Posted on: 01st Apr, 2011 09:40 am
About 2 months ago I started the process of a refi (rate not locked yet). I recently found out that my 2nd mortgage charged me a $200 subordination fee. I only discovered this because on my last mortgage statement less money than usual was applied to principle, so I called them asked why- they told me I'm working off the $200 fee. (I barely remember signing a subordination document to begin with, but certainly the bank fee wasn't disclosed- I would have remembered that.)
Now though I'm in the variable rate of my ARM, and my rates is 6mo libor + 2.25%=2.75% right now. Refi for me would be approx 5.5%, and based on historical libor rates and forecasts, I'm betting it will be 3-4 years before my ARM goes over 5.5%, so I'm now thinking about not refiing.
Questions:
1.) Did my 2nd mort bank charge me the subordination fee prematurely?
2.) If I end up not refiing, can I get that subordination fee back?
Thanks.
Now though I'm in the variable rate of my ARM, and my rates is 6mo libor + 2.25%=2.75% right now. Refi for me would be approx 5.5%, and based on historical libor rates and forecasts, I'm betting it will be 3-4 years before my ARM goes over 5.5%, so I'm now thinking about not refiing.
Questions:
1.) Did my 2nd mort bank charge me the subordination fee prematurely?
2.) If I end up not refiing, can I get that subordination fee back?
Thanks.
hi terri,
as you started the refinance process, the second mortgage lender charged you the subordination fee. however, i think that he has charged you the subordination fee prematurely. you should get a refund if you do not go for refinance. you should speak to your second lender regarding the same.
thanks
as you started the refinance process, the second mortgage lender charged you the subordination fee. however, i think that he has charged you the subordination fee prematurely. you should get a refund if you do not go for refinance. you should speak to your second lender regarding the same.
thanks
I would agree they charged you prematurely. I'd be really ticked if they charged me upfront and then a $200.00 subordination fee shows up on the refi settlement statement at close.