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- Thread starter SoapyCy
- Start date
Yeah I don’t include escrow for closing costs because it’s not really an expense. We avoided having to do an appraisal which did help lower our cost.
FYI - some 15 year rates are down to 2% (!!!). But struggling to get someone to respond back to me (I've reached out directly to 3 banks/credit unions over the past week - and nothing back yet).
Most banks and credit unions have been swamped with mortgage and refinances for 8+ months. I know many had stopped taking applications for refis because they simply didn't have the staff to keep up with demand.
For those in the business - if these banks all sell to Fannie Mae, and the interest rate is set by the fed rate, why not just have the government do loans? What is the purpose of a network of competing banks who all offer the same product at the same rate?
I’m not in the business but would guess it would be a bad thing to have a single entity doing all the loans - lack of competitiveness on originations could lead to really high closing costs and origination fees IMO.
If you find one that is taking applications don't expect a quick turn around to close right now either as the title companies are swamped too. Applied for a refi nearly 5 weeks ago and the bank is just waiting on the title work at this point so we can schedule a closing date. With Thanksgiving next week I don't expect to close until sometime early December probably.
Surprised that rates are getting any lower because most banks seem to be raising them when they get overwhelmed with applications so it slows down their volume a bit or like you mentioned some just stop taking applications altogether.
Reach out to @CSnyder at Northwest bank. I was in a similar spot as you with not being able to find a bank to refinance in October and I reached out to him after he posted in this thread. My refinance was underway within a week. The online system has been super easy to communicate and upload any documents.
He's been great to work with. Closing costs are about average, not as cheap as some in this thread but definitely not the highest either.
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Spread out the risk? If one bank of many fails, that's a problem. If all, or the only bank, fails, well cant happen, huge taxpayer bail out, see 2008.
some would tell you that because FNMA is in conservatorship, it's kinda one in the same. Trust me...you don't want the gov't having any more to do with mortgages than they currently do via VA, USDA and FHA. In no particular order, those are the worst three programs from a design, support and execution perspective.
escrow isn't a CC...and the $250 inspection fee after the federal disaster was a FNMA mandate...the cost was predicated on the appraisal company and what they charge...I saw some at $150 and others at $250. Fairly ridiculous amount considering most didn't do anything but drive by or say they drove by.
For those of you who live in Clive or nearby. Try Luana Savings. You can get the no closing costs option. Which means you get a slightly higher rate and lender pays closing costs. As some have said, it helps if you don't have to issue an appraisal.
I started a refinance at Collins credit union a month ago for 2.5% on a 30yr with no cash out. They aren't making me do an appraisal so cc's are about $1250. But it's almost 75 days to close
I tried them first with living in Polk City but they weren't taking new applications last i knew.
Yep, I did reach out. And if I can keep business within the Cyclone fan community - even better.
Generally speaking, Luana doesn't jack the rate to cover your costs. They consider the loan an asset and make servicing revenue off of it. In these busy times, they may increase the rate but most are doing it to slow volume, not to credit you for costs.
Just got the early disclosures. We just locked 2.125% for 15 years. We did the whole Covid Home Improvement thing like many others, and requested $60,000 cash out. No origination fee, but the disclosure shows administration fee of $250. Bank is crediting us $500 in closing costs so we are only paying $700 of the disclosed $1200 closing costs.
We refinanced from a 20 year loan at 3.00% and had 16 years left. Went to 15 years at 2.125%. Our monthly payment increased about $200.
We have all of our accounts with a small community bank, don't think that matters but may have had something to do with the $250 administration fee versus no origination fee. But they "partner" with the FHLB of Des Moines through the MPF program. Not sure what any of that means besides the fact that the bank gets 0.25% to service the loan, meaning they don't sell it and I make the payment to the bank and the bank also holds the mortgage.
Insane. We add on to our house get $60K cash out, take 1 year off my loan life and I pay $700 upfront and my payment only goes up $200 a month. I remember 4 years ago telling my wife we would never refinance our house and lose our 3.00%. I have a feeling I will be telling her the same thing again this time.
We refinanced from a 20 year loan at 3.00% and had 16 years left. Went to 15 years at 2.125%. Our monthly payment increased about $200.
We have all of our accounts with a small community bank, don't think that matters but may have had something to do with the $250 administration fee versus no origination fee. But they "partner" with the FHLB of Des Moines through the MPF program. Not sure what any of that means besides the fact that the bank gets 0.25% to service the loan, meaning they don't sell it and I make the payment to the bank and the bank also holds the mortgage.
Insane. We add on to our house get $60K cash out, take 1 year off my loan life and I pay $700 upfront and my payment only goes up $200 a month. I remember 4 years ago telling my wife we would never refinance our house and lose our 3.00%. I have a feeling I will be telling her the same thing again this time.
FHLB MPF is a very common product community banks use to access the long-term fixed-rate mortgages. You pretty much nailed the MPF program. The bank technically does sell the loan but it sounds like they retain the servicing and the bank receives a payment from FHLB to service the loan on their behalf. For the consumer, it's typically the company servicing your mortgage loan you care about, not who is holding the loan on their balance sheet. I've used this program and variations of it for years and it's honestly one of the best ones out there assuming the rates are in line with other resources. For the consumer, they get to work with the banker they originated the loan with and continue to make payments to that institution. Few things are more annoying than having your mortgage loan servicing sold a million times. For the bank, they get to offer the long-term fixed-rate mortgage without accepting a ton of interest rate risk and they get to maintain a relationship with the borrower.
The current administration has been trying to reform/remove Fannie and Freddie from said government control - they certainly don't want to take control over more of it. That will not be the case under Biden however.
