How To Compare Loans Quotes When Refinancing Your Home Mortgage
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- เผยแพร่เมื่อ 27 ก.ย. 2024
- In this video, I show you how to compare lender loan quotes for your refinance. I break down all the steps so you can get the best rate for the lowest cost. The materials used in the video are linked below so download them and follow along! Enjoy.
Link to google excel spreadsheet & resources (make sure you copy to your drive or download a copy): bit.ly/3mt0cXu
Want to use United Wholesale? You most likely will need a broker. Try their facebook page to find one near you (if available): / unitedwholesalemortgage
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DISCLAIMER: I am not a CFP, CPA, attorney, insurance agent, mortgage broker, or financial advisor. These videos are for educational purposes only and I am merely sharing my opinion and experiences. Please do your own research or consult a professional!
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You should have 10000X subscribers. What is explained here is the most simplified approach for anyone looking to refinance. Everyone please shop around. You never know which deal is best suited for your situation!
Thanks kind person! Just sharing what I learn and giving back to TH-cam lol.
Great info without too much discussion. Very clear and helpful!
Glad it was helpful!
this might be the best video ever
Wellll thankssss
Thank you so much! Going through this right now. You are correct about lenders increasing the loan balance.
Great point about the “True Closing Cost” as most just look at the bottom line number. However, people should also be comparing APR% (true cost of loan annually) rather than rate% to understand the total cost of the loan annually. This is why it’s mandated that the Closing Disclosure includes the APR%, so consumer can make an apple to apple comparison between loans.
that is true. Most people don't really understand interest rate vs APR though >_
@@MillennialFinance101 May I have your advice?
OFFER 1: payoff: 179,635; loan: 184k, interest: 2.75%,monthly payment: 935; closing cost: 3,315; I can skip one month of payment;
OFFER 2: payoff: 179,635; loan: 185k; interest: 2.375%; monthly payment: 882; closing cost: 5,500; I can skip two months of payment.
@@meichunlin2184 These do not look good at all. They are bumping up your loan too much and your closing cost is still 3300/5500. You should be able to find a 2.75% with little to no closing cost. Make sure you exclude your escrow from that closing cost to understand true cost. I know it's a bad deal already because your loan amount is 5000$ more than your payoff and you still have to pay closing cost. Try boxhomeloan and watch my 5 mistakes to avoid video. th-cam.com/video/n6MSkEwBz6I/w-d-xo.html (Don't let skipped payments trick you)
@@MillennialFinance101 According to both of the offers, I don't need to pay for the closing cost and it is included in the loan amount. And they will give me some cash back. Offer 1 will give me $300ish cash and offer2 will give me 100ish.
You rock! I'm sending this video to multiple friends right now!
Cool!!
Need your help pls. I’m planning to do a refinance for 15 yrs. 2 lenders gave me 2.125%. I need help who to choose. Can I send to you the loan estimates? Thanks
Did you compare the quotes using my method?!? Send me the quote I’ll look when I have time later today
If your house has equity and is more value then when you buy it. Should you try to get a loan based on your principle balance only? How does that work?
You would always want to get a loan based on what you owe (principal balance). The value is only important for calculating loan to value and getting under 80% so you don’t pay private mortgage insurance (pmi).
Equity is the difference value and principal payment.
Thank you for the video. It is helpful. You do not discuss the origination charges in the video or on the spreadsheet. Where/how do we take that into consideration? On the estimates I have, origination charges range from $179 to $1500 for a $116,000 refinance loan.
Under lender cost
@@MillennialFinance101 Thank you!
No problem! Stay away from those % of loan lenders. A fixed cost is better lol. Cheaper for bigger loans
I just purchased last year and got a conventional ARM 30 year with a 4.375 rate. The story of why I ended up with that is bonkers but anywho. I believe now is a good time to refinance. I know there is no penalty for payoff of my loan but I'm apprehensive about having them run my credit again and the potential closing costs..should I wait. What do you suggest?
Get out of that arm ASAP.. a credit check doesn’t hurt too much and you can find free (truly free) loans for lower interest rates right now! Check my other video on how to get instant quotes
@@MillennialFinance101 thank you!
