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refinance...the saga continues--mortgage broker?(4 posts)

refinance...the saga continues--mortgage broker?ColnagoFE
Jun 2, 2003 6:58 AM
Still debating what to do--have 3-4 offers now and have gotten as much info out of the agents as I seem to be able. Want to lock in a rate soon but don't want to get screwed. Has anyone used a mortgage broker before? Seems like a good idea to get a better deal. Any negatives with this method? Our current mortgage holder isn't cutting us a very good deal compared to some of the others out there and doesn't seem to concerned about getting our business and I'm leery of dealing with some new jersey firm I've never heard of with a great sounding offer, but questionable follow through. I swear I'm not a big one of government regulation, but the whole real estate loan market seems in great need of a big reform. Seems like I'm shopping for a used car. Why can't they just tell you EXACTLY what this is gonna cost--both out of pocket and total closing costs--and you could then be confident it would stay that amount through closing. I've been reading horror stories about how people go to close only to discover that the estimate (in good faith) was way off and they have to come up with a couple thousand more or the closing is off.
having just gone thru this...PaulCL
Jun 2, 2003 7:53 AM
A mortgage broker is generally paid by this underwriter of the loan...maybe 1/8 or 1/16 of a point.

The good faith estimate is just that..but your total costs depends on a lot of things, such as:
1. Time of the month you close. If I remember, you want to close at the end of the month so as not to have to pay interest for that month. Once the day is set, they should be able to give you an exact amount.
2. Do you escrow taxes and insurance?? Ifso, you might have an escrow credit from your previous mortgage holder. You also may have to fund up to six months of escrow payments for the new mortgage holder.
3. Pretty much all other expenses - title search, points, legal fees, etc.. should be spelled out in the good faith estimate.

That said, I have gone thru a dozen closings or refinancings in my life and gotten a surprise on most of them. My recent refi (5.50% 30 years, no points) actually netted me a positive. I had an escrow credit that surpassed my escrow amount due...by..$72!!!
Ask around. . .js5280
Jun 2, 2003 8:09 AM
Probably best to talk to friends, co-workers, etc. about whom they have used. Also, do you have any friends that are real estate agents? They'll know a bunch I bet. You're in the Denver correct? I've used Wells Fargo Mortgage for my original loan, then I switched to a broker through USAA (Insurance). No nasty surprises from either.
Thanks All!ColnagoFE
Jun 4, 2003 8:44 AM
Called up our realtor and got a recommendation on a broker. My wife talked to her yesterday and we decided to go with her instead of the others. She really answered all our questions and seems to have a pretty good offer. 4.75 for 15yr for around $2k total cost....so basically we keep our monthly payment the same, cut our term in half and get 8k or so to spend on improving the house. plus she said she could close a lot faster than Wells Fargo. No brainer! Now for all the paperwork....;(