Refi Closing Costs - Shoe Drops!
Okay, went through my 3 month refi process, and finally got the good faith estimate on closing costs. Of course it was too good to be true from my original discussions with mortage banker, and suddenly there is an $6000 origination fee and .5 point loan discount fee that weren’t previously discussed. My total estimated…
Okay, went through my 3 month refi process, and finally got the good faith estimate on closing costs. Of course it was too good to be true from my original discussions with mortage banker, and suddenly there is an $6000 origination fee and .5 point loan discount fee that weren’t previously discussed. My total estimated closing costs are 19,678–about 10K more than I was expecting. (I don’t have to go through with it.) This is a “CEMA” loan. Before I call back and ream the mortgage banker, does anyone have any reference points on this? Has anyone done a NY refi recently and can tell me what kind of closing costs they incurred. (Original mortgage 608K) New One at 633K. Any advice? Thanks!
If you would like to get this wrapped up inside of 5 days at half the cost please let me know.
I recently did a re-fi with my current mortgage company (Wells Fargo). If I went to another mortgage company, there would have been an extra @$6,000 that Wells would have charged the new mortgage company to transfer my loan. The new mortage company would have passed this charge to me. Could this be the problem? If it is, the new mortgage company should be able to lower your rate accordingly (i.e. to make you whole) if they want your business. Have you talked to the banker you are dealing with? What are they saying?
how are the assessments going on refi’s? What sort of equity are the looking for?
mshook – Chase missed the first deadline in June, and had to start the application again.
They locked in at the original 4.8 and kept it there. We too were beginning to think it was some kind of game, but they admitted that they were simply overwhelmed with applications. I tend to believe them after speaking with the people handling the settlement.
We finally closed last week. It was more nerve-wracking than any mortgage we had ever done, mainly due to the length of time it took. Hang in there, and good luck with the closing.
buttermilk – I’m currently waiting on a Chase refi. Did you keep the original rate? I was thinking they are running some kind of racket where they drag their feet for so long you lose your rate….
Sounds outrageously high. There shouldn’t be an origination fee on the refi. We just did a refi for 225K with Chase and the closing costs including settlement fee and title search was 2250. It took five months to finally get it done.
Those charges seem outrageous. $6000 origination fee is crazy for any loan. The .5 loan discount fee is what it is, but if they didn’t tell you in advance that it was necessary to get the rate offered then they were just lying to you.
Are you doing cash-out or rate & term refi? If the latter then the discount fee is $3000 plus the origination fee leaves other $10000 in other charges which I can’t even fathom where they come from if you’re doing a CEMA in which there’s no mortgage tax. Is it a house and when you did you last finance/purchase it? I’m assuming you can get the title insurance renewal rate which is about 0.0025% of the principal. That’s $1500. Lawyer’s fee should fee $500-$1000. CEMA fee should be no more than $1000-$1500. Appraisal $1000.
Sounds like they’re adding in mortgage tax somehow.
You can get around the mortgage tax on a refi.
My head’s too fuzzy right now to do the math, but the CEMA should take care of the origination fee for the original $608K, and you should be paying 1.8% tax on the remaining balance – so 6K seems a bit high.