1. Broker is still your best way to go! Broker or Banker (not a bank) has access to better programs from many sources, unlike you local bank that is limited to it's own products. (FEES ARE THE SAME, BUT BANKER AND BANK HAVE MORE ROOM TO HIDE THEM - DON'T FALL VICTIM TO NO CLOSING COST PROGRAMS UNLESS YOU ARE REALLY NOT PLANNING TO REFI OR SELL IN NEXT 5 YEARS AND YOU ARE 100% SURE ABOUT THAT) #2. When you visit your first broker or banker or bank GET A COPY OF YOUR CREDIT REPORT (DEMAND IT) also get Good Faith Estimate with fees and rate. Have them sign it. #3. When you shop around with another institution, make sure not to give them your social but instead provide a copy of credit report that you received from previous institution. Make sure you black out you social on a copy of the report, since excessive requests by brokers will get your score down, thus hurting your chances in receiving better rate. #4. Fees: Brokers, Bankers, And Banks will all charge same amount fees!!!!!! (IF SOMEONE TELLS YOU ITS NOT TRUE, THEY ARE LIARS - unless you are going for no closing cost program with your local bank, where they pick up TITLE portion of the bill)A good deal is when above mentioned institution charges application fee, processing or underwriting fee and 2% comission. This is considered a FAIR Deal. There will be other charges such as title insurance, escrows, bank attorney, prepaid interest, mortgage tax, and some small fees that are regular. Your total closing should range between 4-5% of the loan amount (if your state does not charge mortgage tax then it should be 3-4%)Watch out for Good Faith Estimate fields with word such as DISCOUNT (loan discount, broker discount etc....) this field should reflect both percentage and dollar amount but in any case this field most likely will include a charge that will be explained to you as a misleading one such as POINTS (there are no such thing as points - a huge prank on part of dishonest brokers or bankers to make more comission). It is better that you do not see any numbers in such fields unless you have requested to buy down the rate. (assuming that you were quoted 6.00% rate and you want 5.750% then theese fields are acceptable since you are buying out a lower rate. Also that is where shopping around comes in handy) #5. Do not assume that attorney and his referral will get you a good deal ---- they are in the same plate!!!!!!#6. VERY IMPORTANT...... AT the closing do not agree to a deal and do not sign any papers if you see a discreptancy in what was promised and what is on the desk to sign. YOU ARE NOT OBLIGATED TO ANYTHING just walk away. Even if after the closing you have come home and you have discovered that you still signed papers that are not what was promised, you still have 3 days to reject a loan. As a homeowner on a refinance transaction you have 3 days after you signed your paperwork to make up your mind. Don't be afraid to do so since it takes only 48 hours to correct paperwork for the financial institution, and they will reclose you under correct terms. They rather make something than nothing but they will try and get more out of you. So try not to have you social ran all over the place, shop around, and check your papers at the closing, don't be afraid to reject if you see different outcome. Banks are not always better, see local brokers also. Stay away from Adjustable Rate Mortgages and Interest Only. Fixed Rate Mortgages are quite cheap now. Consider FHA Mortgage but beware of mortgage insurance that it carries where it may put additional financial burden on you. Review your options carefully if your payment becomes lower, if you taking out cash and your payment still same or even smaller. It's ok to pay 2% broker fee -- at least it is not 4 or 5 % and it costs them money to do process your loan, they want to eat too and have kids to feed.
PAY YOUR MORTGAGE UNTIL YOU HAVE ACTUALLY CLOSED ON IT!!!!!!!!!! YOUR BANK WILL REIMBURSE YOU FOR EXTRA MONEY THAT YOU HAVE PAID!!!!!!!! PLUS YOU GET TO HAVE A MONTH FOR FREE Simple rule of refinance: call your bank and get a payoff... payoffs are always more than the balance you see on your statement (pro rated finance charges) Always request your payoff for a month ahead, this way your calculations will be more accurate. Take that payoff amount and multiply it by 4 or 5 % , then add this result to your original payoff amount and it will be your new loan amount (if you are not taking any cash out, have no liens or violations on property or not paying debts). In case if you are paying off some liabilities or cashing out, then take payoff amount add all your extras there and then add 4 or 5 percent. So having done that when you come to financial institution you will know ball park figure for your closing cost and new loan amount, obviously if you see that number to be higher you will know that they charging you to the limit, if that number is lower then these guys are hon
07-30-2009, 01:38 PM
what is the mortgage refinance tips?
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