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It is a long story but -- there was a lot of back and forth about not wanting to roll escrows and prepaids into the loan amount and getting a closing estimate showing that - but when they went to closing they rolled the escrows and prepaids into the loan which bumped up the loan amount by $3500. They were not given the new closing estimate showing that until they sat down to close. The lender is crediting back 2k but not enough to make it a true no cost refi which is what was discussed from the get-go.
It is a long story but -- there was a lot of back and forth about not wanting to roll escrows and prepaids into the loan amount and getting a closing estimate showing that - but when they went to closing they rolled the escrows and prepaids into the loan which bumped up the loan amount by $3500. They were not given the new closing estimate showing that until they sat down to close. The lender is crediting back 2k but not enough to make it a true no cost refi which is what was discussed from the get-go.
Money that goes into escrow is not really a "cost", per se. Sure, they've got to pay it but it's not a fee. How else would escrow be funded if they don't either roll it into the new loan or pay out of pocket at closing? Don't they know that they'll get the money currently in escrow from their original mortgage back once it's paid off through the refi?
I'm going through something similar on my end. I noticed they inserted a Transfer Tax in the Loan Disclosure. I'm asking why is there a Transfer Tax with no transfer of deed, and I am not getting any clear answers... just that it's required. Required by who? Who is this money going to?
I'm going through something similar on my end. I noticed they inserted a Transfer Tax in the Loan Disclosure. I'm asking why is there a Transfer Tax with no transfer of deed, and I am not getting any clear answers... just that it's required. Required by who? Who is this money going to?
It is usually required by the state.
As far as costs. Every penny should be returned, and you have 3 business day after closing to backtrack on refi.
The only cost to you will be appraisal, if it is not waived, subordination, if it was required, and condo questionnaire if the equity is below 25% and the property is in a condominium.
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