please HELP, am I being screwed?? (loan officer, escrow, credit, fees)

[chilling23]

OK I need some expert love here folks so here is the skinny.

I want to refinance my VA loan using streamline VA loan (IRRRL)

I was quoted from a loan officer at 6.0 percent and no points.

I currently owe 113000 with 6.75 interest fixed 30 year rate (24 years left)

loan officer has final paperwork ready and wants me to close in 3 days. I havent received GFE yet and he said he cant send me final paperwork until its time to close.

Quoted me though with a new 121500 loan. IE 7500 dollars in closing costs/lender fees.

Am I being screwed? kinda feels like it. I am having a hard time believing a streamline VA loan final costs/fees would be 7500 (includes 800 dollar escrow account too). WHat are they typically, ie high/lows??

Thanks

[ChipL]

Can't send you a GFE? No, no, no....

He BETTER send you a GFE. You are supposed to received a GFE and TIL (Truth-in-Lending..you know, the one that mentions APR) within 3 days of application. This isn't optional, this is law. You may want to remind of him of that. Does this mean he has something to hide, like high and excessive fees? Maybe, but that's for you to know by reviewing the GFE. $7500 sounds like a lot in closing costs, but some states have high closing costs and some don't. Not knowing your state makes it hard to say.

Plus another unknown are your escrows. They can run high depending upon when your insurance and taxes are due.

Bottom line, get your GFE and TIL or look elsewhere.

[renriq02]

bottomline is go elsewhere now...dont even wait for the GFE.

RESPA requires disclosures within 3days of a signed 1003 application.

I wouldnt recommend refinancing with VA since this is your 2nd time.

Funding fee for first time users is around 2.2%
Second time it's 3.3%

I would refinance with FHA and pay 1.5%.....you'll get the same rates/fees

[jeffselan]

Yes, you are getting screwed. Listen to the top two posters.

[antredd]

Originally Posted by chilling23

OK I need some expert love here folks so here is the skinny.

I want to refinance my VA loan using streamline VA loan (IRRRL)

I was quoted from a loan officer at 6.0 percent and no points.

I currently owe 113000 with 6.75 interest fixed 30 year rate (24 years left)

loan officer has final paperwork ready and wants me to close in 3 days. I havent received GFE yet and he said he cant send me final paperwork until its time to close.

Quoted me though with a new 121500 loan. IE 7500 dollars in closing costs/lender fees.

Am I being screwed? kinda feels like it. I am having a hard time believing a streamline VA loan final costs/fees would be 7500 (includes 800 dollar escrow account too). WHat are they typically, ie high/lows??

Thanks

Before you sign your life away, look at the SETTLEMENT STATEMENT that lists all of your actual costs for getting that loan. You can request this document before you actually sign your final docs. The escrow company or the notary should be able to at least email/fax you a copy of that. If anything looks fishy, tell the loan officer to kiss off.

[malamute]

Originally Posted by chilling23

OK I need some expert love here folks so here is the skinny.

I want to refinance my VA loan using streamline VA loan (IRRRL)

I was quoted from a loan officer at 6.0 percent and no points.

I currently owe 113000 with 6.75 interest fixed 30 year rate (24 years left)

loan officer has final paperwork ready and wants me to close in 3 days. I havent received GFE yet and he said he cant send me final paperwork until its time to close.

Quoted me though with a new 121500 loan. IE 7500 dollars in closing costs/lender fees.

Am I being screwed? kinda feels like it. I am having a hard time believing a streamline VA loan final costs/fees would be 7500 (includes 800 dollar escrow account too). WHat are they typically, ie high/lows??

Thanks

Why refinance? If you have $7500 sitting around just use it to pay down your principle or use it to make increased payments -- you can cut down the years you have to pay significantly and lower total interest payments.

[ChipL]

Originally Posted by malamute

Why refinance? If you have $7500 sitting around just use it to pay down your principle or use it to make increased payments -- you can cut down the years you have to pay significantly and lower total interest payments.

She didn't mention that she had to cover the expenses out-of-pocket. Normally closing costs are rolled into a refinance.

[TimtheGuy]

Originally Posted by chilling23

OK I need some expert love here folks so here is the skinny.

I want to refinance my VA loan using streamline VA loan (IRRRL)

I was quoted from a loan officer at 6.0 percent and no points.

I currently owe 113000 with 6.75 interest fixed 30 year rate (24 years left)

loan officer has final paperwork ready and wants me to close in 3 days. I havent received GFE yet and he said he cant send me final paperwork until its time to close.

Quoted me though with a new 121500 loan. IE 7500 dollars in closing costs/lender fees.

Am I being screwed? kinda feels like it. I am having a hard time believing a streamline VA loan final costs/fees would be 7500 (includes 800 dollar escrow account too). WHat are they typically, ie high/lows??

Thanks

Yes, you are being screwed IMO. How many points (origination and/or discount points) are you paying. Streamline should require no appraisal and are reltively easy to do.

Based on today's pricing you should be able to get 6.0% with ZERO to 1/2 point total. Your costs should be under $3k plus escrows (could be slightly higher in a few states, but still less than $4k for sure).

It would not make sense for you to pay $7k in costs to save .75% in rate on a loan amount of $120k. No matter what kind of loan it is.

[Baby Bear]

chilling23, you need to ditch that lender... I have never heard of that much in costs on a loan. The lender is totally out of federal compliance, by law a Good Faith Estimate as well as all other federal and state mortgage disclosures are required from when you first talk to the person by phone and provide a lender with any personal information... i.e., social security number, employment, income, assets, or any other type of personal info. When did you make loan application with the lender either by mail or talking on the phone, or email? I can speak from having done compliance audits this company is out of compliance.

[pghquest]

Originally Posted by chilling23

OK I need some expert love here folks so here is the skinny.

I want to refinance my VA loan using streamline VA loan (IRRRL)

I was quoted from a loan officer at 6.0 percent and no points.

I currently owe 113000 with 6.75 interest fixed 30 year rate (24 years left)

loan officer has final paperwork ready and wants me to close in 3 days. I havent received GFE yet and he said he cant send me final paperwork until its time to close.

Quoted me though with a new 121500 loan. IE 7500 dollars in closing costs/lender fees.

Am I being screwed? kinda feels like it. I am having a hard time believing a streamline VA loan final costs/fees would be 7500 (includes 800 dollar escrow account too). WHat are they typically, ie high/lows??

Thanks

Not sure what you did here, but we went and got a home equity line of credit from our bank.. (pncbank.com) there was $0 closing costs involved..