Refi closing time

[MrsE]

We locked in an amazing fixed rate today on a mortgage refi at 2.75% but it’s estimated it may take up to 90 days. Are there any red flags with it taking that long? Or anything we should be concerned about? Perhaps it’s just taking that long because everyone is refinancing right now, but thought I’d ask here. Thanks!

[Susie]

How long is your lock good for? If the "real life" estimate to get clear to close exceeds the lock (which is usually for 60 days) then you should be prepared for that to be an issue. If you don't close within the lock, regardless of whose fault that is, you'd need to extend your lock (usually costs money) or it will expire and you'd lose the rate you locked.

We refi'ed last October after locking in August. The bank waived the appraisal, so a whole step was taken out of the process, and everything else went smoothly. We e-signed everything promptly, etc. The bank still wasn't ready to close until the last business day on our lock. I was really annoyed at all the unnecessary drama.

[MrsE]

Susie they said the lock is good for 60 days but because they’re backed up and a credit union that can do everything in house they are honoring extensions if it goes past 60 days. If I get that in writing over email (they said they would/could provide that) should we be OK? Or is this a big red flag? Thanks for your input!

[simpsongal]

Jul 8, 2020 16:45:36 GMT -5 MrsE said:

Susie they said the lock is good for 60 days but because they’re backed up and a credit union that can do everything in house they are honoring extensions if it goes past 60 days. If I get that in writing over email (they said they would/could provide that) should we be OK? Or is this a big red flag? Thanks for your input!

i would get them to put the cost of a rate lock extension in writing. We had to pay one, they cut It in half but it was still over $300.

[atarianna]

Ours took a while, more than 90 days but happened and I am thrilled with our new rate.

[njohnson1972]

Jul 8, 2020 15:44:50 GMT -5 MrsE said:

We locked in an amazing fixed rate today on a mortgage refi at 2.75% but it’s estimated it may take up to 90 days. Are there any red flags with it taking that long? Or anything we should be concerned about? Perhaps it’s just taking that long because everyone is refinancing right now, but thought I’d ask here. Thanks!

How long is the mortgage?  Did you pay any points?

[madisen]

Per the CFPB, lenders are not allowed to charge a borrower for an extension on a lock if the delay is not the borrower’s fault. Wells Fargo was fined millions a few years ago for doing this is egregiously. Usually knowing these things and letting the lender know you know this is enough if the lender is trying to do something that isn’t compliant per the regulations.

Most lenders are definitely backed up these days and have more business than they know what to do with because rates are so low. So at the moment 90 days isn’t great but not necessarily a red flag. Do I think you can find a lender that can do it in less? Sure. But do you need to? Not necessarily if you like who you’re working with, your rate will be good, and they’re competitive with the all-in costs.

[sadlebred]

Wells Fargo has been fined for a lot of things.

[madisen]

They sure have been. However I was referring specifically to lenders having to abide by guidelines on when and how they can charge borrowers for rate lock extensions.

The CFPB wasn’t playing with that one.

www.consumerfinance.gov/about-us/newsroom/bureau-consumer-financial-protection-announces-settlement-wells-fargo-auto-loan-administration-and-mortgage-practices/

[ohgillian]

I did the paperwork for ours starting in late Feb, and we literally signed the closing papers about 2 weeks ago. It took so long that sometimes I would completely forget about the refi altogether.

Prior refis were much faster, but they did warn me at the beginning that it would take a long time.

[MrsE]

Jul 9, 2020 10:47:15 GMT -5 njohnson1972 said:

Jul 8, 2020 15:44:50 GMT -5 MrsE said:

We locked in an amazing fixed rate today on a mortgage refi at 2.75% but it’s estimated it may take up to 90 days. Are there any red flags with it taking that long? Or anything we should be concerned about? Perhaps it’s just taking that long because everyone is refinancing right now, but thought I’d ask here. Thanks!

How long is the mortgage?  Did you pay any points?

