ReFi a Mortgage

[cavbaby]

Hi! Yes, basically by "paying points" you are simply buying down your interest rate- so you can either pay your points up front and finance with a lower rate OR pay no points and finance with a higher rate over the term of your loan-I, also have property on 30A and would be more than happy to provide you with a good faith! Please feel free to call me 770 833 1210 or email me at bcavaciuti@capital1lending.com- I am located right outside of Atlanta & would love to work with you! Thx- Beverly

 

[Bob]

Countrywide said that they will not send me out a good faith until I fax them some papers.

If they pulled your credit report, they have three days to generate a copy of your application, good faith estimate, truth and lending, and several other disclosures. If not, they are trying to qualify you. Your statement makes me believe you are working w/ the retail division at Countrywide, through an existing mortgage, retail store in your town, or their website. End run these folks and get an aggressive broker who can use the wholesale division, as they offer lower rates. The broker can make his/her money by being paid yield spread premium[commision paid by lender to sell a slightly higher rate], or charging you a broker fee, or both. Shop as many brokers as you can stand as long term rates remain stable. A good broker can give you a lower rate, charge no origination,discount points, serve as a buffer w/ the lender, and make the whole ordeal a bit easier. A bad broker will beg for your business, give you a partially filled out good faith estimate,not mail you your disclosures in a timely manner, and behave like a car salesman. I'm already seeing the grappling hooks being thrown out on this thread. Do not pay upfront points!!!! Get a broker trusted and used by someone known to you that has done business with said party, got to closing w/ no suprises. This will get you through the minefield.

 

[Smiling JOe]

Dabell,
Are you aware that effectively, each point is equal to 1/8 a percent on the rate?

This would make the first quote a real rate of 6.25% and the second quote would be 6.5%.

some may not understand, so I will give you the latter quote as an example:

Rate quoted: 6.125
points given 3.0

3.0 points x 1/8 = 3/8, which equals .375

original rate quoted 6.125 + .375 = 6.5% real rate.

OOPS!

Bad math -- my apologies.

the first quote of 6.0% with 1.5 points gives you an effective rate of 6.1875%

The second quote of 6.125% with 3.0 points gives you an effective rate of 6.5%

The first quote of 6.0% with 1.5 points is the better effective rate, but you need to see what other fees may apply. Admin fees, paperwork fees, origination fees, etc.

 

[Dabell]

OOPS!

Bad math -- my apologies.

the first quote of 6.0% with 1.5 points gives you an effective rate of 6.1875%

The second quote of 6.125% with 3.0 points gives you an effective rate of 6.5%

The first quote of 6.0% with 1.5 points is the better effective rate, but you need to see what other fees may apply. Admin fees, paperwork fees, origination fees, etc.

I just got the good faith from Statewide ( 6.0 ) with 1.5 but very high closing costs. I guess they are making more on the back end) Counrtywide will send me a good faith in 3 days now they told me that they will give me 5.825 with 3 1/2 points on a 3 year arm. I am so confused!!!!!!!! :shock:

 

[Bob]

I just got the good faith from Statewide ( 6.0 ) with 1.5 but very high closing costs. I guess they are making more on the back end) Counrtywide will send me a good faith in 3 days now they told me that they will give me 5.825 with 3 1/2 points on a 3 year arm. I am so confused!!!!!!!! :shock:

If this is a serious post I fear for your financial well being.

 

[Dabell]

If this is a serious post I fear for your financial well being.

Yes I am serious! this is what Counrty wide said that this is the best they can do for me. WHY?????

 

[Dabell]

Can anyone help me unerstand?????????

 

[Smiling JOe]

I just got the good faith from Statewide ( 6.0 ) with 1.5 but very high closing costs. I guess they are making more on the back end) Counrtywide will send me a good faith in 3 days now they told me that they will give me 5.825 with 3 1/2 points on a 3 year arm. I am so confused!!!!!!!! :shock:

As you can see in my corrected post, I do make mistakes. I highly recommend verifying and doing your due diligence. Don't rely on me or any other people to do your homework - we could all be wrong.

This third quote would give you an effective rate of 6.2625%. There is much more involved other than the rates, as you are discovering. The lenders have achieved their goal -- total confusion of the customer. They don't want you to be able to see side by side line item costs, because then they would have price wars with other lenders. This way with points, keeps most customers very confused. You are not too different than the norm.

 

[Bob]

Yes I am serious! this is what Counrty wide said that this is the best they can do for me. WHY?????

Read my post and pick a reputable local broker. Do not pay points. A broker may or may not go through Countrywide. Your broker may use Wells Fargo, ABN Amro, Washington Mutual etc. Some lenders have better fixed rates, others are better for ARM's. Shop more than one or two sources. Surely you know someone locally who can help you.

 

[Dabell]

I can't hear anymore bull crap! I went to a few but theses two are the ones that came up with numbers for me. I am doing a stayed loan.