I want to refinance so o reach out to one of the loan officer , the loan company is call equity mortgage lender, they offer me 2.5% for FHA loan via streamlined and 3.0 % on conventional loan. I will love to go with fha loan. My question is what I need to ask the loan company to make sure they are not cheating me and can I call on different Leander to see what their option is before I make a choice depending on what I learn from your presentation
FHA’s have MIP for life. Factor that into the monthly payment when comparing the 2 loans.
To make sure you aren’t scammed, make sure loan balance didn’t change (should be your payoff). They do this to make it look like the loan is no cost or free.
Also check out my other video on mistakes to avoid when refinancing! I talk about all the tricks in there!
Hi, I’m a new subscriber but I learned a lot things from you so far. I’m trying to do a FHA streamline. Am I be able to send you the proposal that they sent me just to see if it’s a good option pls. Thank you! Hope to hear from you
Sure I will help when I’m free!!
What happened to the government strict regulations when comparing to the past so The pre-qualifications guidelines they are following but there’s still loopholes they can jack up on the consumer cost
everything is properly disclosed on the loan. I think it's just people overlooking things and only looking at how much money is leaving their pocket vs how much it's affecting their net worth (true cost)
If I’m going to be in my house for more than 10 years, doesn’t it make sense to buy as many points as you can to reduce interest? I could take the savings every month with points and invest it...money now is worth more than money in the future...???
Just take the money you were gonna use to buy the points and invest it instead
How are origination fees charged? Is there a limit for origination fees. I heard 1% of the total loan value. What are the things to watch it for when getting quotes for refi loans with cash out. Thank you
Just make sure the fees are reasonable and calculator what the true cost of the loan is. The cash out amount shouldn’t be paying for the loan for example
When shopping with lenders, you’re entitled to an official loan estimate per CFPB guidelines. It’s a regulated documented that the lender must issue within 3 business days of applying for a loan. Of the 4 quotes you received, only one wasn’t an official loan estimate. The dead giveaway of a on non legitimate quote is “your actual rate, payment, and costs could be higher. Get an official loan estimate before choosing a loan.” This exact verbiage is mandated to be printed on unofficial quotes. Most lenders will give you a confusing quote via email and send your loan estimate through snail mail to fulfill the legal requirement. All loan estimates should look exactly the same. This is a heavily regulated rule majority of consumers have no idea about.
In regards to comparing exact quotes, your rate, term, loan amount, and property value should be exactly the same. If it isn’t, you’re comparing apples to oranges. A borrowers immediate response will lean towards the lowest cost but it doesn’t reflect long term cost. They don’t understand the concept of “baking in closing costs” or adjusting your loan to value to simulate higher equity retention.
On page two of “closing costs details” where your costs are itemized you can run through every line item to identify discrepancies between each lender. Everything from A to D is lender controlled. Compare your assumptions and Section D as your total cost to do business with a lender and you’ll identify who has the best pricing.
The constant misunderstanding is that line items E to I are controlled by the lender. These are non lender specific. Section E is regulated by your county/state, Section F is dependent on the time of year your apply and closing date. This section can be swung around but if you were to hypothetically close with all lenders at the same time this number would be exactly the same because 9/10 the lender you’re speaking to is a Fannie Mae lender. One lender can put 5 days of prepaid interest, the other can put 25 but it doesn’t matter because it’s dependent on closing date. Additionally, when it comes to prepaid taxes this is based on the county for the upcoming fiscal cycle. Has this been paid out yet by your escrow or if you pay independently. A lender must abide by the official loan estimate quote, if not, it’s a TILA violation. Regardless of who you go through, underwriting will verify these details and every underwriter must follow the same guidelines. Section G is based on averages of your county. Most lenders platform are outdated and pull inconsistent data but 100% of the time it will be exactly what you’re currently paying. Insurance is based on your personal insurance policy, taxes is county regulated. The number of months collected is based on closing date as well. Even so, Section G will align with your current escrow account 98% of the time after underwriting and will become a wash. After closing you’ll receive a refund about 30 days of closing at max.
