Refi Fees

[ChrisL]

So I’m in the process of a refi and the total fees I’m paying is around $4,600 in fees & closing. I’m supposedly getting a employee discount but really don’t know how much.  We started the process with our credit union but they couldn’t match the interest rate so we never got this far.  

So my brother and his wife are also refi’ing and I asked him what he was paying in fees.  Damn he’s paying over to $13K in closing & fees.

I don’t know if I’m getting a smoking deal, he’s getting railroaded or maybe a little of both?

Anyone have any recent refi experience or insights?

[Ralphie ★]

My last one was a heck of a long time ago, but I think it was more like yours. It sounds like your brother is getting hosed. 

[Dirtyhip]

2 minutes ago, ChrisL said:

So I’m in the process of a refi and the total fees I’m paying is around $4,600 in fees & closing. I’m supposedly getting a employee discount but really don’t know how much.  We started the process with our credit union but they couldn’t match the interest rate so we never got this far.  

So my brother and his wife are also refi’ing and I asked him what he was paying in fees.  Damn he’s paying over to $13K in closing & fees.

I don’t know if I’m getting a smoking deal, he’s getting railroaded or maybe a little of both?

Anyone have any recent refi experience or insights?

Maybe he is borrowing more, has a higher rate, more points, etc.

Every deal is different.

we are taking out a little cash via HELOC cause it is the best deal for us. 700 in fees and application for about 70 grand at a kick ass rate.

[ChrisL]

1 minute ago, Dirtyhip said:

Maybe he is borrowing more, has a higher rate, more points, etc.

Every deal is different.

we are taking out a little cash via HELOC cause it is the best deal for us. 700 in fees and application for about 70 grand at a kick ass rate.

Good point, our refi amount is about 20% of his... 

We are borrowing a little on equity to pay off my wife’s car.  Rolling her car note into a lower interest rate & our monthly mortgage payment is still less.  

Freaking sucks though but we need the flexibility to live more comfortably on just my salary.

[Dottleshead ★]

26 minutes ago, ChrisL said:

So I’m in the process of a refi and the total fees I’m paying is around $4,600 in fees & closing. I’m supposedly getting a employee discount but really don’t know how much.  We started the process with our credit union but they couldn’t match the interest rate so we never got this far.  

So my brother and his wife are also refi’ing and I asked him what he was paying in fees.  Damn he’s paying over to $13K in closing & fees.

I don’t know if I’m getting a smoking deal, he’s getting railroaded or maybe a little of both?

Anyone have any recent refi experience or insights?

If you are getting $5k or below, your doing well. Your brother is getting ... errr...  not getting a good deal.

[Dirtyhip]

9 minutes ago, ChrisL said:

Good point, our refi amount is about 20% of his... 

We are borrowing a little on equity to pay off my wife’s car.  Rolling her car note into a lower interest rate & our monthly mortgage payment is still less.  

Freaking sucks though but we need the flexibility to live more comfortably on just my salary.

Banks do not like cash out right now.  They hate it.  

I was told that they have tightened up a lot on this to avoid another 2008 meltdown with RE.  People are borrowing and making banks nervous.

I was told construction loans are horrid right now, due to this.  We didn't want to take money out, but I am preparing for the worst case scenario with rising material costs.  They are unstable as all hell.  Luckily our home has minimal materials.  

[Parsnip Totin Jack ★]

Fees sound about right. Fannie and Freddie, the government sponsored entity that buys and sells mortgage loans, announced an 0.5% increase in refinance fees charge to consumers. This took effect in September. As expected, mortgage lenders complained but quickly got in line and passed the cost onto borrowers.

[Dottleshead ★]

26 minutes ago, Old No. 7 said:

Fees sound about right. Fannie and Freddie, the government sponsored entity that buys and sells mortgage loans, announced an 0.5% increase in refinance fees charge to consumers. This took effect in September. As expected, mortgage lenders complained but quickly got in line and passed the cost onto borrowers.

Yes also known as the adverse market fee. I didn't want to bring it up because if he isn't in the pipeline now, he's going to be paying it. Officially kicks in on December 1st, but if you didn't start the process last week, you probably are paying it. Everything you wanted to know about mortgages and mortgage backed securities here:

https://www.mbslive.net/

[Bikeguy]

We paid about $955 in fees for our refinance back in September of 2019.  They had some kind of special deal.  It was considerably cheaper than normal.