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Answers (2)
- Clay Branch, "Georgia Loans"
- Contributions:7839
So the builders lender is telling you to refi in 1 week?
what they said is that I can go with in 1 week after closing to BOA as youc can save lot of money for stamps and paper work price is that true?
No, that is not true. If they are sending the loan to B of A then you may be able to retain the escrow acct and not have to add a new escrow into the new loan amt but for a rate of 4.125% 30 Yr you will pay full closing costs which is more than " stamps and paperwork ". You will save about 6% on the payment but if this is a 100K loan amt it will take 8 years just to get the closing costs back. Divide the difference in monthly payment into the total closing costs to determine the cost recapture time.
what they said is that I can go with in 1 week after closing to BOA as youc can save lot of money for stamps and paper work price is that true?
No, that is not true. If they are sending the loan to B of A then you may be able to retain the escrow acct and not have to add a new escrow into the new loan amt but for a rate of 4.125% 30 Yr you will pay full closing costs which is more than " stamps and paperwork ". You will save about 6% on the payment but if this is a 100K loan amt it will take 8 years just to get the closing costs back. Divide the difference in monthly payment into the total closing costs to determine the cost recapture time.
- RichardReid
- Contributions:197
If Bank of America will issue you a new loan within 1 week of closing, you can do it.
A couple of things to pay attention to:
1. Typically you can get out of the lock for a fee. Start there, and see if you can get closer to to the BOA rate without doing 2 loans.
2. Check the BOA rate to make sure it is what you think it is - with all of the fees, points, etc.
3. It typically doesn't make sense to refinance (which is what you will be doing) for less that 1 point of interest discount unless you are going to be in the home a while. Think about how long you really expect to live in the home before you go for the new loan. Calculate the difference in payment over x months compared to the cost to determine the real value.
4. Unless the attorney or closing office is the same for both loans - and they are the bank are willing to waive fees, I'm not sure there is any savings to be had by a short window. The loans are unique, all of the paper work is unique. In terms of a closing, the filing fees are a pretty small portion of the cost.
Congratulations on closing!
A couple of things to pay attention to:
1. Typically you can get out of the lock for a fee. Start there, and see if you can get closer to to the BOA rate without doing 2 loans.
2. Check the BOA rate to make sure it is what you think it is - with all of the fees, points, etc.
3. It typically doesn't make sense to refinance (which is what you will be doing) for less that 1 point of interest discount unless you are going to be in the home a while. Think about how long you really expect to live in the home before you go for the new loan. Calculate the difference in payment over x months compared to the cost to determine the real value.
4. Unless the attorney or closing office is the same for both loans - and they are the bank are willing to waive fees, I'm not sure there is any savings to be had by a short window. The loans are unique, all of the paper work is unique. In terms of a closing, the filing fees are a pretty small portion of the cost.
Congratulations on closing!
can i refinance with other lender within 1 week after closing
I'm about to close my home.Builder is giving closing cost assistance so I locked in 2 months back with 4.875% interest but BOA is offering like 4.125% interest for me right now . The builders lender is no where matching BOA interest rates. But as I locked the interest rates with builders lender I couldn't go out at this stage but what they said is that I can go with in 1 week after closing to BOA as youc can save lot of money for stamps and paper work price is that true?
Thanks,
Shan
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