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Question about home refi
Posted on 5/18/20 at 12:56 pm
Posted on 5/18/20 at 12:56 pm
We've had our current mortgage with a small mortgage company in New Jersey for years.
They recently called me and left a few voice mails and emails. They claim they want to me to refi but they'll pay any of the fees/costs.
What's the catch here? What's in it for them?
Our current rate is 3.875% so it probably wouldn't save us much money.
I guess I'm just typically skeptical of people pushing me to do something like this when there doesn't seem to be any reason not to.
Below is part of an email they recently sent me.
They recently called me and left a few voice mails and emails. They claim they want to me to refi but they'll pay any of the fees/costs.
What's the catch here? What's in it for them?
Our current rate is 3.875% so it probably wouldn't save us much money.
I guess I'm just typically skeptical of people pushing me to do something like this when there doesn't seem to be any reason not to.
Below is part of an email they recently sent me.
quote:
Based on market rates and your positive payment history we’d like to offer to reduce your interest rate.
You’d also skip a mortgage payment after closing, which is a very nice added benefit to this program.
You can choose to keep your remaining term the same, or reset it to 30 years for more monthly savings.
Now, this is not like a typical refinance; there are no lender or title fees, no credit check, no appraisal, and no income or asset verification.
6
Posted on 5/18/20 at 1:02 pm to fallguy_1978
quote:
there are no lender or title fees, no credit check, no appraisal, and no income or asset verification.
Ya right. Waiving some fees and appraisal is happening now, but no credit check or income verification? Sounds like a scam.
This post was edited on 5/18/20 at 1:03 pm
Posted on 5/18/20 at 1:04 pm to fallguy_1978
What was the original term and how many years do you have left? They may be banking on people having a tough time economically and will get you to refi back to 30 years.
I did a refi with my same mortgage company that we closed with last July. They gave me credit on all of the closing costs so it was essentially a no cost refi. I went from 4% to 3.25%.
Doesn't hurt to talk to them and see what it is all about.
I did a refi with my same mortgage company that we closed with last July. They gave me credit on all of the closing costs so it was essentially a no cost refi. I went from 4% to 3.25%.
Doesn't hurt to talk to them and see what it is all about.
Posted on 5/18/20 at 1:04 pm to fallguy_1978
quote:
Now, this is not like a typical refinance; there are no lender or title fees
Might just be repacking their fees into a higher interest rate then what you could get if you went the conventional method.
I would not be under delusion, the closing costs are either being tacked on to the loan amount or rolled into a higher rate
This post was edited on 5/18/20 at 1:05 pm
Posted on 5/18/20 at 1:04 pm to fallguy_1978
Maybe they are trying to keep your business since there are a lot of refis going on
Posted on 5/18/20 at 2:22 pm to fallguy_1978
1) there shouldn't be any title fees if you are staying with the same company. They are not required to refile a security deed at the courthouse. Edit to add: this is for georgia security deeds.
2) there are streamline refinances that don't need anything. VA and FHA have a streamline process. Some others may be jumping on the bandwagon (assuming that you are not VA ot FHA right now).
3) they are making origination and processing fees despite you not having to cover those.
If it is better for you, it is better for you.
Let me know how it works out.
2) there are streamline refinances that don't need anything. VA and FHA have a streamline process. Some others may be jumping on the bandwagon (assuming that you are not VA ot FHA right now).
3) they are making origination and processing fees despite you not having to cover those.
If it is better for you, it is better for you.
Let me know how it works out.
This post was edited on 5/18/20 at 2:24 pm
Posted on 5/18/20 at 11:03 pm to fallguy_1978
I was with Freedom Mortgage on my previous place. After 2yrs they contacted me and asked if I wanted to refi. I read and re-read those docs over and over looking for the catch.
I lowered my rate by 1.5%.
Easiest transaction ever.
It cost me NOTHING out of pocket. No closing. Nothing rolled into the principal. Nothing. Initial paperwork done via DocuSign and they sent a notary to my office to sign the closing docs. Knocked like $300 off my note.
I lowered my rate by 1.5%.
Easiest transaction ever.
It cost me NOTHING out of pocket. No closing. Nothing rolled into the principal. Nothing. Initial paperwork done via DocuSign and they sent a notary to my office to sign the closing docs. Knocked like $300 off my note.
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