Good refinancing deal? Fair closing cost?

M

macinthebox_IHB

New member
Doing a refi. Home estimated to be around $380000 on Zillow. Loan balance is $320000.



Refinancing from 5.75% 30-year fixed to 4.25% 15-year fixed. No points.



Good Faith Estimate:



802 Loan Discount Points 0.000% $ 0.00

803 Appraisal Fee $ 350.00

804 Credit Report Fee $ 15.00

807 Preferred Lender Fee $ 515.00

810 Flood Certification $ 14.00

1101 Settlement or Closing Fee $ 450.00

1104 Endorsements $ 70.00

1106 Notary Fee $ 150.00

1108 Title Insurance $ 816.00

1201 Recording Fee $ 143.00



Total closing cost: $2523.00



Does the closing cost look fair? Seems like a good deal? Help from the pros is appreciated!
 
doesnt look bad to me. keep in mind you will have mortgage insurance.

also i have no used Zillow in years but unless it has drastically changed it is extremely inaccurate.
 
I think you mean that you will have mortgage insurance if the place doesn't appraise for enough. If you do have PMI and you haven't had it before, this could become a deal breaker IMO.
 
If your property is a condo, not a SFD, there is a .75 hit in fee. I don't believe that has been calculated in IF your home is a condo. Is this the original loan, or did you refi at one time to pull cash out? If it's not the original purchase loan it may be considered "cash out" even though you took cash out many a year ago.



First American Title (a company I refer my refi's to) has a "one fee" rate for title, escrow, notary, that in your case will be $1100. That can save you some $$$ off the bat.



I don't think the price quote is real. Most conforming 15 yr fixed deals today (10/06/09) are 4.25% for about .5 point for a reasonably locked time period and for a SFD refi.



Remember, Tuesday is Soylent Green Day.
 
Just to confirm Zillow's numbers, I would punch your address into Redfin and see if the other four comps they give you are in the same ballpark. Zillow's numbers have been running high lately, IMHO; they seem to be frequently fooled by failed foreclosure auctions, which usually record as a sale at the amount owed (which is less than the market value of the property). Zillow is supposed to throw those out, but lately it looks like they aren't in many cases, inflating their estimates of other properties nearby.
 
[quote author="Soylent Green Is People" date=1254887966]If your property is a condo, not a SFD, there is a .75 hit in fee. I don't believe that has been calculated in IF your home is a condo. Is this the original loan, or did you refi at one time to pull cash out? If it's not the original purchase loan it may be considered "cash out" even though you took cash out many a year ago.



First American Title (a company I refer my refi's to) has a "one fee" rate for title, escrow, notary, that in your case will be $1100. That can save you some $$$ off the bat.



I don't think the price quote is real. Most conforming 15 yr fixed deals today (10/06/09) are 4.25% for about .5 point for a reasonably locked time period and for a SFD refi.



Remember, Tuesday is Soylent Green Day.</blockquote>


My place is a small single family home, in Chino Hills, not Irvine. So I won't incur that .75 fee. The broker told me there is a Federal program where the PMI is waived for refinance for loans with less than 80% LTV. Current loan I have is an original loan; never did a cash out.



If people here say the closing cost is reasonable, I'll proceed with the refi, as it looks like mortgage rates are at historical low again for reasons I do not know.
 
[quote author="Geotpf" date=1254891170]Just to confirm Zillow's numbers, I would punch your address into Redfin and see if the other four comps they give you are in the same ballpark. Zillow's numbers have been running high lately, IMHO; they seem to be frequently fooled by failed foreclosure auctions, which usually record as a sale at the amount owed (which is less than the market value of the property). Zillow is supposed to throw those out, but lately it looks like they aren't in many cases, inflating their estimates of other properties nearby.</blockquote>


Yes, I do agree Zillow's number seems a bit high. I can put in some cash to bring my LTV lower if necessary. Just want to take advantage of the lower rate as this may be the last time it's this low.
 
[quote author="MacInThebox" date=1254885155]Doing a refi. Home estimated to be around $380000 on Zillow. Loan balance is $320000.



Refinancing from 5.75% 30-year fixed to 4.25% 15-year fixed. No points.



Good Faith Estimate:



802 Loan Discount Points 0.000% $ 0.00

803 Appraisal Fee $ 350.00

804 Credit Report Fee $ 15.00

807 Preferred Lender Fee $ 515.00

810 Flood Certification $ 14.00

1101 Settlement or Closing Fee $ 450.00

1104 Endorsements $ 70.00

1106 Notary Fee $ 150.00

1108 Title Insurance $ 816.00

1201 Recording Fee $ 143.00



Total closing cost: $2523.00







Does the closing cost look fair? Seems like a good deal? Help from the pros is appreciated!</blockquote>


Notary fee of $150 seems high.

What's the preferred Lender Fee?
 
[quote author="autox" date=1254898659][quote author="MacInThebox" date=1254885155]Doing a refi. Home estimated to be around $380000 on Zillow. Loan balance is $320000.



Refinancing from 5.75% 30-year fixed to 4.25% 15-year fixed. No points.



