Still doing a refi... need help

Status
Not open for further replies.
D

daves66nova

Joined
Apr 11, 2004
Messages
4,046
Location
los angeles
They sent me paperwork now with terms. This is where I need help in. Are these junk fees? It says that I can shop for these services. Title-Abstract Fee $175 POWERHOUSE TITLE

Title-Examination Fee $895 POWERHOUSE TITLE
GROUP

Title-Lender Title Insurance $450 POWERHOUSE TITLE
GROUP
KELLEY L
2309 BELAIR RD
FALLSTON, MD 21047
(443)299-6273
Title-Examination Fee $895
Title-Lender Title Insurance $450
POWERHOUSE TITLE
GROUP
POWERHOUSE TITLE GROUP
23090 BELAIR RD
FALLSTON, MD 21047
(443)299-6273 .Thanks
 
Origination Charges.
% of Loan Amount (Points)
This lock in agreement describes the decision you have made about reserving (locking in) the interest rate and fees associated
with your mortgage loan. Interest rates may change and may impact the amount of your loan payment. Please carefully read
the terms of this agreement.
Lender Borrower Date
Property Address:
$
Interest Rate:2.75%

loan amount 233,000.00
Discount points 3,963.33
Underwriting fee 495.00

VA Fixed 30 Year Standard IRRRL
360 months
Origination fees 4,458.33. Origination fee is total of both.
 
Can you get 3 1/4 no points no cost?

It always appears Refi is a buddy scam system everybody is on the take for a taste upfront including title ins co.
Was the property in refi in the past 7 years? Are you orginal owner? Any property line changes? If so title search should be moderate

Good luck. My first loan was 10% and a killer way to start homeownership. Under three % fixed is like a godsend. Embrace it.
 
Last edited:
Originally Posted By: ARCOgraphite
Can you get 3 1/4 no points no cost?

Was the property in refi in the past 7 years? Are you orginal owner? Any property line changes? If so title search should be moderate

Good luck. My first loan was 10% and a killer way to start homeownership. Under three % fixed is like a godsend. Embrace it.
I just bought house 3.5 years ago. house is 55 years old or so. No property line changes
 
Is it a different loan company? I'd think the title search would still be valid from 3.5 years ago, but I don't do refi's that often. Could be a point of negotiation, although the price doesn't look bad, everyone wants their cut.
 
Originally Posted By: supton
Is it a different loan company? I'd think the title search would still be valid from 3.5 years ago, but I don't do refi's that often. Could be a point of negotiation, although the price doesn't look bad, everyone wants their cut.
Bad stuff can go on record the day AFTER a title search. The title must be run to the date and time the new document is recorded.
 
Originally Posted By: daves66nova
They sent me paperwork now with terms. This is where I need help in. Are these junk fees? It says that I can shop for these services. Title-Abstract Fee $175 POWERHOUSE TITLE

Title-Examination Fee $895 POWERHOUSE TITLE
GROUP

Title-Lender Title Insurance $450 POWERHOUSE TITLE
GROUP
KELLEY L
2309 BELAIR RD
FALLSTON, MD 21047
(443)299-6273
Title-Examination Fee $895
Title-Lender Title Insurance $450
POWERHOUSE TITLE
GROUP
POWERHOUSE TITLE GROUP
23090 BELAIR RD
FALLSTON, MD 21047
(443)299-6273 .Thanks
I'd say you ought to ask for a better price from the company doing the search and providing instrance. The title examiners these outfits hire get paid about a 100 bucks for a refi title. For 900 bucks you can get an uncontested divorce in many jurisdictions.
 
Last edited:
Unfortunately, refi does not mean that you will save any money.
It costs a substantial amount of money that lender did not tell you when they offer a refi.

So, what a lot of people say is "but I reduce my monthly payment".
Yes, that is true but do you reduce the total interest payment?
The answer is no unless you refi at a term less than the time that you need to pay off.
Example refi to 15 years coming from 20 years left over from 30 years term and it is refinance without increasing the principal amount.
But even then, one still have to pay all the fees.

Refi will always reduce the monthly payment because the total principal amount will be spread out over longer term.
Which means people have to start over paying the compounded interest.
So, in total, it will not reduce anything and the lender is the one that makes the money, not you.

I bet you the lender did not mention that at the offer.
I wish lender give you an amortization schedule when they offer a refi.
Then you will see how much you really pay.
I was really depressed when I saw that the first time a long time ago.

