Refinancing Costs
I’m calling our bank regarding our refi – and while they’re optimistic they’e giving me early estimates of fees/costs that total a hair over $5,000. Just soliciting opinions – is this ballpark correct? Will I do better through a broker?
I’m calling our bank regarding our refi – and while they’re optimistic they’e giving me early estimates of fees/costs that total a hair over $5,000. Just soliciting opinions – is this ballpark correct? Will I do better through a broker?
I would suggest reading some of the articles on http://www.mortgagerates.net – good (unbiased!) info that can tell you what ballpark range is correct for your situation. Hope that helps 🙂
Hello, I am a broker and I am on with Citimortgage. We can do Harp loans on a coop. It will save you money, you will not have to pay Citi’s attorney to pull the stock and lease from them.
Closing costs normally run 5k-6k but can be lowered by taking a rate that is .125-.25 higher.
Feel free to call me to discuss the refinance.
Vanessa Thatcher
Atlantic Home Capital
631-687-3510 x106
lolly- Wells is weird with coops. They once wanted to deny a coop I had in Queens because they said that they only do Coops in New York City, I had to get the paper-pusher’s boss on the phone and explain that Queens was in NYC. I have had success with them at times but they are not my #1 coop bank.
Max cash to borrower on HARP or REFI Plus is $250 after closing costs.
To be eligible you must have been in the loan prior to 3/1/2009, Coops are acceptable as long as Fannie or Freddie currently own the loan.
Yes, you can do a HARP on a co-op with Citi. Our office has done many (I’m a mortgage broker) There are a number of qualifiers, first off being that either FreddieMac or Fannie Mae has to own your loan and it had to have been opened before a certain date. You can’t take cash out, only the bare mimumum to cover closing costs.
Can you do a HARP on a coop? Can I do it through Citi? I have been through this a few times & have to say going through a broker is a MUCH more pleasant experience, much more knowledgeable. Going with Citi now as that is where current is & tried to do with broker last year & was rejected (and out 1K) as the bank they chose (Wells Fargo) didnt understand coops. So maybe not so much more knowlegeable. But the Citi guy I am dealing with has no idea what is coming out of his mouth, and, is in some far-flung country…
Check the itemized list of fees from the GFE carefully. Mine came in with a similar figure, which almost discouraged me from proceeding. But the majority of the $5000 turned out to be interest payments for the period between the payoff of the old mortgage and the start of the new one. Actual fees ended up being less than $2000. As it happened, I basically got to “skip” 2 payments–paid off old mortgage in October and didn’t have to pay on new mortgage until December.
Looking at my GFE from a refi about a year ago, the appraisal fee, underwriting fee, application fee, flood certification, settlement/closing fee, title insurance fee, recording fee, assignment fee added up to about 5k and was pretty much how the final numbers worked out.
The banks typically know the math better than the borrower does, and whether you write checks for the fees, or as Adam says the bank pays them and charges you a higher rate (similar to paying discount points), or they increase the loan amount to cover the fees so it feels like you’re paying no closing costs, it all works out so the bank makes their money.
Having a good mortgage broker like Adam (or Universal mortgage which I used), who knows the available programs and does this every day to sort through the options for you can be very helpful.
HARP has nothing to do with the closing costs. It’s the Freddie Mac version of Fannie Mae’s Refi Plus program. Both programs are designed to allow home owners to refinance mortgages that are paid on time up to 125% of the appraised value. Although most lenders have restrictions that overlay the government product. Some lenders won’t do the full 125% some cut off at 105% or they will only do their loans to 125% which stinks if your current lender isn’t originating loans any longer such as Indy Mac bank, etc.. They are most likely giving you a slightly higher rate than market and paying the closing costs on your behalf.
5k is not bad for closing costs on a non coop NYC property.