All Forum Posts by: Jay C.

Looking for A-Team Contractors to work on a nicer house to rehab after the Texas snow storm. The laundry pipes busted and flooded three rooms. I'll need flooring, cabinetry and general contractors to come quickly to give quotes to get going with insurance and then the work done.

Thanks all.

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Fort Worth, Texas

Originally posted by @Basit Siddiqi:

Originally posted by @Jay C.:

Originally posted by @Basit Siddiqi:

@Jay C.

You are doing a refinance only to pull out $6,000?($213,000 - 207,000)

Is your rate going down significantly?

One item that seems off from the closing statement is it seems you are escrowing in 12 months of property taxes, i normally see 2-3 months of escrow taken at closing.
"initial Escrow Payment at Closing also has a Property Taxes at $432.52 per month for 12 mos (total = $5,190.24)"

When was the last time you paid for home owners insurance and taxes?
Was it 12 months ago?

If that is the case - the closing document is just making sure that those are paid.

I guess the question is, are you refinancing with the same bank?
Hasn't your company been collecting escrow for real estate taxes and home owners insurance for the past 10-11 months?
That should be an offset for the costs you need to pay for closing.

Also - I wouldn't really consider real estate taxes and home owners insurance really a "closing cost" because those have to be paid regardless whether you refinance or not. I just would want to make sure you are not double paying it.

I'm refinancing with another bank. I've paid all the property taxes up-to-date as well as the home owners insurance. I agree, I'm looking at it and it looks like there are some overlapping areas.

Would the Real Estate Taxes which are in the F. Prepaids and G. Initial Escrow Payment at Closing affect the J. Total Closing Costs?

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Originally posted by @Basit Siddiqi:

@Jay C.

You are doing a refinance only to pull out $6,000?($213,000 - 207,000)

Is your rate going down significantly?

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Originally posted by @Timothy Hero:

How large is the loan? $10k in closing costs sounds about right for a $300k+ loan.

Hi Timothy,

The original loan is $207K and the ending loan would be $220K when they add the closing costs.

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Originally posted by @Merritt Noel:

Working in the industry the Closing Disclosure can be a little misleading. However, to have your inital cash to close jump from $871 to $5,808 without any real explanation or discussion to explain the reasoning would be very frustrating.

To answer your questions:

1. obviously the difference between $7,771 and $10,309.99 does not add up to $5,100. its actually $2,538.99

1.1 Link F will only show property taxes that are due in the coming month or two. And therefore are broken out from section G which shows what needs to be collected to fund new escrow account. You can easily look up what the property taxes are online and if there are outstanding taxes due. And when your next installment will be due...this should help shed some light on the discrepancies you are seeing on the CD.

2. As for total closing costs upwards of $10,000 that is a difficult question to answer as everyone's situation is different. Any time closing costs change by that sizable amount someone (most likely) the LO did not do their due diligence. And it sounds like they are also afraid help you understand what exactly is going on. I do not remember the last time my closing costs for a client ever were more than $1000 higher than what I initially disclosed. But I am also very detailed oriented and make sure everything is dialed in from the get to.

Personally, I would ask for a detailed walk through of why the costs changed. Specifically, why they are collecting over $6,400 in property taxes alone. That is a sizable amount of money and increase to new loan size. If there are past due taxes that need to be rectified that would make sense. But you still also have the different amounts listed for property taxes which need explanation and to be double checked by the closer who worked those figures.

I hope this provides you a couple talking points as you have ever right to fully understand why the drastic change in cash to close in addition to why they are collecting 18 months of taxes with varying tax figures. Good Luck and look up your property taxes online so you have that information ready when speaking to them.

Hi Merriot,

Thank you for the detailed response.

1.1 - my property tax e-statement shows that I have $ 0.00 owed for 2020. That is due to it being in escrow, but I know it's rough $4,100 annually that's due every Feb. Would that mean ($341.67 X 4 months) $1,367 that should be considered for property tax as opposed to the 18 months below?

2 - I don't have any back taxes, so I'm baffled on why they are taken 18 months. They just emailed and said that it would be adjusted to 14 months of property taxes..What can I say? "The standard is typically 2-3 months? Why is 14 months of payment being lumped in"

THank you

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Originally posted by @Basit Siddiqi:

@Jay C.

You are doing a refinance only to pull out $6,000?($213,000 - 207,000)

Is your rate going down significantly?

Hi Basit,

My goal is to lower my rate (from 3.25% to 2.875%) and monthly mortgage so I can cash flow when I eventually make it a rental (Currently living here).

I asked about the escrowing as well and they said that it should be shortened, but that it will be reflected in the final docs....which I thought these were, that's why I needed to sign them before closing in person.

I appreciate the help all, I want to triple check these things as I'm working a W2 job, also just did a HELOC on my rentail property and might be missing the details.

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Originally posted by @Daniel Goerner:

It is very dependent on the loan, home, taxes and fees that the lender generally uses. There is no set ratio for how much your closing costs will be.

I work on loans, and I have seen the numbers jump due to late payments, hidden fees, taxes due and potential liens against the property.

HI Daniel,

My loan is currently at $206K and with this Refi, it would bring it up to $213K. Not too keen on the loan change. The county tax is $5,200

Does this sounds normal?

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Hi all,

I'm looking to refinance and I just want to understand the Closing Costs and Cash to Close details. The estimate of the Closing Costs and Cash to Close are wildly different in the Closing Disclosure that I'm looking at.

Questions:

1) Cash to Close was $871 in the loan estimate, but it's now $5,808 in the Closing Disclosure. The lender stated that this is due to the Total Closing Costs (J) jumping from $7,771 to $10,309.99.

When I look at the D+I it was $2,434.60 + $8,394.80.

The F. Prepaids has a property taxes of 6 mos = $1,1516.84, but the G. Initial Escrow Payment at Closing also has a Property Taxes at $432.52 per month for 12 mos (total = $5,190.24)

This doesn't seem right.

2) Is it common for the Closing Costs mount $10,309.99 to be rolled into the total loan? I wasn't looking to increase my loan.

I know there was an article or post that someone made with detailed answers on this, but I can't find it for the life of me!

Thanks

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Hi all,

Questions:

1) Cash to Close was $871 in the loan estimate, but it's now $5,808 in the Closing Disclosure. The lender stated that this is due to the Total Closing Costs (J) jumping from $7,771 to $10,309.99.

When I look at the D+I it was $2,434.60 + $8,394.80.

The F. Prepaids has a property taxes of 6 mos = $1,1516.84, but the G. Initial Escrow Payment at Closing also has a Property Taxes at $432.52 per month for 12 mos (total = $5,190.24)

This doesn't seem right.

2) Is it common for the Closing Costs mount $10,309.99 to be rolled into the total loan? I wasn't looking to increase my loan.

I know there was an article or post that someone made with detailed answers on this, but I can't find it for the life of me!

Thanks

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Yes, I was able to use my rental as my homestead and thus the HELOC

Originally posted by @Shimira Greene:

Originally posted by @Jay C.:

As a follow-up, Pen Fed came through on the HELOC on a rental investment. The home needs to have your homestead associated with it.

I have a HELOC at 4.75%. Hope you all have successes with it too.

CONGRATULATIONS!

How were able to use homestead on a rental?

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All Forum Posts by: Jay C.

Jay C. has started 10 posts and replied 35 times.

Post: A Team Contractors needed - Texas snow storm

Post: Understanding Closing Costs on a Refi

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Post: Understanding Closing Costs on a Refi

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Post: HELOC on investment property.