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We are currently refinancing and I have a few questions. With everything going on in the market I am unsure about who to trust. We were offered on interest rate of 5.75%, no points, for 30 year fixed in NJ. Our fees run about $2,000. To lock in we were asked to send in a check of $750 w/ 2 days of signing our the agreemtn. When can we actually lock in? My understanding is right now we are guaruntedd 5.75 and can lock in w/in 10 days of closing...what does that mean? Will he tell me if there is a better rate, or do I have to look...how would I know? Also, we are taking out and extra 10k for debt purposed...he tried to get us to take out more cash...is that shady?
thanks for the quick reply.
Appraisal fee $350...paid to appraiser
Application fee $850 (this must be padded!)
Closing or Escrow Fee $300
Title Insurance $599
Recording Fee $300
Items Required by Lender to be paid in Advance $373.75 ( interest for 9 days)
you are getting a below market rate but I don't see any discount points so they are probably doing that to lock you in the deal. They are going to charge you a lot more at closing unless this is a police or firefighters loan I don't see this happening. I usually don't take any fees upfront but if I have special pricing though just say citi then there is something called pull through. It is the % of loans locked that fund. If it's below a certain number i lose the special price I get for the volume I do but that's only like $200
Sorry to be dense...but if you have time would you mind explaining that to me in another way. I am not understanding if I am getting ripped off or not. Should the $750 be on the HUD? No points, and this is not a police or firefighters loan. How will I know if I can lock? Thank you for your time...you are very informative.
I would suggest that you not pay the 750 to lock your loan. what if the loan doesnt close, you lose that money. I have never charged a client a fee to lock a rate, and all fees must be disclosed on the hud.
You are supposed to sign a form to lock the rate but it usually doesn't take that long to lock a loan. Don't think your broker is being honest. they usually wait until the day before the closing and slam you with fees. You can have another loan in process somewhere else and not close but I wouldn't lock in a rate that doesn't exist unless you are being charged a point or origination fee. my guess would be 1.5% and that just a good deal not a really sweet one...
We are currently refinancing and I have a few questions. With everything going on in the market I am unsure about who to trust. We were offered on interest rate of 5.75%, no points, for 30 year fixed in NJ. Our fees run about $2,000. To lock in we were asked to send in a check of $750 w/ 2 days of signing our the agreemtn. When can we actually lock in? My understanding is right now we are guaruntedd 5.75 and can lock in w/in 10 days of closing...what does that mean? Will he tell me if there is a better rate, or do I have to look...how would I know? Also, we are taking out and extra 10k for debt purposed...he tried to get us to take out more cash...is that shady?
Thanks!
Brenna
and he wants you to take out more cash so he can hit you with fees and he will make your money(percentage)
Actually we did sign an interest rate lock in agreement.
when did you sign it? you have a good deal but I still wouldn't pay any upfront fees expect for appraisal. in a situation like this I would call the title company and see if the client didn't have any other loans going. I would then lock the loan and close in a little over a week. if rates stay the same you should probably get somebody to do the loan and waive lender fees or if they go down you can get a lower rate and no lender fees
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