Refi Mortgage With HSBC
We have mortgage with HSBC and considered to refinance it with HSBC or TDBank. I calculated NPV of each for monthly payments plus closing costs and TD is very slightly better. Is there any reasons to stick with the current Mortgage originator?
We have mortgage with HSBC and considered to refinance it with HSBC or TDBank. I calculated NPV of each for monthly payments plus closing costs and TD is very slightly better. Is there any reasons to stick with the current Mortgage originator?
bobjohn- 4.375% sounds high for a 15year. The TD bank is a better deal.
I can’t believe the HSBC is trying to get away with charging 4.375% on 15 year fixed. They are blatantly taking advantage of their clients that need CEMA’s by overcharging about .5% higher.
Adam Dahill: I compared both 15 year fixed confirming APR no points
HSBC:
http://www.us.hsbc.com/1/2/3/personal/home-loans/mortgage/mortgage-rates/nat-rates
TDBank:
http://tdbank.mortgagewebcenter.com/Default.asp?bhcp=1
APR of 3.832%? Are you going for a 15yr fixed or an Adjustable Rate?
The 4.375% sounds like a 30yr fixed quote but the TD bank’s don’t.
Make sure that you are comparing apples to apples and vise versa. It currently sounds like you are comparing two different products.
thank you for the replys. The HSBC’s interest difference (4.375 v. 3.832 APR) offsets the additional closing cost associated with tax (5K v. 9K total costs). So if there is no other issues with jumping the bank, we will try TD.
Will changing the bank make difference down the road (like property tax increase)?
Ditto on both posts. Unless you have a coop (no Mtg Tax) then the rate will have to be much better to offset the additional closing costs. 🙁 BOO HSBC
as a general rule, hsbc doesnt assign mortgages. Adam Dahill was actually complaining about it at one point.
You have to ask the bank if they will allow you to “assign” the mortgage to a different bank. Some will do it for a small fee, but others will not allow it. If they will not allow it, then when you use a different bank to refinance (not your original bank) you will have to pay mortgage tax to NYC on the entire refinance amount (same as if you had sold the property). This can be substantial and will be approx 2% – 3% or the mortgage amount depending on the amount borrowed. Ex $500,000 mortgage the tax will be approx $10,000 in additional closing costs. So, if HSBC will not allow you to assign the mortgage to TD then you are pretty much stuck with HSBC unless the rate is good enough to offset the mortgage tax amount difference (and it sounds like it’s not).
See http://realestateqa.blogs.nytimes.com/2008/09/04/paying-mortgage-tax-on-a-home-refinancing/
for further explanation.