Unless lenders start picking out your insurance company and somehow change your county tax bracket (they legally can’t do either) if you spend too much time fixating on Sections E-H you’ll always lose out because people just don’t know any better.
Respectfully, if you had official loan estimates for all your quotes you wouldn’t need to build an excel sheet because you could compare every single line item.
These were all viewer provided loan estimates. Not for my home but yes this is good information. I’m seeing there are some standards in place which is great to see
So you recommend paying those costs out of pocket VS rolling them into the refinanced loan amount?
Or finding a low cost loan or “free” loan.
@@MillennialFinance101 I have a multi family but one lender is saying that the “system” and title says single family. Therefore they’re quoting a lower rate. Red flag?
Hmmm I know if you live in one of the units, it can be a primary residence loan so take it!
@@MillennialFinance101 if you genuinely need that cash in the moment however, what about rolling it in initially + then just making extra payments toward principal in the near future when it's more feasible? Would that be so bad?
I got a refinance quote going from 4.75 down to 2.75 on a 20 yr loan ...do you think a 20 yr loan is good?
Yes. That’s a huge savings. Depends on your balance but it’s a no brained. Lock in that low rate and save!
I’m even more confused now.I checked out UNITED...You can’t apply directly for a loan through United Wholesale Mortgage. Outside of loan servicing, UWM's products are directed towards brokers, banks and credit unions that originate loans for their borrowers.
I did get a quote from my current lender which is Penny Mac. we went through the process of refinancing. I did not receive a disclosure three days prior to closing date. we went back-and-forth about it and just canceled the refinancing .
They called and emailed me the night before closing date. The main loan officer called me about the email I sent him also many voice messages that I left that day( the day b4 closing) regarding disclosure and btw, yes They did increase my loan balance.
my payoff balance was 267,800 and New loan amount 289,800 the total closing cost was $19,505.54 the cash to close was $0 . The interest rate was 2.875 the new P&I was 1202 the old P&I was 1358 either way there total Loan cost (lineD) $8436.88 (line I) total other cost Was $11,068.66. A total of $19,505.54 -$445 that we paid for appraisal so it’s a total of $19,060.54 .
Even though we were paying zero cash to close that’s a lot of money added in for refinancing.
I I don’t understand on the examples you gave from the subscriber who sent you disclosures for comparison how he was able to get four???? Don’t you Get charge for every one of those??? And does it not also affects your credit every-time they do a hard check ??
Even now as of today I’ve been looking at other places for quotes and they all vary in interest from 3% to 2.75 to 2.625 we have a credit score of above 740, we have a good payment history , our debt is very low.
we bought the property for 295 the appraisal for the property is 314,000 the pay off loan is 267,800.
We don’t have very much cash for closing. We would like to roll it in the refinancing and the only reason is because we paid off a lot of the debt that we had when we first started refinancing process with Penny Mac.
We figured it be better to pay off the debt on credit cards and then Roll the closing cost into the refinancing.
At this point I I’m looking for quotes for the best rate and also to roll in the cost into the financing but each of them keep telling me why can quote you but we have to start the application process to get the real numbers and I keep thinking How was the guy able to do four Applications and it did not hurt his credit score.
I can’t even get any of these people to send me an estimate without them doing a hard check And filling out an application so they have on file so they have real numbers that’s what they tell me in order for them to give me an estimate and the best they can do is quote me the current rate for conventional 30 year without application
Try Loan depot for a quote. Yes you will need to do hard checks for each (I think they are actually soft checks). Put in the work and fill out the application as it’ll pay off big. That’s the only way to know you got a great deal. And wow on that scam artist company trying to take you for $19000!!!! Good luck!! There are great loans out there!!
@@MillennialFinance101 scam artist.. indeed. One for saying they sent the disclosure when I never received it and by email through secured portal. If they sent it all they had to do was resend it and not tell me they would have the the penny Mac team work on it and would either get it later that night or first thing in the morning day of closing. I don’t know about anyone else but you can’t make a big decision like that with only a couple of hours before closing.
