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Profile picture for Jax1234

FHA streamline rate quote legit?

So I got a quote from Roundpoint last Friday for a 30 yr FHA streamline for 3% which included $3900 in lender credits. I was going to cancel my refi application with another bank which seems more reputable (NASB) who is offering 3.375% with $5300 in lender credits. But then the guy from NASB convinced me that the guy from Roundpoint was lying and setting me up for a bait and switch. Any thoughts?
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September 23 2012 - US
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Profile picture for Jax1234
So closed today with NASB. No surprises. 3.25% interest, 30 year FHA streamline. Pleased. It was helpful to get competitive quotes of Clay Branch and Melvin List, bc using those as comparisons, was ultimately able to talk down NASB to its rate. Thanks all.
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October 13 2012
Profile picture for Jax1234
Ok that is currently not the case. Is this important bc our monthly PMI is based on the refinanced loan amount? I will check with my LO today about this. Thanks.
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October 11 2012
Whatever you do just make sure your loan balance doesn't increase and you pay the upfront mortgage insurance in cash. The lender credit should support that. Nobody ever shows you where your current am schedule is going to be versus the new one and its critical.
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October 10 2012
Profile picture for Jax1234
Well we r set to close on the FHA streamline refinance this Saturday w NASB. They went down to 3.25% and increased their lender credit to $7500. So by the time we make our first mortgage payment our loan amount will not have increased any, bc of the money we get back from escrow and applying the month off from paying the mortgage towards the principal. Will report after closing how it all goes.
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October 10 2012
Profile picture for 2sleepy
we just closed a refinance with Roundpoint, and the one issue I had with them was their title company fee. On a 192k refinance it was $1338. I contacted a local title company and their fee was $520 less. I told Roundpoint I did not want to use their title company, they agreed- then the games started, they asked if I would use performance title if they matched the fee from our title company, I agreed..but they kept sending me revised HUD-1 statements that at first did not reflect any credit, then the next one had a credit of $170..after the fourth or fifth one they finally sent me one that reflected the credit- it arrived 30 minutes before closing. I think they do this because they don't expect people to even recognize that their title fees are way too high.
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October 10 2012
Right, the "lender cost of $995 " is the origination, your GFE should say your adjusted origination is negative $5305. I assume the Title Insurance of $2445 includes the Closing Agents fee and even then it is extremely high.      
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September 24 2012
Profile picture for Jax1234
Here are the Loan Expenses:
Credit report - $31
Title Insurance: $2445
Govt. Recording Fees: $171.50
Transfer Taxes: $1567.5
Pre-Paid Daily Interst $53.07
Flood Cert: $9.25
Lender Cost: $995

Lender credit to pay for above is now $6300
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September 24 2012
It doesn't, it appears they are charging you a couple of junk fees like underwriting, processing, etc for $995 which is what shows up in
" Origination " and the lender credit is applied at the bottom of the worksheet, not entered in section 2 so that it carries over the the GFE in your adjusted origination. Trust me, you want it displayed on the GFE.

Anyway, you can still do better.    
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September 24 2012
Profile picture for Jax1234
I don't think my GFE reflects the $5300 credit. I am asking my LO this now to clarify. Thanks.
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September 24 2012
That would mean the Origination charges exceed the lender credit by $995, not a good deal. Get more quotes.
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September 24 2012
So wait a minute, after the $5300 credit NASB is providing, there still is a positive number of $995 in the Adjusted Origination Box? If that is the case then you are being ripped off a little bit. Given that we all have origination fees of some sort I would expect that box to be at worse -$4300
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September 24 2012
Profile picture for Jax1234
$995
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September 24 2012
What figure is in Box A ( adjusted origination ) on your Good Faith Estimate?
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September 24 2012
Profile picture for Jax1234
Also NASB added another $1000 to my lender credit due to improvements in the market rates. But by accepting, I'm not allowed to float down any more if rates go down further.
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September 24 2012
Profile picture for Jax1234
I got my rate locked with NASB last week on Thursday. Is it worth it to look around some more?
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September 24 2012
I would be willing to bet that Roundpoint is indicating the UFMIP of 1.75% as a lender credit so the borrower does not think that UFMIP is an acutal out of pocket expense.  Your offer from NASB is a pretty fair one considering if you have been in application with them for a couple of weeks now rates were a little worse back then.
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September 24 2012
Profile picture for Go Huskers
Agree with clay but I'll go further. 3% with the $3900 credit is BS unless what they are doing is applying that against their origination. There is no way you will get 3% with a -$3900 adjusted origination fee. Lenders have now found a great way to confuse borrowers into not comparing apples to apples by saying you get a "credit" of XXXX.XX and not specifying if this is the credit on page 2, line 2 of the GFE or the adjusted origination which shows the ACTUAL credit you receive on page 2 box A of the GFE. 

A rate lower than 3.375% should result in an adjusted origination of greater than, or at minimum equal to, the $5300 quoted by NASB. (-$5300 adjusted origination page 2 box A) 

Make sure you understand the difference.
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September 23 2012
Don't know if your 3% offer is legit but I do know you can get a lower rate and higher lender credit than the 3.375% / $5300 if you have good credit since your other post said your loan balance is $282K.
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September 23 2012
 
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