If you are going to refi, what are normal broker fees?

[California]

ETA: Shoot! Meant to post this in the lounge! Well, I *am* looking for the best bargain on a loan, LOL!

With all the discussion on here regarding refinancing, thought some of you might have some insight into what to look for/look out for with a broker and what the normal fees are. Is this something to shop around or if you get a good recommendation for someone do you just go with them? I hate feeling so darn ignorant on such a big financial deal! Think of all the discussion we do on here about different toys :-)! We are researching bargain hunters!

[mum-to-be]

We recently refinanced our rental property. Because we don't live in it, we didn't get as great a deal. We just went with the same lender we already had since it saved us a lot of money - they didn't have to do appraisals (not sure what else, DH handled it all).

[ckso]

You definitely should shop around for the best rates and fees. I've refinanced twice and both times did it with no points no fees. Basically the broker covers the cost of the refinance and she was able to give me one of the best rates I can find myself. So it's a no brainer for me to refinance whenever the rates drops.

[happymomma]

We just closed on another refinance. We did it with no cost closing for 15 year fixed at 2.875%. The nice thing is that we didn't have to pay for anything including the appraisal. Definitely check around and see.

[emily_gracesmama]

I'm re-fi-ing again for free, they are covering all costs so rate will be 3.625 vs. 3.5% w/ guaranteedrate.com. I used them last year at no cost and everything went well. For no cost to me, I have no issues doing a a re-fi and just keep paying what I was paying, it'll save $ over the life of it. Last year the loan was sold to usbank who doesn't do biweekly pulls at all so I'm hoping to get a new company that'll do that for free like we had before.

[California]

Happymama, how did you find that low if an interest rate? That is fantastic!

[hillview]

if you are in california, my broker lives there (she was from Boston area when we started using her) she'd be happy to provide you with a quote. PM me if interested.

[Mommy_Mea]

We are in the process of our second no cost refi. The first time we used a local bank, this time we are using Amerisave.com. We are getting a 30-year fixed at 3.625%. Rates have dropped a little, and yesterday they had a no cost 30-year at 3.5%. The 15-year was around 2.75% to 2.825%.

[dukie41181]

There are so many loan programs right now and so much depends on your current loan. My husband works in the mortgage industry (and is a good, honest guy!) so I know a lot more about it than laymen. I would definitely go with someone you can trust because there are so many tricky practices even within the current market. For example, my husband focuses rather exclusively on FHA streamline loans for one of the largest lenders in the country and their loans are no cost, no appraisal. He talks to clients all day long who are quoted fees $2000-$3000 for the identical loan when he is doing them at no cost...FREE.

[indigo99]

There are so many loan programs right now and so much depends on your current loan. My husband works in the mortgage industry (and is a good, honest guy!) so I know a lot more about it than laymen. I would definitely go with someone you can trust because there are so many tricky practices even within the current market. For example, my husband focuses rather exclusively on FHA streamline loans for one of the largest lenders in the country and their loans are no cost, no appraisal. He talks to clients all day long who are quoted fees $2000-$3000 for the identical loan when he is doing them at no cost...FREE.

OK. So can you tell me how to do a free refinance on a 30 year fixed? My husband doesn't believe that it's possible (without dealing with some shady brokers who string you along after you've paid fees etc), but I told him I'd look into it. I'm in TN. We refinanced last year to 4.125% but would do it again to save half a point.

[niccig]

if you are in california, my broker lives there (she was from Boston area when we started using her) she'd be happy to provide you with a quote. PM me if interested.

I'm pming you too

[ckso]

I'm in southern ca and can refer you to a broker I've used for no points no fees refinancing.

Thanks for posting op. I refi last year at 4%. I probably should do it again if the rates are around 3.5

[dukie41181]

OK. So can you tell me how to do a free refinance on a 30 year fixed? My husband doesn't believe that it's possible (without dealing with some shady brokers who string you along after you've paid fees etc), but I told him I'd look into it. I'm in TN. We refinanced last year to 4.125% but would do it again to save half a point.

I just asked my husband and he says that it depends on whether you have a conventional loan or an FHA loan. For conventional, he said that the free refis that are offered are slightly above current market and thats how they're totally free. Because of that, he said you'd have a difficult time getting a half point less than 4.125% (so 3.625%). He also said that most lenders are so swamped with the lower rates right now that they aren't offering that rate. He said you may be able to get it from a small group of brokers (don't know how trustworthy or reliable they will be) or some small, local credit unions. If you have an FHA loan, thats a totally different story. I sure hope I've explained it as well as he explained it to me but I'm afraid I haven't.

[indigo99]

I just asked my husband ...

thanks. It is conventional so basically I shouldn't bother trying? I know DH isn't interested in paying thousands of dollars to refinance again right now. When I compared rates before, the credit unions had the highest rates around.

[Mommy_Mea]

I just asked my husband and he says that it depends on whether you have a conventional loan or an FHA loan. For conventional, he said that the free refis that are offered are slightly above current market and thats how they're totally free. Because of that, he said you'd have a difficult time getting a half point less than 4.125% (so 3.625%). He also said that most lenders are so swamped with the lower rates right now that they aren't offering that rate. He said you may be able to get it from a small group of brokers (don't know how trustworthy or reliable they will be) or some small, local credit unions. If you have an FHA loan, thats a totally different story. I sure hope I've explained it as well as he explained it to me but I'm afraid I haven't.


thanks. It is conventional so basically I shouldn't bother trying? I know DH isn't interested in paying thousands of dollars to refinance again right now. When I compared rates before, the credit unions had the highest rates around.

I am currently refinancing a conventional 30-year fixed mortgage to 3.625% and rates have dropped since we locked, so I don't see any reason why you shouldn't be able to refinance. Unless in certain states it is different? Go check Amerisave.com to see what they quote you. Closing may take longer with being so swamped (our loan has been with underwriting twice as long as normal), but I can't imagine they would turn away business!

There is a good thread on Fatwallet talking about refi rates with reputable lenders (which is how I felt comfortable with Amerisave):

http://www.fatwallet.com/forums/finance/788032/?start=0

[indigo99]

There is a good thread on Fatwallet talking about refi rates with reputable lenders (which is how I felt comfortable with Amerisave):


Sorry to pp for a bit of a hijack, and I do hope that everything goes smoothly with your refinance. I just don't trust Amerisave.

It isn't really fair of me, but I believe negative reviews more than positive ones on things like this, and there are WAY too many reviews online that say to stay away from them. Apparently they make you pay for a non-refundable appraisal up front, and then lots of the loans are never approved or drag on for months and months.

consumeraffairs was one site I found with negative reviews. I'm always suspicious when there are tons of 5 star or 1 star and not so many in the middle. I think that many real ppl will give 4/5 stars even if they're happy. yelp also has suspect positive reviews from ppl with only the one review.

[ckso]

I just asked my broker and she said the lowest she can offer is 3.5% with no fees. Course that's assuming ideal situation like good credit, equity, etc

So agree that I'd be surprise they're turning away business. You just have to lock it in and it'll take much longer yo close. But since it's a refi and not a purchase, the addl few weeks it takes to close doesn't matter to me