cannot believe that no one on these boards is a refi or mortgage lender................... hmmmmmmmm.

Thank you very much for your help......

 

[jsmith]

You can expect the same fees on a refi that you would on a new loan-apprasial, credit report, title, prepaid interest and homeowners insurances, discount points, filing fee's.
Did the bank keep or sell your previous note-if they sold it they may be working with at different second company now which will make some difference-hazard and homeowners are the same thing they just usually call it hazard in the prepaids and then homeowners in the escrow-you insurance company has to be notified of the change in lienholders if they sold the previous note and now the bank or someone else will be holding it. You also have to pay two months of taxes into escrow on the new note.