Sorry for the rant, hopefully, you all know about this.
 
Last edited:
Ok. What about in my case. 243,000 first loan with 3.25%, started 3.5 years ago. Doing refi now with 30 year, 2.75% fixed.I plan to pay 100.00 a month extra towards principal. This good?
 
If I'm doing the math correctly...

$243k at 3.25% is a monthly payment of $1,057.55. I come up with $137,718 paid in interest.

$233k at 2.75% is a monthly payment of $951.20. I come up with $109,432 paid in interest.

$233k at 2.75%, monthly payment of $1,051.20. I come up with paying off around month 310, around July 2042. Total paid was $294,776, or $92,676 in interest.

[Looking at the table, starting at $243k, I see it took 25 months (not 3.5 years) to come down to $233k.]

So, doing the refi, you save ((138k - 93k) - 4.5k(origination) - 1.5k (title)) or $39k.
 
Originally Posted By: daves66nova
Ok. What about in my case. 243,000 first loan with 3.25%, started 3.5 years ago. Doing refi now with 30 year, 2.75% fixed.I plan to pay 100.00 a month extra towards principal. This good?


IMO, it is not worthed because you have to pay some extra to refi.

In this case you loose 3.5 years and go back to 30 years.

Why not pay that extra $100 in this loan instead of loosing that 3.5 years and paying extra to refi?

Or try to get a 15 years, then it is a better deal.
 
Last edited:
I barely make ends meet if I don't do overtime. @00 less a month will surely help a lot. If possible, I would still pay 100 a month extra when possible.
 
Originally Posted By: daves66nova
I barely make ends meet if I don't do overtime. @00 less a month will surely help a lot. If possible, I would still pay 100 a month extra when possible.


I would not want to be constantly stressed like that. I recommend that people not listen to realtors and loan officers about buying as much as you can afford.

Rather than refi, buy something that you can afford without barely making ends meet. I don't know your age, but try pick a home you can afford on a 15 year loan , with out struggling to make ends meet. You will be happier in the long run.
 
Realtor here. Don't listen to this advice because it's free and it's correct.

He can't buy another place because he can barely afford his current payment. It costs money to sell and buy another place.

He also doesn't know the APR. He should use a mortgage calculator and see what the payment would be if it were 26.5 years instead of 30 which is what he has now. The savings are illusionary because he just added another 3.5 years worth of mortgage payments. Like going from a 15 year to a 30 year, of course the payment is always lower if you extend the payment period. Same as going from a 4 year car loan to a 5 year loan. Too many people focus on just the monthly payment.
 
Originally Posted By: Wolf359
Realtor here. Don't listen to this advice because it's free and it's correct.


He also doesn't know the APR. The savings are illusionary because he just added another 3.5 years worth of mortgage payments. Too many people focus on just the monthly payment.
I wrote what my APR is ,about 5 posts ago. I know I'm not "saving". I just could use a lower monthly right now, as I'm in a single income household with 2 kids and wife.
 
Sorry, I meant the effective APR which is the interest rate after you factor in the fees. I didn't see it mentioned in your previous posts, just the interest rate. They usually just quote it as some APR number, but it's normally buried in the docs.

The APR rate is also calculated over the life of the loan, but the typical length of a loan is about 3 years.

Anyway, lets do some math.

$243k at 3.25% was a monthly payment of $1057.55. You paid off 3.5 years or 42 months.

So now you're down to $233k, at 2.75% with about $6105 in fees, escrows for tax, insurance and pre-paids you'd have to pay anyway so they're not really fees. So if you calculate the payment of 233k over 26.5 years, the monthly payment is 1032.63. So the lower interest rate is saving you 24.92 a month. So you take that $6105 divided by $24.92 and you'll start saving that $24.92 after about 245 months or about 20 years and 5 months and you'll save a total of $1819 over the life of the loan if you kept the term the same as the original loan.

Hope that helps. The bulk of your savings is really coming from extending the term of loan and making 3.5 years more mortgage payments.
 
Going back to the math I did earlier, I showed that he'd save $39k on this refi, if he paid an extra $100/month into the loan, or basically kept the same payment, and still going to 30 years. If he pocketed the "savings" he still saves about $23k over 30 years.

Small savings, and he has some upfront costs to contend with, which may make it not a wise move at this time.
 
Status
Not open for further replies.

Similar threads

D
  • Locked
Can these refi service charges be beat?
Replies
12
Views
2K
Excel
Back
Top Bottom