I think it was a blessing in disguise not getting the disclosure. As far as credit check I am just worried that if I fill out several applications that it will bring our credit score down and like I mentioned $190000 was to much not to mention what about our escrow of 9500 what happened to that in refinancing??? How is that rolled in and still have over 19 grand rolled in to refinance... this is the company we currently have our mortgage with. How can they do this with a clear conscience. Totally disappointed in them.
Forgot to mention I did look into credible and box websites so hopefully hubby will check out the info I pulled but like I mentioned we just don’t have the money for closing after paying down our cc debts of a little over 20 grand down to 10 since July. We figured better to pay down as much of that debt as possible and rolling closing cost into refinancing but not no 19grand ... crazy !!! So I suppose paying of the cc debt was wise decision but it also left us like broke ass bishhhes😋 lesson learned for sure on cc debt
Paying down debt is important. If you're ready to be debt free, you may have a way with a cash out refinance. This WILL increase your balance but it can go towards things like unsecure debt. Just make sure you are discipline and not go back into debt with this (get out of jail kinda free card).
For credit checks, don't worry about these, they only lower 5 points max per inquiry and won't affect you overall. I'm pretty sure since it's for the same kind of loan, it will only count once.
Escrow balance, check out some of my other videos, i talk about how this is usually a wash since that OLD escrow balance will be refunded to you when the loan closes out due to refinance. So you'll be refunded that 9500 balance from your old loan.
If I was in your shoes, I would try to find a low cost loan (that includes escrow charges). Pay the closing cost or find one that will pay your escrow charges also (higher rate). Then when you get your escrow refund (old account), apply it towards the total debt you have.
Now you'll be debt free, have a slightly higher loan balance (about $10k on top of that 267k if things are done right) and you can just pay extra principal each month to the mortgage when you feel like paying it down faster (since you consciously know that you took some equity out to pay off debt). You can choose to invest some of your money also now that you are debt free (don't invest when you have cc debt). Paying down mortgage is important but investing is also for your future.
If you want some personal help, email me at millennialfinance1985@gmail.com. Glad to help.
@@MillennialFinance101 thank you 🙏 . I know you are a very busy person so If I can’t make heads or tails out of it I will definitely take up the offer.
Great video - I watched it more than once. A question about closing costs. You say it's crazy to roll closing costs into the loan. But wouldn't it make sense to compare the loan rate to current market returns? I'd rather roll in closing costs at a low % and put my funds in a mutual fund.
Don’t mix refinancing with investing because with that logic, you should just pull out all the equity and toss it into the market. Keep things simple and separate!
Great videos. I can't thank you enough.
Just wondering, could you please explain to me about a new government law for refinancing? (Extra closing cost $1,500)if im right
Yes, it's essentially an additional fee they are charging banks when they sell off their loans to secondary markets (freddie mac/etc). Most lenders will end up passing it off to the customer but many have not set this up yet and will most likely eat the cost until they are ready. So refinance now before that happens!!!
@@MillennialFinance101 I just finished watching your other videos. Loved it and I learned so much. What's your best prediction if my credit score is at 740 and my partner is at 760(whats the best interest rate/APR should I get?
@@joyrajagukguk7462 you should be getting the best rates. 2.5-3.0 for 30 year fixed. It's going to depend how much you borrow and if you're less than 80% LTV.
@@MillennialFinance101 all your videos are great. I am loving it. The house was bought at 310,000
5% down payment. As this month principal balance is $281.000.
I am thankful and grateful for your time.
@@joyrajagukguk7462 do you think your home has appreciated over 310,000? If so, you might be able to knock off your PMI. That's a good reason to refinance also.
You should be getting good quotes for that type of loan amount. I was able to get quotes for 2.5-2.75% for example for my 252,000 mortgage.
I'm gathering quotes for refi but I'm having a difficult time trying to compare them with Boxhomeloans because of their 'Appraisal Fee" and 'Lock Cancellation Fee' as I try to lock down a rate. I don't want to lock down the rate and pay these fees if I decide to go with another lender. Does this concern of mine make sense? lol
Don’t lock with any lender unless you’re ready to move forward with that lender. The appraisal is likely waived by boxhome these days. Good luck
@@MillennialFinance101 thanks! appreciate the help
Is going from 4.75 to 3.75% during refinancing a good deal or should one continue to shop around?
