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Imaloaner
98 Posts |
 Posted - 04/21/2008 : 11:12:08 PM
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So received this refferal and decided to hook him up, he was concerned with fees. Cut everything since he was an A+ borrower and an easy loan. He is taking a risky HELOC and a current 15 year to one 15 year loan at 5.25%.
Here is my F-N time being wasted:
Hope you won tonight.
This is what I figured it's costing me for this loan. $3201.33 out of pocket expense
100,381.91 Mortgage payoff
+36847.19 HELOC payoff
137,229.10 What I need to borrow to pay off both loans
141,500.00 Loan amount I'm about to borrow
141,500.00 Loan amount
- 137,229.10 Actual amount needed
4270.90 is the amount over what I need to payoff both loans (out of pocket expense)
4270.90 (out of pocket expense)
+ 729.23 closing cost fee (out of pocket expense)
+ 350.00 Appraisal fee (out of pocket expense)
5350.13 Total of out of pocket expense
5350.13
- 2148.80 Escrow refund
3201.33 This is my Total out of pocket expense
From what I see, this is way higher than what you have told me before.
I did a quick figure and it will take me more than 5 yrs. to break even....NOT GOOD I won't do the loan with these figures.
I need you to figure out how long it will take me to break even. All the numbers have changed since you did it the last time.
First I said I only wanted to borrow what I need to pay off the loans, Now I'm borrowing $4270.90 more.
Then I said I just wanted to write out a check for the amount out of my pocket for all expenses, I'm now financing it. Even after I apply the $2148.33 towards the principal I'm still borrowing more than needed.
I might be missing something here, but I'm very uncomfortable at the moment with this loan.
I know this is a pain in your ass, but I want to make sure I'm not waisting my money. Give me a call tomorrow, I would like to meet up with you tomorrow so I can talk with you in person.
Spent 30 Minutes typing this:
No its cool let me break down the numbers for you:
Lines 800 – 815 - $1178 – This is what the fees are to close the loan from the lender, actual costs for loan.
Lines 1100 – 1350 - $1096.00 – This Is what the title company charges, actual costs for loan.
Total fees to close the loan: $2274.00 – This is your out of pocket expense or actual cost to refinance.
All the other fees that are associated with the loan are costs that you would have needed to pay regardless if you refinance. If they are paid to the new lender or your old ones.
This seems like a lot because you are at that time of year where taxes and insurance payments for the year are due.
Line 114 – Last years taxes that are due - $1342.00
Line 1001 – 13 months at $79.62= $1035.00 – This is your insurance payments.
Line 1004 – 2 months at $223.89= $223.89 – This is your county taxes.
These items would have been paid out regardless of refinancing: $2600.00
Subtract the $2100 escrow return from Countrywide: $500.00 Extra
Your total settlement charges are $4874.00 less the $2600 for taxes and insurance you would have paid anyways= $2274.00. So you paid a little more then 1.125% to close your loan, the average refinance in the US is 3%.
Out of pocket expense recovery time:
One Month Payment skip= $1137.00
Old 1st Principal and Interest Payment= $1024.00
Old 2nd Principal and Interest Payment= $238.00 – Variable interest – up and down, lowest in 5 years right now so I will not base on today but average.
Total Old Payment Principal and Interest=$1262.00
Savings per month= $125.00 or $1500 / year.
Total first year savings: $1500.00 + 1137.00 = $2537.00
Second year savings: $1500.00
Third year savings: $1500.00
Forth year savings: $1500.00 This is if your heloc’s interest didn’t adjust higher to inflation as it will.
Fifth year savings: $1500.00
Five year savings: $8537.00
So time to recovery is less then one year. Dude I would never put anyone in a bad loan, numbers are crunched in the beginning to ensure there is a benefit to the borrower, in your case refinancing is very beneficial. If I can’t save you money I don’t do the loan. I hope this clears everything up. I will still meet you tomorrow if you need further info.
I know it’s confusing and you want to make sure this is the right decision but one thing I’m good at is crunching numbers. I wouldn’t put any referral in a bad loan to make money, its not a financially sound move.
F-N borrowers Im looking for a new job tomorrow..........
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KHufford
5701 Posts |
Posted - 04/21/2008 : 11:17:42 PM
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Did you really call him DUDE in the email? LOL
Dont overreact, you did a good job, most people dont do mortgage for a living and dont even look into them but once every 5 years, so they dont know what you know, educate them and they will come in flocks'
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Imaloaner
98 Posts |
Posted - 04/21/2008 : 11:27:04 PM
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| Dude! Yeah he's a surfer so that's a common word. He even has me saying it now..... |
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hpmfinancial
1487 Posts |
Posted - 04/21/2008 : 11:48:03 PM
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| I think you put way to many numbers on that e-mail. I highly advise you use a software such as mortgage coach or pitch simple. It takes all the above data and makes it easy enough for anyone to understand. I do understand your frustration though, |
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mantixmortgage
2714 Posts |
Posted - 04/22/2008 : 12:24:00 AM
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| you did a good job of explaining fees to him. im sorry this aggravated you. my advice would be to not do business with these kind of people in the future if it isnt worth it to you. |
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