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Old 12-05-2008, 05:27 PM
 
Location: Simpsonville, South Carolina
335 posts, read 1,109,134 times
Reputation: 141

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Can someone please shed some light. With all the talk of rates dropping, I called my mortgage broker. We closed on our house in April. She says that there is no such thing as a streamlined mortgage refinance anymore. We can do a refi , but have to add more for closing costs than before when we could refinance several years ago. She said it is just like doing a purchase again, which is why it costs more. I was told to expect to pay about $3000 to $4000 in costs for the refi on a $200k loan. I understand it's not out of pocket, but put back in with the mortgage. Is this true about the cost to refi, or is there a more efficient way? I still want the good low rate they are talking about. Thanks, Liz
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Old 12-05-2008, 05:38 PM
 
Location: The Conterminous United States
22,576 posts, read 49,440,850 times
Reputation: 13500
I called my broker and she said that it would be about $3,500 for closing and escrow and that my appraisal look-up says that I have lost $4,000 in equity, even though the Feds website says we have gained $700. So we either pony up the money or don't do the refi.

I'm trying to figure out what the break even point is. Our rate is now 6.7.

I think there are a lot of us in the same boat. Bear in mind that they are now talking about 4.5 for new purchases with a lot of rumblings for refis too.
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Old 12-05-2008, 05:40 PM
 
28,461 posts, read 76,034,829 times
Reputation: 18533
Call other lenders.

The reality is that "back in the day" the lenders were all happy to give away "no cost refi" because they had VOLUME and could bury costs due to the profit per loan. And they were HORDES of morons that they could make obscene profits from...

Many lenders have SHUT DOWN their entire wholesale operation, operating ONLY through their own retail employees. That, together with the dearth of loan activity. leaves brokers STARVING.

Fact is, it cost the same for the lenders with decent systems to refi today as it was back in the day. There are plenty of lenders that have the capacity to do the volume. If they are hungry, and you have excellent credit, they should be more than willing to do a refinance for FAR LESS than the amount quoted...
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