Need recommendation for no cost refinance mortgage loan (insurance, home loan, interest rate)

[Nadjalou]

I'm planning to refinance to take advantage of current low rates and don't plan to remain in my home for more than a couple more years so I don't want to pay much (if anything) in closing costs. Amerisave posts their rates by how much you want to pay towards closing costs (the lower the rate, the more closing costs and vice-versa). Anyone know of other lenders who do something similar, or who can offer a great rate for a 15 or 20 yr fixed loan with no (or low) closing costs? I like the transparency that Amerisave provides, but I'm not sure I can get the best rate with them.

[Thinking-man]

Originally Posted by Nadjalou

I'm planning to refinance to take advantage of current low rates and don't plan to remain in my home for more than a couple more years so I don't want to pay much (if anything) in closing costs. Amerisave posts their rates by how much you want to pay towards closing costs (the lower the rate, the more closing costs and vice-versa). Anyone know of other lenders who do something similar, or who can offer a great rate for a 15 or 20 yr fixed loan with no (or low) closing costs? I like the transparency that Amerisave provides, but I'm not sure I can get the best rate with them.

i don't know a 'site' like that but my lender tells me that information when i ask.
currently, i'm set to close on a 10 year fixed loan at 3.25% with 3800 in credits (1.45 points), and closing costs of about 3000....so i'll be making about 800 on the refi.

he said the 15 year would have the same rate, but closing costs wouldn't come out free like the 10 year loan i mentioned above.

[dad2jules]

Originally Posted by Nadjalou

I'm planning to refinance to take advantage of current low rates and don't plan to remain in my home for more than a couple more years so I don't want to pay much (if anything) in closing costs. Amerisave posts their rates by how much you want to pay towards closing costs (the lower the rate, the more closing costs and vice-versa). Anyone know of other lenders who do something similar, or who can offer a great rate for a 15 or 20 yr fixed loan with no (or low) closing costs? I like the transparency that Amerisave provides, but I'm not sure I can get the best rate with them.

Every lender/ broker has the same options- its how the rate market works. Lower rate= higher fees, higher rate = lower fees.
For example and no these are not real rates but the fees between them are:
7.0% you pay 1 pont and closing costs
7.125% you pay .5 point and closing costs
7.25% you pay no points and just closing costs
7.375% you get a .5% credit towards closing costs
7.5% you get a 1% credit towards closing costs

Laws now state that you must give a client at least 3 of these options so you should be able to anyone- Amerisave is not special in this area.

[Modification Specialist]

Originally Posted by Nadjalou

I'm planning to refinance to take advantage of current low rates and don't plan to remain in my home for more than a couple more years so I don't want to pay much (if anything) in closing costs. Amerisave posts their rates by how much you want to pay towards closing costs (the lower the rate, the more closing costs and vice-versa). Anyone know of other lenders who do something similar, or who can offer a great rate for a 15 or 20 yr fixed loan with no (or low) closing costs? I like the transparency that Amerisave provides, but I'm not sure I can get the best rate with them.

I am a little offended/perturbed when someone says they want a no cost loan. It tells me they know very little about financing. There is a lot of work between the initial credit check to closing. Needless to say costs of the appraisal, title checks, attorney, escrows, taxes and title insurance, all add up. There is no such thing as a "No Closing Cost Loan", because it is a secured loan.

I remember one closing from Hell involving a retired man that challenged every fee. It took over eight hours, going over every line in the closing documentation, then over every number on the HUD. He started to re-asking the same questions, finally made another copy of the documents, and crossed out each paragraph as it was explained.

Read a story about a family challenging every fee at their closing. They refused to pay for title insurance. Years go by and it was discovered a grandson of an Indian chief held claim to the land the home was built on. Because that family was too cheap, they lost their home.

A home is probably the biggest investment one does in their lifetime. Point by going to cheap, your jeopardizing the investment.

By going with the "So-called lender offering the best rates or no closing costs", there is a good chance major problems developing later, due to something wasn't done correctly or a short-cut, or the lender doesn't have the (human) resources to handle the loan correctly.

