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Old 09-15-2009, 07:24 PM
 
Location: California
151 posts, read 246,466 times
Reputation: 246
Default No Fees Refinance Loan

Does anyone know of any NO FEE (points, fees, whatever) refinance loans?
I don't mind the higher rate, looking for 15 yr.
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Old 09-15-2009, 10:11 PM
 
Location: Niceville, FL
4,367 posts, read 7,708,574 times
Reputation: 2910
Try your local credit union if you can meet their loan-to-value ratio requirements. Ours is currently offering 4.675% for refinances if you can show 90% LTV no points and no fees on their end.(They'll let you roll appraisal, title insurance and tax into the new note as long as it doesn't push it over the 90% mark)
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Old 09-16-2009, 02:08 AM
 
Location: Laguna Niguel, CA
768 posts, read 2,580,182 times
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Any lender can offer you a no fee mortgage, they just give you a higher rate than if you paid the fees. Works the same at every single lender that exists today, no joke.

beachmouse, what you are being offered is just a "no lender fee" loan, which saves $700 or so... this is not the same as a "no fee" loan. A "no fee" loan is just that, no fees are charged to the borrower at all (or there is a lender credit in the same exact amount as the fees being charged to the borrower), no title insurance, no appraisal fee, no escrow fee, no underwriting, no processing, no recording... not just forgoing the lender fees.
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Old 09-16-2009, 05:55 AM
 
Location: Plano, Texas
1,672 posts, read 4,105,349 times
Reputation: 633
Quote:
Originally Posted by SoCalTwinkie View Post
Does anyone know of any NO FEE (points, fees, whatever) refinance loans?
I don't mind the higher rate, looking for 15 yr.
So, you would rather pay no fees to do the loan but pay a higher interest rate over the life of the loan? If you are keeping this home for less than 3 years, i agree. But if you are keeping this home for 10 to 15 years, the higher interest rate will cost you much more in the long run.

As other posters said, any lender or loan officer can offer a no fee or reduced fee refinance.
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Old 09-16-2009, 09:48 AM
 
Location: Niceville, FL
4,367 posts, read 7,708,574 times
Reputation: 2910
Quote:
Originally Posted by ShanetheMortgageMan View Post
beachmouse, what you are being offered is just a "no lender fee" loan, which saves $700 or so... this is not the same as a "no fee" loan. A "no fee" loan is just that, no fees are charged to the borrower at all (or there is a lender credit in the same exact amount as the fees being charged to the borrower), no title insurance, no appraisal fee, no escrow fee, no underwriting, no processing, no recording... not just forgoing the lender fees.
Florida hits you with a transaction tax of about 1.5% on the property and 1.5% on any loans. (and you pay that 1.5% again on a refinance loan). So normal down here is to have the seller pay all or half that tax at time of sale and it's common to roll the tax into the new mortgage at the time of a refinancing. No lender down here is going to pay your $2K-$10K in transaction taxes for you up front. (and if they claim they do, you end up paying far more than that over the course of a loan)

We didn't pay for new title insurance on our refi because it was the same lender as the original mortgage, and said mortgage was only two years old. But they don't charge an escrow, underwriting, or processing fee, and will even let you run a significant negative balance on the escrow account without it being an issue. (Happened to us a couple years running because of big increases in the price of homeowner's insurance down here) Standard loan rates are listed as with no points and no origination fee. Their application fee was about $300, and everything except about $10 for credit report charges is credited back to you at time of closing.

(edit) and today their 15 year rate is 4.5%
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Old 09-22-2009, 01:48 PM
 
Location: Laguna Niguel, CA
768 posts, read 2,580,182 times
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beachmouse, not saying you didn't get a great deal, it actually sounds like your deal is awesome, but just pointing out the differences in a "no lender fee" and "no fee" loan as people often get confused when things aren't clarified.
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Old 09-22-2009, 03:34 PM
 
Location: Sacramento, CA
32 posts, read 108,286 times
Reputation: 74
You did a great deal. Maybe the mortgage company is a green business or going green so they can offer less in junk fees
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Old 09-22-2009, 07:41 PM
 
Location: Niceville, FL
4,367 posts, read 7,708,574 times
Reputation: 2910
My credit union is picky- loans to members only within an 11 county area, high credit score required, no second homes or rental properties and they never did exotics. And they've got roots as a military credit union so they grew up competing with the much-loved USAA in terms of services and customer service. So they're generally pretty competitive in terms of giving members good terms with a minimum of messing around.

They also keep 98-99% of their mortgages instead of reselling them, and have had to take back a total of two properties when there have been thousands of foreclosures in their 11 county service area.
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