Posted on: 15th Jul, 2010 07:44 am
I'm refinancing a 377K condo currently a 6.125 7/1 ARM to a 4.75 fixed under the Freddie Mac Open Access Program, which lets me avoid PMI, since my condo doesn't appraise to give me the right Loan to Value ratio.
They want to charge me a point, plus a .75% condo fee in addition to the standard processing fees of about 2500. Am I being taken for a ride?
They want to charge me a point, plus a .75% condo fee in addition to the standard processing fees of about 2500. Am I being taken for a ride?
I don't have access to rates these days, but what I'm seeing for charges doesn't seem to be out of line. That .75 relates to a risk factor in condo financing, and it's all over the country, what with secondary market involvement. The point may or may not be a loan officer's compensation, at least in part.
Here is a what my Closing statement looks like for the refi of my condo to 30 yr, 4.75% under the Freddie Mac Open Access Program. I would LOVE to get a gut check from someone.
New First Loan from Mortgage Company: $377,500 CR
Tax Service: 62.50
Credit Report: 9.95
Loan Origination Fee: $2,695.35 (I think this includes the condo fee)
Underwriting: $550
Processing: $670
Loan Discount $3,263.71
Processing 670.00
Paid Outside Closing per Lender
Appraisal Fee $395.00
Loan payoff to Estimate need demand ($379,558.46)
Current Principal $377,436.00
Interest 07/01/10 through 08/02/10, 33 days @ $62.04 $2047.46
Statement fee 30.00
Recon fee 45.00
Paid Outside Closing
2nd Installment 2009-2010 to Santa Clara CountY Tax Collector $2 571.93
Escrow Fees 450.00
Notary Fees - 125.00
Title Charges
ALTA Loan Policy 645.00
Recording Fees 90.00
Deed of Trust 90.00
Due from Borrower (est.) 10,836.71 CR
Total $388,336.71
New First Loan from Mortgage Company: $377,500 CR
Tax Service: 62.50
Credit Report: 9.95
Loan Origination Fee: $2,695.35 (I think this includes the condo fee)
Underwriting: $550
Processing: $670
Loan Discount $3,263.71
Processing 670.00
Paid Outside Closing per Lender
Appraisal Fee $395.00
Loan payoff to Estimate need demand ($379,558.46)
Current Principal $377,436.00
Interest 07/01/10 through 08/02/10, 33 days @ $62.04 $2047.46
Statement fee 30.00
Recon fee 45.00
Paid Outside Closing
2nd Installment 2009-2010 to Santa Clara CountY Tax Collector $2 571.93
Escrow Fees 450.00
Notary Fees - 125.00
Title Charges
ALTA Loan Policy 645.00
Recording Fees 90.00
Deed of Trust 90.00
Due from Borrower (est.) 10,836.71 CR
Total $388,336.71
Keep in mind that fees in California are going to be different from every other state - I am in Connecticut and couldn't begin to justify any or all of those in a realistic sense. But the points you note (discount + origination) equal $5960 or so, which equates to a point and a half or so...not awful in terms of percentages.
Interest rate on this program highly depends on what the new loan-to-value is & credit score - what did your home appraise for and are your scores 720 or above? If it's 720+ and the loan-to-value is 97.01-105% then 4.5-4.75% would be right. If it's above 105% then that is a really good deal.
Thanks Shane. But do you think that a 1% charge for this, plus the .75 condo fee, in addition to the standard processing fees is normal? My original loan (before the Freddie Mac Open Access) was at 4.75% with no points. The only problem was that I would have to bring ~43K to the table to get my LTV down, since my place didn't appraise properly.
Yes, I took your entire loan proposal into consideration when I made my comments above. There are additional rate adjustments when doing the Freddie Mac Open Access program and the loan-to-value exceeds 97%, so you have two options, either be a higher rate with the same fees, or the same rate with higher fees.