Good Faith Estimate:



802 Loan Discount Points 0.000% $ 0.00

803 Appraisal Fee $ 350.00

804 Credit Report Fee $ 15.00

807 Preferred Lender Fee $ 515.00

810 Flood Certification $ 14.00

1101 Settlement or Closing Fee $ 450.00

1104 Endorsements $ 70.00

1106 Notary Fee $ 150.00

1108 Title Insurance $ 816.00

1201 Recording Fee $ 143.00



Total closing cost: $2523.00







Does the closing cost look fair? Seems like a good deal? Help from the pros is appreciated!</blockquote>


Notary fee of $150 seems high.

What's the preferred Lender Fee?</blockquote>
Actually the recording fees look a little high. That notary fee is pretty standard, especially for a mobile notary. The preferred lender fee is a garbage broker fee (but in-line with what most brokers/lenders will charge).
 
[quote author="Adam Ginsberg" date=1254893582]Out of curiosity, where are you getting 4.25% fixed @ 15 years? That's a damn smoke'n rate.</blockquote>


I went to Zillow.com -> "Mortgage" tab -> Loan Request



I got a bunch of Quotes from brokers and maybe some lenders. You will be able to filter and sort all the quotes by different options. Zillow did a nice job developing this application. I submitted a request around the beginning of this year, and it was not nearly as good. I am quite impressed.



Obviously you need to have good credit to get the best rates. We'll see if we get the loan as advertised. Will keep you guys posted. I hope the rate does not increase tomorrow. I'll lock tomorrow if it stays the same.
 
[quote author="MacInThebox" date=1254893303][quote author="Soylent Green Is People" date=1254887966]If your property is a condo, not a SFD, there is a .75 hit in fee. I don't believe that has been calculated in IF your home is a condo. Is this the original loan, or did you refi at one time to pull cash out? If it's not the original purchase loan it may be considered "cash out" even though you took cash out many a year ago.



First American Title (a company I refer my refi's to) has a "one fee" rate for title, escrow, notary, that in your case will be $1100. That can save you some $$$ off the bat.



I don't think the price quote is real. Most conforming 15 yr fixed deals today (10/06/09) are 4.25% for about .5 point for a reasonably locked time period and for a SFD refi.



Remember, Tuesday is Soylent Green Day.</blockquote>


My place is a small single family home, in Chino Hills, not Irvine. So I won't incur that .75 fee. The broker told me there is a Federal program where the PMI is waived for refinance for loans with less than 80% LTV. Current loan I have is an original loan; never did a cash out.



If people here say the closing cost is reasonable, I'll proceed with the refi, as it looks like mortgage rates are at historical low again for reasons I do not know.</blockquote>


I think you can refi without requiring any new appraisal if it's Fannie Mae loan, that could save you $350.
 
[quote author="MacInThebox" date=1254885155]Doing a refi. Home estimated to be around $380000 on Zillow. Loan balance is $320000.



Refinancing from 5.75% 30-year fixed to 4.25% 15-year fixed. No points.



=======================

Good Faith Estimate:



802 Loan Discount Points 0.000% $ 0.00

803 Appraisal Fee $ 350.00

804 Credit Report Fee $ 15.00

807 Preferred Lender Fee $ 515.00

810 Flood Certification $ 14.00

1101 Settlement or Closing Fee $ 450.00

1104 Endorsements $ 70.00

1106 Notary Fee $ 150.00

1108 Title Insurance $ 816.00

1201 Recording Fee $ 143.00



Total closing cost: $2523.00



Does the closing cost look fair? Seems like a good deal? Help from the pros is appreciated!</blockquote>


For comparison, I ran your loan through aimloan.com's web site. They provide a good faith estimate without any personal information.



4.25%, no points loan for $320,000. House worth $380,000. No cash out.

Assume taxes of $3800/year.



Good Faith Estimate:



Mortgages to be paid with this loan $320,000.00





AimLoan.com Fees

Guaranteed Lender Fee $1,995.00

Total AimLoan.com Fees $1,995.00



Third Party Fees

Guaranteed Appraisal Fee $300.00

Guaranteed Closing Agent Fee $250.00

Guaranteed Title Insurance Fee $350.00

Total Third Party Fees $900.00





Government Fees

Recording Fee $65.00

Total Government Fees $65.00





Required Advances

Interest Due at Closing $566.67

Mortgage Insurance Premium $88.00

Insurance Escrow/Impound Deposit $633.33

Property Tax Escrow/Impound Deposit $1,266.67

Total Required Advances $2,554.67



Guaranteed Lender Rebate $0.00

Your New Loan Amount -$320,000.00



Estimated Cash Required at Closing $5,514.67

==================================================



It looks like aimloan saves you about $700 in 3rd party fees, but costs you an extra $1500 in the lender fee.
 
Because your home loan is likely owned by one of the Agencies (FNMA/FHLMC) you can refinance without PMI. Anyone can provide that loan for you. As most have noted, the non-lender fees are high, but it's not the lender's padding. They simply haven't shopped for services that well.