When a new loan is originated with a broker or small lender, the loan is sold before the ink is dry on the loan documents. A borrower has no control over when or who their loan gets sold to. A have personally witness the results of banks messing up on loan documentation, not recording - creating missed payments, not paying escrows. I hear this similar complaints when speaking to home owners facing foreclosure.....

**** Alert...... Regarding Amerisave - they are on "multiple scam" listings ****

see their name on this list - see link Amerisave

There are no such thing as no-closing cost loans; either the fees are rolled into the interest rate and paid at closing. Being that your looking for a short term loan, do an ARM for the lowest possible rate. Seeing 15yr at 3.125% to 3.25%. Theses rates will by around this range till mid April when people start spreading the rumor the rates are going up.

It is truely amazing and predictable - in May, its like everyone's is in a panic - the rates, the rates are going up... Then on June 15th, the Fed meets and they might adjust it .125%, 0.5% or not do anything. Being its an election year, the economy is show signs of rebounding, in my opinion the rates are going to be low till after the next presidential election. (Nov 15th).

Two words of advice for you -

First - forget refinancing to another lender, instead contact you existing leader and ask for a stream-line refinance. No title charges, no escrow set up, hardly any closing costs. I have personally done two myself, last time the total fees on everything was $900 including the appraisal.

Secondly - with mortgages being front-loaded toward interest, banks make a fortune even in the first few years of almost any home loan. For their part, borrowers seem stuck in a never-ending cycle of paying mountains of interest, in exchange for living the American Dream. There is a way around this, however, even though few home buyers choose this path.

On your end split up your payments to be debited out of your checking account every two weeks. A 30yr mortgage, the term is reduced 7.5yrs. On a 15 year term it knocks 2.5 years off term. It lowers your net effective interest rate 2%. The best thing is your are reported as being more responsible and your credit goes "Way" up. It doesn't take a rocket scientist to understand, the higher your credit score, then cheaper it is to live.

If you are truly anal about trying about reducing the amount of interest being charged on your loan, pay more towards the principle. Ultimately you could even split up your payments into weekly installments going out of your checking account. Banks do not want you to do that because they make no money. Imagine a 30 year loan to be paid off in under 10 years.

See Link - What if I Pay More? Calculator - LendersMark.org



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[Modification Specialist]

Originally Posted by dad2jules

Every lender/ broker has the same options- its how the rate market works. Lower rate= higher fees, higher rate = lower fees.
For example and no these are not real rates but the fees between them are:
7.0% you pay 1 pont and closing costs
7.125% you pay .5 point and closing costs
7.25% you pay no points and just closing costs
7.375% you get a .5% credit towards closing costs
7.5% you get a 1% credit towards closing costs

Laws now state that you must give a client at least 3 of these options so you should be able to anyone- Amerisave is not special in this area.

Hey Dad2jules -

7% now days?.... Are you trying to "Bang him on the back-end" with the YSP.....

Just punning you, - good reference...


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[rjrcm]

Originally Posted by Modification Specialist

I am a little offended/perturbed when someone says they want a no cost loan. It tells me they know very little about financing. There is a lot of work between the initial credit check to closing. Needless to say costs of the appraisal, title checks, attorney, escrows, taxes and title insurance, all add up. There is no such thing as a "No Closing Cost Loan", because it is a secured loan....

Why offended? It's all a trade-off as discussed in the other posts. You either get a lower rate and directly pay more of the costs yourself, or take a higher rate and get a credit from the lender to cover costs (you are financing the costs in the loan). I think the OP realizes that there are actually costs involved, it's just a matter of how you pay them.

If someone actually thinks they are not paying the costs one way or another, then they do need some guidance .

[Nadjalou]

Thanks for the responses. Clark Howard (Clark Howard: Save More, Spend Less and Avoid Rip-offs | www.clarkhoward.com) is a financial guru and has recommended no cost refinancing when you don't plan to be in the home more than a few more years. And I understand that the rate is a little higher than the current market rate. If it is at least .5 points lower than what I'm paying then I'll still save money I think. Obviously if I was planning to be here for another 10 yrs or more then it would be better to get the lowest rate possible and pay fees. And I've actually refinanced through Amerisave before and it was a good experience but I've seen lower rates advertised with no fees than what they have posted online so I'm seeking other options.