Should be able to get 3% if you shop around.
So if one can afford to pay those closing costs and keep the pay off balance the same it’s wiser to do so?
Definitely. But make sure to calculate that break even to make sure the closing cost makes sense or wait for rates to go down so you can find a similar rate with less closing cost.
In quiken is charching points 1.5 is correct?
Not sure. These change daily
I’m learning a lot of your videos. I just refi 3.8 down to 2.6 with no cost you think that okay with 800 credit score. Or should be a better rate
Sounds like a great rate to me!!
Hi is it good idea to refinance with your current lender or go with mortgage broker? I need cash out $50k out of my equity though my lender says approximately $10k for breaking my 5 year fixed term @2.39 rate. One of the personal offering me 5 year fixed @ 1.39. I tried heloc route but interest rate is 3.6 variable. Any advise is appreciated.
Shop around. you owe nothing to your current lender. If they can't beat the rate, move on! On your new loan app, just ask for 50k over your principal balance which is essentially a cash out. Just make sure it will appraise.
@@MillennialFinance101 Thanks a lot
What does it mean if the total cost is $0.00? I remember you mentioned to look for a (-) number of total cost but with this one it doesn't have (-) but $0.00 cost. Does this mean I will nothing for total cost?
Oh and I got this quote from using your link Box home loan
As long as your balance is same and $0 cost excluding escrow, then yes it is no cost loan
Great Video!! Very helpful. I’m also in the middle of refinancing and wanted to see if you have an opportunity to tell me what you think about my current loan offer. We’re dropping our interest rate from 4.25% to 3.0% but I feel like our closing cost is a bit high and feel like those junk fees might be the reason. Please let me know if you can browse thru our offer please I’ve already referred your videos to a lot of my friends trying to refinance now. Lol
send me an email. My email is in my channel page in info. I'll get back to you when I can!
ALBERT MENDEZ Were you able to get a higher rate to cover closing cost?
Is a 2.375 refi to 15years a good rate right now?
Yes if it’s low closing cost and principal balance doesn’t increase
How much they charge you for closing fee .
Please do know anything about AmeriSave
I do not :(
Can you refinance directly with united wholesale mortgage? i look it says its from brokers only. unless im looking at it the wrong way
I'll be honest, I have no idea. It does look like it requires a broker though. Try their facebook page! facebook.com/UnitedWholesaleMortgage
I have an HHA loans and just found out I have to repaid 5000 if I want to refinance. During closing they told me it was two years. What should I do?
Find a loan that will pay you so it will offset that $5000 you were given at some point. It sounds like a down payment assistance program?
@@MillennialFinance101 Thank you for replying! yes, it was an assistance loan.
Another option is to just get a new loan that will cover your primary loan and the assistance amount. Then it’ll be one loan and not 2 loans on one home. Hope that makes sense. Either way, it still makes sense to refinance. Just take your current payoff + 5k and call that the new loan balance since that’s what you really owe.
@@MillennialFinance101Thank you for your help! We appreciate it very much!
Silly question. How do we get different quotes from 3 or 4 lenders without each one doing a hard credit check on you? Is there a way to just get different quotes from different lenders from going through the whole application process for each one?
I need your help, can I email you please?
Yes you may. Millennialfinance1985@gmail.com
if you refinance with your current lender are there any cost savings on the fees? i'm trying to figure out why my current lender's offer is 2K less than all the competitors so far. I cannot imagine US Bank truly being this competitive.
No savings as far as I know. It’s not listed so no real loyalty points here
$3447 add to principal
How come you didn't include Box Home Loans? You've mentioned they were pretty good.
This was a viewers quotes. The box home loans was be similar the to United wholesale quote in terms of fees
Millennial Finance 101 If there’s an escrow account, it would be very rare to see someone have a true no cost correct?
JASON CHENG not necessarily. Since one escrow account can offset the other. Or lender credits can even pay the escrow prepaids and you could get paid to refinance in that scenario
Millennial Finance 101 However, if I do not have an escrow account and I choose a higher rate to have lender cover all the fees, this would be a true no cost refi, I would be paying zero out of pocket correct?