Zillow's quote system is terrible (IMHO). You put in X and you get 85 to 100+ responses from robot programs that are mostly noise compared to hard data Most of the lenders deliver the rate quoted - as long as you watch the lock periods and know more than the loan officer - The AIM quote is a good example. Had you spoken with someone they could have looked at the Making Home Affordable Program which avoids PMI. Because you got an Internet quote, AIM's terms look worse than they should because of the addition of PMI. The "robot" programs don't know how to quote around specific circumstances that will both make their quotes better and give you the consumer a better option. I've seen quotes through Zillow for $729k loan amounts for areas that you can't get that loan amount, plus A+ rate quotes from well rated companies given to F- borrowers based on either FICO or income. It's a tool that provides information that at this point is too thin to get an accurate quote.



My .02c



Soylent Green Is People
 
[quote author="Soylent Green Is People" date=1254966881]Because your home loan is likely owned by one of the Agencies (FNMA/FHLMC) you can refinance without PMI. Anyone can provide that loan for you. As most have noted, the non-lender fees are high, but it's not the lender's padding. They simply haven't shopped for services that well.



Zillow's quote system is terrible (IMHO). You put in X and you get 85 to 100+ responses from robot programs that are mostly noise compared to hard data Most of the lenders deliver the rate quoted - as long as you watch the lock periods and know more than the loan officer - The AIM quote is a good example. Had you spoken with someone they could have looked at the Making Home Affordable Program which avoids PMI. Because you got an Internet quote, AIM's terms look worse than they should because of the addition of PMI. The "robot" programs don't know how to quote around specific circumstances that will both make their quotes better and give you the consumer a better option. I've seen quotes through Zillow for $729k loan amounts for areas that you can't get that loan amount, plus A+ rate quotes from well rated companies given to F- borrowers based on either FICO or income. It's a tool that provides information that at this point is too thin to get an accurate quote.



My .02c



Soylent Green Is People</blockquote>


I started the loan process with the broker today. He told me he has locked the rate in, and the closing date would be 11/2. It looks like the best quotes from Zillow do not include PMI. For my situation, it does work well for me, since my refinance is pretty straight forward, at least at this point; it's not a jumbo, my credit is fine, my income level is good enough and can provide docs. I actually benefited from the government's Making Home Affordable Program in that I did not have to make my LTV 80% to avoid PMI, which I guess is a small welcome surprise. I think with Zillow, it's usefulness can vary by quite a bit depending on each person's situation.
 
[quote author="MacInThebox" date=1255008156][quote author="Soylent Green Is People" date=1254966881]Because your home loan is likely owned by one of the Agencies (FNMA/FHLMC) you can refinance without PMI. Anyone can provide that loan for you. As most have noted, the non-lender fees are high, but it's not the lender's padding. They simply haven't shopped for services that well.



Zillow's quote system is terrible (IMHO). You put in X and you get 85 to 100+ responses from robot programs that are mostly noise compared to hard data Most of the lenders deliver the rate quoted - as long as you watch the lock periods and know more than the loan officer - The AIM quote is a good example. Had you spoken with someone they could have looked at the Making Home Affordable Program which avoids PMI. Because you got an Internet quote, AIM's terms look worse than they should because of the addition of PMI. The "robot" programs don't know how to quote around specific circumstances that will both make their quotes better and give you the consumer a better option. I've seen quotes through Zillow for $729k loan amounts for areas that you can't get that loan amount, plus A+ rate quotes from well rated companies given to F- borrowers based on either FICO or income. It's a tool that provides information that at this point is too thin to get an accurate quote.



My .02c



Soylent Green Is People</blockquote>


I started the loan process with the broker today. He told me he has locked the rate in, and the closing date would be 11/2. It looks like the best quotes from Zillow do not include PMI. For my situation, it does work well for me, since my refinance is pretty straight forward, at least at this point; it's not a jumbo, my credit is fine, my income level is good enough and can provide docs. I actually benefited from the government's Making Home Affordable Program in that I did not have to make my LTV 80% to avoid PMI, which I guess is a small welcome surprise. I think with Zillow, it's usefulness can vary by quite a bit depending on each person's situation.</blockquote>


I'd post what you posted here in the advice->mortgage->refi forum at Zillow. Ask if the fees, etc. look appropriate and competitive. There are a few straight shooters that frequent the forums over there, and of course there is nothing wrong with hearing about competitive offers (although they're not supposed to be directly soliciting business in the forums IIRC). I don't know if they still fight like cats & dogs over there, but you would at least get more feedback. And maybe a bit of entertainment.
 
So I've completed the refi process. There was no big surprises as far as fees go, except that when I first applied for the refi, I did not include my wife's name on the application, because I was told when I bought the house, only my name was on the mortgage and deed (I wasn't married then), so the refi needs to be in the same manner due to some kind of special program I was taking advantage of?



Later I found out because I am married now, the deed needs to have my wife's name, but the mortgage will only be under my name... That seems a bit odd. Not sure if that makes a difference liability-wise legally...



All in all, the 15-year fixed @ 4.25% no points seems to be a good deal; no surprises. My LTV was actually a bit more than 90%, but because of a special government program, that wasn't an issue. The person I worked with was pretty good. If any of you are interested, send me a PM and I'll forward his contact info to you.
 
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