I also have a refi question (update w/closing cost question)

[ohgillian]

UPDATE w/question

I did the costco online mortgage center to get quotes, and bankrate, and maybe one other place. Sebonic was offering a 3.25% so I contacted them to get a quote. I also contacted a third bank but can't get a response, and the 2 credit unions DH and I are in had much higher rates. anyway, the quote from Sebonic is the exact same as Wells Fargo; 3.25%, no points, and $3500 in closing costs. Is that an expensive amount of closing costs?? I was surprised it wasn't any less than Wells Fargo. 


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OP:

I called our current lender (Wells Fargo) and can get a 20 year refi at 3.25% with no points. Do I "have to" shop around and compare rates or can I just go with that? I say "have to" because of course you don't have to do anything, but I want to be responsible about it. But it's hard for me to imagine a better 20 year rate than that?

[Susie]

It will take you less time to check bankrate.com and NerdWallet.com, and maybe a local bank or two, than it took you to post this question, and then you'll know for sure.

[ohgillian]

Feb 4, 2020 9:25:25 GMT -5 Susie said:

It will take you less time to check bankrate.com and NerdWallet.com, and maybe a local bank or two, than it took you to post this question, and then you'll know for sure.

Fair enough.

[jennistarr1]

I feel more confident with a smaller lender than I do a big bank. Do you know any realtors and or anyone that can refer you to someone local

[k3am]

I am the opposite of jennistarr1 and only wanted a big bank. I quoted from smaller lenders as well, but when a big bank also gave us the best rate? Sold.

ohgillian , Wells Fargo had the highest posted rates of all the big banks we looked. I didn't even bother quoting from them. Our loan is a super jumbo (ugh), so that may have had something to do with it, but especially in our case, it was worth shopping around.

[RockNVoll]

Always shop around. After all, this is likely your biggest expense and best opportunity for significant savings.

[dr.girlfriend]

Ditto at least doing Bankrate. Like I said before, in the past I got WF to "match" my lowest rate but they were never the lowest rate off the bat. The last time I refi'd they couldn't even match it. I would want to put in legwork to at least know if I could have done better -- it probably will never be worth it to refinance again, so make it count!

[farmvillelover]

Wells Fargo will almost always price:rate match. If you’re up to it and are able to get the loan through their private bank, their rates are rock bottom. We were quoted about 4.6 1.5 years ago and Wells Fargo was able to get it to 3.5% no points on a 30 year but we had to put funds on deposit with them until the loan closed. Tiers were 250, 500 and 2mil. With each increase of a deposit, the rate went down considerably. Not sure if they advertise that or if they still do it but it’s worth calling.

[ohgillian]

It took me a little while to get back to this thread, but just wanted to thank everyone for the replies. I was hesitant to shop around because I don't feel super confident in HOW to do that, but you've given me soon good leads and I'm working thru these today. Thank you! I'll report back.

[ohgillian]

* Update in OP

[scout8]

I would look for a good mortgage broker in your area. They will shop around and find you the best rates and fees.

[madisen]

Fees and rate are a trade off. If you want less fees with these lenders, you'll have to take a higher rate. And vice versa, you can pay more "fees", buying down the rate in this case, and lower rate.

What you always want is an apples to apples comparison and it looks like you have that....same rate, same fees.

[k3am]

Your closing fees also include items like escrow fees, title insurance, recording fees, transfer Taxes, etc... these items are hard dollar costs that just get passed through to you. As far as I know, if you're going to refinance, you're going to end up paying those fees and they get lumped into "closing costs" like paying points, etc, which you CAN negotiate.

So depending on what those $3500 in closing costs are, that may or may not be expensive.

I would honestly recommend calling and talking to a broker vs. just doing the online quote thing. If you have a good broker, it's really helpful.

[ohgillian]

Feb 18, 2020 11:34:39 GMT -5 k3am said:

Your closing fees also include items like escrow fees, title insurance, recording fees, transfer Taxes, etc... these items are hard dollar costs that just get passed through to you. As far as I know, if you're going to refinance, you're going to end up paying those fees and they get lumped into "closing costs" like paying points, etc, which you CAN negotiate.

So depending on what those $3500 in closing costs are, that may or may not be expensive.

I would honestly recommend calling and talking to a broker vs. just doing the online quote thing. If you have a good broker, it's really helpful.

Thank you - I was literally JUST noticing this on a quote from a lender. The closing costs seemed high, then I noticed it included things like money to escrow. 

I am remembering that this is why I hate things like refi. It's so complicated for me. 

[k3am]

ohgillian, call and ask whoever is quoting you. Their job is to close the deal - make them earn whatever comission they're trying to get. You'll also feel better knowing that you understand the process and what you're paying.

And it's a pain in the ass. I work in commercial lending and I STILL felt like a fish out of water going through the process.