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Almost 5k in junk fees? What a guy you are Joel...with buddies like you who
need enemy's. Seriously your leads most be terrific to get away with
charging that much on a 195k loan amount. Where I work that kind of GFE sent
to the customer would work MAYBE 1 out of 15 times...
"Joel Britt" <joelbritt@wowway.com> wrote in message
news:R-ednQNCQK4lSFnfRVn-hw@wideopenwest.com...
> Lets just say your "friend" is not doing you any extreme best-buddy favors.
> For that loan amount, I'd charge about $7000 in fees as well. Here
> would be the breakdown:
>
> Approx. $1200 - title fees
> Approx. $650 - lenders fee - covers underwriting, flood cert, etc.
> Approx $300 - appraisal fee
> Approx $750 - pack - gets paid to the broker before commissions on every
> loan
> Approx $2000 - loan origination fee
> Approx $2000 - broker fee
>
> You have to remember, even though he is your friend, it is still a
> business and there are costs to doing business. His broker may require
> him to charge a minimum based on loan amount, etc. I just refied my
> parents and still charged them $2850 on a $110k loan/ Nobody - including
> you - works for free.
>
> Bottom line is you are going to save about $275k by refinancing over the
> life of the loan for a cost of just shy of $10k. If your friend met you
> on the street and said give me $10k, and I'll give you $275k in return -
> would you do it? You probably would.
>
>
> "AJ M." <jerseycat10@nospam.yahoo.com> wrote in message
> news:vK6dnStjr8I-HVnfRVn-gQ@comcast.com...
>> Hello everyone. I'm interested in refinancing my home. I've a 30
>> year
>> fixed-rate mortgage at 6.00%. My PITI payment is $1717.00. The initial
>> loan value was $191,700. After 1.5 years, I owe ~ $188,000. I'm
>> interested in refinancing down to 20 years, for the sole reason of
>> chopping
>> the 8.5 years of my mortgage. I lender friend of mine says that I can
>> get a
>> 20 year note at 5.125 from him. He says his company can only do that by
>> charging me 1.5 points. All in all, he gives me a high estimate of 7000
>> in
>> closing costs, which would be rolled into my new note. So my new note
>> would
>> be for 195,000, at 5.125%, for 20 years. My principal and interest alone
>> would go from 1150 a month to 1300 a month, however, I'd drop PMI by
>> reapprasing, so my monthly payment would only grow by ~ $50.
>>
>> Does this all sounds reasonable to everyone? The only thing that sticks
>> out
>> to me is the $7000 closing costs. It seems high, even including the 1.5
>> points.
>>
>> Thanks.
>>
>>
>
>
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Re: Refinancing Question