It’s a 30 year fixed (the 20 year fixed was the same rate so we are doing 30 in case we ever need flexibility). No, we did not pay any points!

[MrsE]

madisen - thank you, that is super helpful!

[njohnson1972]

Jul 10, 2020 8:50:58 GMT -5 MrsE said:

Jul 9, 2020 10:47:15 GMT -5 njohnson1972 said:

How long is the mortgage?  Did you pay any points?

It’s a 30 year fixed (the 20 year fixed was the same rate so we are doing 30 in case we ever need flexibility). No, we did not pay any points!

Wow! That is great.  I ended up refinancing yesterday after seeing your post.  I got 2.875% for 30 years and no points.  I am hoping it doesn't take 90 days to close.

[MrsE]

njohnson1972 yay! That’s great! Fingers crossed for both of us that things move quickly!

Either way, for us, it will be worth the wait and a HUGE savings so we are pretty thrilled!

[RockNVoll]

njohnson1972, MrsE, can you share the lenders you're using? I'm jealous; we refi'ed to the same rate just a couple of months ago but it's only a 10/1 ARM.

[icedcoffee]

Jul 10, 2020 11:22:21 GMT -5 njohnson1972 said:

Jul 10, 2020 8:50:58 GMT -5 MrsE said:

It’s a 30 year fixed (the 20 year fixed was the same rate so we are doing 30 in case we ever need flexibility). No, we did not pay any points!

Wow! That is great.  I ended up refinancing yesterday after seeing your post.  I got 2.875% for 30 years and no points.  I am hoping it doesn't take 90 days to close.

Wow!!  We started the process around 2 weeks ago and got a 30 year fixed at 2.875%.  Points bring APR to 2.921%.  Now I wish I had waited another week! 

Oh well...we'll close in less than a month.

Who would have thought rates would continue to get so low?!?!

[onomatopoeia]

Jul 10, 2020 11:22:21 GMT -5 njohnson1972 said:

Jul 10, 2020 8:50:58 GMT -5 MrsE said:

It’s a 30 year fixed (the 20 year fixed was the same rate so we are doing 30 in case we ever need flexibility). No, we did not pay any points!

Wow! That is great.  I ended up refinancing yesterday after seeing your post.  I got 2.875% for 30 years and no points.  I am hoping it doesn't take 90 days to close.

This is exactly what we got as well, except we started the process a few months ago.  We close on Monday.  I'll be glad to finally be done!

OP they were pretty open with us that it would take a while because they were so busy with all the refinances.  I did get our rate lock in writing.  The biggest hassle was that they kept asking for updated account info and our most recent pay stubs, and they also did a verbal confirmation of employment today (which they did not do with our last financing, which was last year when we bought the house).  They said it was because there's been so many layoff recently.

[MrsE]

Jul 10, 2020 11:45:06 GMT -5 RockNVoll said:

njohnson1972, MrsE, can you share the lenders you're using? I'm jealous; we refi'ed to the same rate just a couple of months ago but it's only a 10/1 ARM.

We’re using a local credit union. Eligibility requirements are one must live in DC, MD, or VA. Happy to share more if that applies and/or you’re interested!

[njohnson1972]

I went with AmeriSave. My agent, Justin Buchanan, is great. I went back and forth the same day I read this post with Justin on the figures. I was comparing them to what LenderFi was showing. I made him breakdown all of the costs, which are pretty expensive in Florida due to doc stamps charged on loans. That afternoon, Justin asked what it would take for me to move forward with the loan and I asked for him to waive the application cost ($500). They couldn't do that, but they are giving me a $500 credit at closing. The appraiser just left my house. They are wasting no time.

LenderFi estimated closing costs were $700 higher than AmeriSave, not including the $500 credit.

[Shreddingbetty]

I first emailed my mortgage dude on April 15 and I closed on May 29. But yea lots of people refinancing so it may take longer

[dr.girlfriend]

Wow, that's great! We got 2.75% on a 15-year back in 2012, but I've never seen it so low on a 30-year. Congratulations!