Question by Matt: Mortgage refinancing advice?
We are considering a refinance at a sub-prime lending rate of 9.1% fixed, 50-year mortgage. I’m told that when working with mortgage companies it is a good idea to get a couple different good faith estimates to see if there are any added line item charges that shouldn’t be there. Here are some of what they propose to charge us for. Should we question any of them?
Loan origination fee
Appraisal fee
Credit report
Admin & Underwriting fee
Flood cert fee
Tax service fee
Closing/escrow fee
Title insurance
Endorsements
Gov Serv
Title doc prep
Recording fees
Reconveyance fee
Hazzard insurance premium
Taxes and assessment reserves
With so many added fees, how can you tell which are supposed to be there and which are padding the broker?
If it is pure profit, how does one avoid paying the listed charges – don’t all mortgage companies need to make some profit?
Best answer:
Answer by girlwhoknowsitstrue
The only required ones are:
Credit Report (and you can ask to see the exact bill so they don’t pad it)
floor cert
title insurance (ask to see the bill)
recording fees
hazard insurance
taxes and assessment reserves
everything else is pure profit for the mortgage company.
Give your answer to this question below!
If you are doing a sub-prime loan and getting a rate of 9.1%, sounds like you are lucky to even get an approval. The loan company is charging for their services. The fees the loan company is charging are the Origination fee and Admin & Underwriting fee. Everything else is 3rd party and neccessary for the transaction.
These fees look like they are in line. What matter here is not the type of fee, but how much it is. Depending on your loan amount, your total closing costs and settlement charges should be between $ 2,500.00 to $ 6,000.00. The latter being for a loan amount over $ 300,000.00. Remember though, these costs are added into the mortgage, but don’t let that stop you from getting the best deal possible. It is your equity that it will be eating up.
It also looks like you have some challenges with your credit. If you would like a second opinion, I would be more than happy to review your Good Faith Estimate for you and let you know if you are being overcharged. Furthermore, if you have other questions and you don’t feel comfortable asking the mortgage company you are dealing with, feel free to contact me at timothy.kazee@americanhm.com, or you can go to my website at http://www.yourohiomtg.com. You may be able to get a better rate. Just be very careful.
Good luck!!
It looks like these fees are ok. Most of these are charged to the mortgage company.
Matt
http://www.diversifiedlender.com/
http://www.minnesota-mortgage-rates.net/
Hi, I came across your question and could not help but respond! I noticed that you are looking refinance your property and was already given a quote from another institution. I agree completely with getting a second opinion on the matter. 9.1% fixed is an incredibly high rate for the market right now! I work with over 100 lenders nationwide and offer several programs that fit most situations. I would love to take a look at your situation and see what I can do for you! I offer fast, courteous service and will walk you through each step of the process. There is absolutely no obligation to you and if nothing else you will know exactly where you stand and what you qualify for. Please feel free to contact me Jcorreahq@yahoo.com or directly @ (813) 655-9826. I look forward to speaking with you!
The rate you are getting is really high! It is always good to get more than one quote. Most of the time your closing cost will always be a LOT higher with a broker. I work for Countrywide Home Loans. I would be more than happy to look over your Good Faith Estimate and see if we can bet them also I would be curious to see if I can get you a better rate. I hate to see people like your self robbed. You can reach me @ karrie_ramel@countrywide.com or at the office @ 770 619 2600