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Old 03-27-2012, 02:12 PM
 
2 posts, read 5,749 times
Reputation: 10

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I bought my home almost two years ago for $205,000 with a 5% thru VA in Texas, and my monthly payments were $1520 which included escrow and insurance. Now I just refinance down to 3.75% thru VA, rolled the closing costs into the loan, about $3200. Now my monthly payments are $1455, it only cut my payments by $65. They told me this before closing and I questioned why so less and they said because I was using my VA Loan in Texas. Then not even after two to three weeks after closing they sold my policy to another mortgage company. I had a friend who used them shortly after I did and they cut his paymentws by $450, he also used VA and almost the same percentage.
So, was I tricked? And if so, what can I do about it, I already closed?

Thanks!
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Old 03-27-2012, 03:02 PM
 
Location: Austin
7,238 posts, read 20,567,487 times
Reputation: 9986
You should have questioned things prior to your 3 day right of recession. There is nothing you can do now. Even if you feel duped and lied to, again, you had 3 days after signing everything. You also had time from your initial good faith estimate to when you closed. Why are you just now looking further into it? Costly mistake to chalk it up.
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Old 03-27-2012, 03:14 PM
 
2 posts, read 5,749 times
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I was okay..alittle, until my friend had his done. And when I heard how much he saved then I wondered. So, was I taken?
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Old 03-27-2012, 04:40 PM
 
4,919 posts, read 21,904,414 times
Reputation: 6282
Quote:
Originally Posted by viper96 View Post
I had a friend who used them shortly after I did and they cut his paymentws by $450, he also used VA and almost the same percentage.
Did you have actual paperwork to compare your friends loan to your loan? Never assume someone is telling you the facts until you see it cause in the world of real estate and mortages, seldom is everyone really talking apples to apples.
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Old 03-27-2012, 04:41 PM
 
469 posts, read 865,376 times
Reputation: 482
Quote:
Originally Posted by viper96 View Post
I bought my home almost two years ago for $205,000 with a 5% thru VA in Texas, and my monthly payments were $1520 which included escrow and insurance. Now I just refinance down to 3.75% thru VA, rolled the closing costs into the loan, about $3200. Now my monthly payments are $1455, it only cut my payments by $65. They told me this before closing and I questioned why so less and they said because I was using my VA Loan in Texas. Then not even after two to three weeks after closing they sold my policy to another mortgage company. I had a friend who used them shortly after I did and they cut his paymentws by $450, he also used VA and almost the same percentage.
So, was I tricked? And if so, what can I do about it, I already closed?

Thanks!
You should of been eligible for a VA Interest Rate Reduction. These zero cost loans drop your payment by a bunch. No expert but I dont think they should have charged closing costs on a VA reduction loan. Somthing doesnt seem right.
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Old 03-27-2012, 04:57 PM
 
Location: Boise, ID
8,047 posts, read 27,214,048 times
Reputation: 9443
Quote:
Originally Posted by viper96 View Post
I bought my home almost two years ago for $205,000 with a 5% thru VA in Texas, and my monthly payments were $1520 which included escrow and insurance. Now I just refinance down to 3.75% thru VA, rolled the closing costs into the loan, about $3200. Now my monthly payments are $1455, it only cut my payments by $65. They told me this before closing and I questioned why so less and they said because I was using my VA Loan in Texas. Then not even after two to three weeks after closing they sold my policy to another mortgage company. I had a friend who used them shortly after I did and they cut his paymentws by $450, he also used VA and almost the same percentage.
So, was I tricked? And if so, what can I do about it, I already closed?

Thanks!
Correct me if this is not correct, but this sentence sounds like they were saying you were already using your VA eligibility on another house. Do you own more than one house? Are you sure that your new loan is still a VA?

If there really was a mistake made, I don't know what can be done now, but it would probably be worth talking to the local VA office to see if they can assist you on this.

But you can't assume a mistake was made just because your friend got more of a reduction than you did, unless you both bought the same day, using the same lender and loan type, on the exact same price of house, and now are both refinancing on the same day, with the same lender, to the same loan type, AND neither of you ever made any extra principal payments over the years. Oh, AND you both have the same credit score, income, debt, job history, etc.

It is entirely possible for two people to refinance, and one saves WAY more than the other, because they had a worse loan to start with. If your friend owned his house longer (and thus paid more principal off), or cleaned up his credit in the intervening years (and thus qualified for a better rate), he could easily have saved more than you.
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Old 03-27-2012, 05:11 PM
 
Location: Austin
7,238 posts, read 20,567,487 times
Reputation: 9986
It sounds like the friend waved his escrows and is thus saving that monthly fee, but going to pay for it each year on his own.
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Old 03-27-2012, 05:16 PM
 
Location: The middle of nowhere Arkansas
3,325 posts, read 3,031,665 times
Reputation: 1012
Quote:
Originally Posted by viper96 View Post
I bought my home almost two years ago for $205,000 with a 5% thru VA in Texas, and my monthly payments were $1520 which included escrow and insurance. Now I just refinance down to 3.75% thru VA, rolled the closing costs into the loan, about $3200. Now my monthly payments are $1455, it only cut my payments by $65. They told me this before closing and I questioned why so less and they said because I was using my VA Loan in Texas. Then not even after two to three weeks after closing they sold my policy to another mortgage company. I had a friend who used them shortly after I did and they cut his paymentws by $450, he also used VA and almost the same percentage.
So, was I tricked? And if so, what can I do about it, I already closed?

Thanks!
I doubt it. You've only owned your home for a couple of years. I also don't understand why you didn't know your payments would only drop a few bucks. I recently refinanced myself but I've owned my house for a decade and pretty much knew what the payment was going to be before I did this.
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Old 03-27-2012, 05:35 PM
 
Location: El Dorado Hills, CA
3,724 posts, read 9,501,886 times
Reputation: 3905
Do the math, or have someone do it for you. Based on your loan amount ($205K) and the interest rate, your savings should be $137/month even with the closing costs rolled in.

But looking at your total payment it looks like you are doing escrow (paying insurance and taxes as part of your payment). Maybe they increased the amount they are charging for escrow fees? I don't know. But really, take your paperwork to someone that understands the details of the finances and get them to explain the changes and make sure you are paying the right amount. Without a thorough analysis of your loan docs and HUD, it's hard to tell what they are doing.
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Old 03-28-2012, 02:10 PM
 
Location: Denver, CO
3,135 posts, read 11,016,738 times
Reputation: 2479
I am about to go to closing on my first refinance. I think it's a complicated process and definitely have my doubts. I went from a 30 year 5% to a 20 year 4% with about $4,000 to closing, all rolled up in my loan. PMI was $175 on the old loan, now $130 since I have over 10% equity. My payment is about $60 more a month with reducing over 7 years off the mortgage.

You can't just compare your friends mortgage with the montly payment. Insurance and taxes are probably in there, which could be a huge difference.
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