Recommendation for a Refi

[red-beard]

How much did they roll into the new loan? I can roll everything in if I want...

[Rick Lee]

Red, take that deal and run. Though be sure to update the payoff before closing because it will account for your payment tomorrow, but maybe not for another week. My taxes are $1500 a yr., so escrow waiver doesn't make a lot of sense unless it's free.

Hugh, when you say no money out of pocket, do you mean they didn't add the closing costs to your balance? There's no free lunch and unless your new balance is the same as your old payoff, your closing costs are rolled in and you're paying them over the life of the loan.

[Rick Lee]

Also, RedBeard, as long as you're not closing in April, you might as well close at the very end of May, allowing a few days for whatever TX's right of recision period is. That way there's that much less prepaid interest due (computed between closing date and last day of month), escrow waiver notwithstanding. Your next payment would then be in July.

[rusnak]

Originally Posted by mikester

Really?! Wells has been our mortgage holder for years now and they have always treated us well on the refis we have done. They always call us when the rates are in our favor for a refi and so far I haven't been charged much to do it and usually very little out of pocket.

I would point you to our guy but he's out of Santa Monica, not sure he can help you.

Does your guy do commercial single tenant mortgages, or just residential? I ask because I am getting commitments from lenders and will pull the trigger soon. WAG. AAa credit.

[mikester]

Originally Posted by rusnak

Does your guy do commercial single tenant mortgages, or just residential? I ask because I am getting commitments from lenders and will pull the trigger soon. WAG. AAa credit.

I have only used him for residential - I don't know what else he does.

[Hugh R]

Besides cashcall, New American Funding 1-888-876-RATE is offering me a new loan for my vacation condo with no fees on their side, but a slightly higher rate of 4.0% versus my CU which is offering 3.875% but wants about $1,200 in loan fees.

[Rick Lee]

Originally Posted by Hugh R

Besides cashcall, New American Funding 1-888-876-RATE is offering me a new loan for my vacation condo with no fees on their side, but a slightly higher rate of 4.0% versus my CU which is offering 3.875% but wants about $1,200 in loan fees.

There's no such thing as a truly no-fee loan. That's why they can offer you a lower rate with fees or a higher one without. Depending on how long you keep the loan, you'll pay more in the higher rate than upfront fees if you pay out of pocket at closing. They can sell it for more on the secondary market when it's a higher rate.

[Hugh R]

I understand Rick. Its about a $12/month difference in monthly payment. That works out to 8 or 9 years for breakeven on a rental. More when you include it as a business writeoff.

[Rick Lee]

Ah, I forgot this is a rental. In that case, I'd take the lowest rate possible if you can come up with the cash at closing. It's all tax deductible, but keeps your monthly cash flow better in case of vacancies or declining rent. I don't think I can refi my rental, as my ARM has stayed under 4% for the last three adjustment periods.

[RWebb]

hugh - how many did you comparison shop before deciding on cashcall?

[Hugh R]

On my refi, my CU, Chase, Wells Fargo and Cashcall. Cashcall for the refi was truly no fees, I mean none other than the $125 fee from my old lender for processing to close the old loan.

On my condo I'm buying Cashcall was pricey on fees and the best they could offer was 4.5% APR and APY. So I'm still shopping on that one, but am leaning towards New American Funding, they say not loan fees, no appraisal nothing other than what Escrow will charge. Tonight I'm scanning all my 2010/2011 taxes, W-2s pay stubs, Driver's licenses, etc. I might as well do it now since they will all want to see the same stuff.

[red-beard]

Americash is coming in with the best deal. Still 2.99% for a 15 year fixed. Locking in tomorow.

[RWebb]

Thx, Hugh