First refi need advice

12 Replies

Preparing to refi my first SFH I bought 6 months ago and the mortgage broker I used for my personal home came back with the following numbers. It's my first one so I plan to do 30 yr fixed conventional.

Here are the numbers my mortgage broker For my personal home gave me:

30 year fixed

75% ARV (120k)

4.5% rate

Points: 1.8% ($1800)

Origination: $1500

Total closing to lender : $3300

Other (fees, appraisal, title) $2900

Total closing cost: $6200 - seems high, what is everyone else seeing these days. I asked for a point reduction but was told since it’s such a small loan there is no budging. Broker can close quick after appraisal. I’ve worked with him once. Keep shopping or close?

@Ryan Johnson

Kinda depends on your personal credit/financial situation which is hard to share in public arena like this. My first thought is high. Sending you our lender's contact info.

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Originally posted by @Ryan Johnson:

Preparing to refi my first SFH I bought 6 months ago and the mortgage broker I used for my personal home came back with the following numbers. It's my first one so I plan to do 30 yr fixed conventional.

Here are the numbers my mortgage broker For my personal home gave me:

30 year fixed

75% ARV (120k)

4.5% rate

Points: 1.8% ($1800)

Origination: $1500

Total closing to lender : $3300

Other (fees, appraisal, title) $2900

Total closing cost: $6200 - seems high, what is everyone else seeing these days. I asked for a point reduction but was told since it’s such a small loan there is no budging. Broker can close quick after appraisal. I’ve worked with him once. Keep shopping or close?

I don't claim to be an expert at strategies for $100k loans (guess how often that comes up in SF Bay or SoCal...), but doing my best to "simulate" being a mortgage broker in Texas (throwing rando Tx zip code in, etc), that looks about right assuming this is a cash out refinance. Maybe not quite as good as what I'm seeing, but I can only see the preferential pricing I get (larger average loan amounts, etc), it's in the ballpark.

Originally posted by @Jenning Yu:

If possible, try no point, no closing cost loan to save cash, unless you have lots of cash.

Any recommendations on who offers this?

Originally posted by @Ryan Johnson:
Any recommendations on who offers this?

Sorry, my properties are all out of state.   My suggestion is just to ask more lenders.

Retrospectively, one of the biggest mistakes that I have made since my real estate investment is that I did not follow some experts’ advice: trying to use no point, no closing cost loans. Over the past several years, I invested about $100k my own money, but it costed me over $100k for points and closing costs because I pulled out lots of money with numerous cash-out refinances. Very stupid to waste so hugh money on closing costs. We can always refinance to lower rate if rate is down. From now on, if possible, I will only use no point, no closing cost loans.

Originally posted by @Jenning Yu:
Originally posted by @Ryan Johnson:
Any recommendations on who offers this?

Sorry, my properties are all out of state.   My suggestion is just to ask more lenders.

Retrospectively, one of the biggest mistakes that I have made since my real estate investment is that I did not follow some experts’ advice: trying to use no point, no closing cost loans. Over the past several years, I invested about $100k my own money, but it costed me over $100k for points and closing costs because I pulled out lots of money with numerous cash-out refinances. Very stupid to waste so hugh money on closing costs. We can always refinance to lower rate if rate is down. From now on, if possible, I will only use no point, no closing cost loans.


What kind of firms in general do no points loans? 

Small banks?

Large banks?

Independent brokers? 


What kind of firms in general do no points loans?

Small banks?

Large banks?

Independent brokers?

@Ryan Johnson  I would look to smaller local banks in your area of the properties.  For my last investment loan, for $75k, I paid:

credit report $20

flood determination $25

Document fee $350

Attorney / title search $1,000

Recording fees: $150

Wire fee $40

Total = $1,585

Hope that helps,

- Tom

Originally posted by @Tom S.:

@Ryan Johnson  I would look to smaller local banks in your area of the properties.  For my last investment loan, for $75k, I paid:

credit report $20

flood determination $25

Document fee $350

Attorney / title search $1,000

Recording fees: $150

Wire fee $40

Total = $1,585

Hope that helps,

- Tom

Was this for a conventional loan? 

I was mostly working with mortgage companies and independent brokers, not a fan dealing directly with banks.

Mortgage companies have some flexibilities, and  brokers are dealing with many lenders and have more choices.



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