are there additional fees when changing banks to refinance

bctodd
Contributions:1

is it better to refinance at the same bank that holds your mortgage? if so, what are the additional fees from a new bank? when getting a broker involved why do they have lower rates compared to banks themselves? thank you

Flag content

December 30 2008 - Castroville

E-mail Share RSS

Answers (6)

Hi Carmen-

This is Gracey from Zillow.

Please refrain from providing your contact details on your comments. The users can go to your profile page to view your information. Please abide by the Good Neighbor Policy (http://www.zillow.com/how ... olicy.htm) in the future.

Thanks for your understanding.

Flag content

December 30 2008

Carmen Martin, "carmenmartinsc"
- 0.0/5.0
Contributions:18

I usually say to compare 2 to 3 lenders with one being your existing lender. Look at total payback over the life of the loan as well as rate and fees.

https://www.wfhm.com/loans/carmen-martin/index.page

Flag content

December 30 2008

Martin Farris, CFP, "Dream Home Funding"
- 4.9/5.0
- (37 reviews)
Contributions:789

Your current lender may or may not be competitive on your refi, it would be smart to get quotes from other sources and compare.

First, you need to determine whether it is wise to pay closing costs or not. There is no such thing as a free refi. You will pay one way or another. Your options for paying are to write a check at closing, add the fees to your loan amount, or pay a higher rate to have the lender pay them for you.

Pricing right now makes having the lender pay very unattractive. I ran the numbers on a "no closing cost" loan several times yesterday, and found that in most cases it was only taking the lender 18-21 months to recover the closing costs through the additional interest. In other words, if you took the "no closing cost" option and kept the loan for 5 years you wound up paying the closing costs 3 times as interest instead of once.

Brokers generally offer lower rates than banks because many of us are very low cost operations, and can operate at a profit with much lower gross revenue than a bank that has a lot of overhead and other costs.

Flag content

December 30 2008

Martin Wareing, "Martin Wareing"
- 5.0/5.0
- (2 reviews)
Contributions:3772

bc,
The answer should be hands down that the bank holding your loan should crush the outside world. They already hold your loan and have a relationship with you however it started. This is not the case many times, though and if it happens to you as well. SHAME ON YOUR LENDER! Get a quote and Good Faith from them and on the same day, get a quote for the same rate or costs (choose 1) and you can compare the costs for the rate or the rate for the costs. Brokers may "price better" simply because their pricing of their services is not regimented or confined to a single source or a single decision maker. The larger the loan, the tighter the spread (pricing) as spelling bctodd is the same if the loan is $100,000 or $400,000. Hope that helps and Happy New Year.