Millennial Finance 101 Lastly, I love the box home loans rate viewer! What do you think of a 30 year fixed conventional refinance for 3% with $0 fees?
Why would you say its not a good idea to roll the closing cost fees into the new loan? Im not going to stay in this loan for 30 years....I will probably refi at some point in next 10 years. I would be saving money no in the end no?
I don't know what a loan is.
Unfortunately, it's needed to buy a home these days. Otherwise you'll be saving/investing for years to have enough to buy something. It's made buying a home easier, therefore raising the price of homes all the way to the point where you must have a loan to purchase one.
Can I speak to you for a loan against equity of my first home and mortgage for buying a second home in Brampton.
I wouldn't but if it's a steal, then maybe I would! You don't want to be over leveraged but if it's a steal, then sure! Whatever you do, don't go over 80% LTV on your first home mortgage.
Box home loan quote me rate 2.5 ,$4000 closing fee, and I borrow $175000, they add the closing fee to my loan... do you think I should use them?
I would get a 2.625 loan for near free instead of 2.5 for $4000. Yes they are very good!
I made a mistake. I locked the rate at 2.5%, APR 2.673% & point 1.101($936). Loan amt $85000 & total cost $3082. Should I cancel the loan? cost is $495.
Umm that’s a lot of money for a $85k loan. Not sure losing $495 is wise either though.
@@MillennialFinance101 Any suggestion? Thanks for replying so quickly. By the way, that cost is from Boxhomeloan
@@friendt2712 What's the old rate you have? Is that at 15 year loan rate?
@@MillennialFinance101 my current rate is 5% until 2044. And the new rate 2.5% is for 30 yrs.
I'm a fan of locking in low rates like 2.5. Just make sure the break even is less than 2 years, which this one is close (depending on what your old rate is). I wouldn't sweat if you can cover the closing cost and plan to stay there for a few years to get your closing cost back from interest savings.
im comparing loan quotes now and im finding it difficult to parcel out the various charges into the three buckets because of how the offers are presented. im spending so much time getting clarification on what various fees are etc. my current lender is coming in way lower than the rest and i suspect they are hiding fees somewhere and i wont be able to see it until we're well along in the process. US banks and lenders really make this so much harder than it should be for homeowners.
Check the loan balance on all the loans. I bet they are all different. Make sure it’s all apples to apples and the same number, ideally the balance of your current loan
For those refinancing, please remember your current balance is NOT the actual pay off amount. Your actual amount is higher
Yes the pay off will include interest up to the pay off date
Good job!
Thanks
Planning on refi my house during this pandemic cause of low mortgage rates and also wanted to take out cash for upgrades in home. Couple of questions. Is this a good time to Refi? Is taking out cash a bad idea? What's a good Refi company?
Check out my other video on mistakes to avoid in refinancing! I answer all those in there!
We're on the same wave length. Literally just made loan video that compares them but in a different way. I appreciate you sharing real examples with your subscribers paperwork. Makes it so much easier to understand.
P.S. How's your brother doing in Seattle? 🏡👍
he's occupied with other things right now haha. I haven't told him about you yet! I think he lives in renton area or downtown seattle. I'm not sure myself but it seems far from you!
Just checked out your video and yes, that's more for the new home buyer getting a loan and deciding on what loan to get depending on their situation :). I wanted to make a different kind of video since this one doesn't exist on the internet yet and is a scary and confusing topic for many. I'll probably make a new video specific to new home buyers to review fees and what everything is because I'm sure that's confusing too! Keep making those videos! They are great!
Hi, Where is the excel comparison. You said its on the link below to download.Thx
Link to google excel spreadsheet & resources (make sure you copy to your drive or download a copy): bit.ly/32DZG1O
Minh, quick question, I got an estimate without a date from an officer. Is that a red flag?
Not really but how are they calculating anything without some kind of closing date for the estimate
Do you have an email? I'd like to ask a few questions, if you don't mind.
TS Lee check my channel info. My email is in there