Refi ?

[Boozer]

My father is planning to do a remodel and add on on his home. He is looking to refi and owes 23,000 the total amount of the loan on the refi will be 115K.
We just got a quote from a lender and they are saying they will give an interest rate of 5% which seems pretty good but they are asking for $5500 in closing costs. That is 5% of the loan and seems to be very high in my opinion. This is with a middle FICA of 789.
Does this seem right to you guys?

[Brady Bunch]

That is way to high of fees! Have him give me a call! I can do it or can and will send him directly to a lender for the best deal possible! Happy to help out the ***boat peeps.
-Greg

[Boozer]

BTW the company is called Newport Lending. I am waiting right now to here back from the loan guy I told him with fees that high there is no way we will do business with him so he is checking with underwriting to get the closing costs down. I'm thinking if he cant get closing costs down to $2000 then no deal with him. Not to mention we already out of pocketed the $350 appraisal fee.
If this guy doesnt come up with a reasonable number Ill shoot you a PM Grape.

[Outnumbered]

My father is planning to do a remodel and add on on his home. He is looking to refi and owes 23,000 the total amount of the loan on the refi will be 115K.
We just got a quote from a lender and they are saying they will give an interest rate of 5% which seems pretty good but they are asking for $5500 in closing costs. That is 5% of the loan and seems to be very high in my opinion. This is with a middle FICA of 789.
Does this seem right to you guys?
Boozer, rates and points are like a balance scale. The more money you thow at the points the lower the rate. Its called buying down the rate. If its a true 30 yr fixed fully amortized conventional loan that does not sound way out of line at 5.0%.
If you want zero closing costs you will pay a higher rate. The lender gets rebate on the higher rate that they use to cover closing costs. There is no way to get out of paying title, escrow, processing, and underwiting fees. If you don't pay them up front you will pay in the rate. You may not know you are paying them if they are paid by the lender via your higher rate. Get it?
Ask for a "Good Faith Estimate". It has to be disclosed to you what you are paying in fees at time of closing. This will list processing, escrow, points, etc.
Get three quotes and compare. Be sure apples to apples and you are not comparing ARMs to 30yr fixed etc.
I'm sure there are 3 loan peeps on these boards that can help you out.
Good luck,
OL

[Boozer]

The rate is 5.125% APR.
0 points.
Here's the list of prices for stuff.
1150.00 origination
60.00 credit
675.00 Processing
700.00 Underwriting
550.00 Administration
159.00 10 days interest
183.00 6 months insurance
147.00 6 months tax
530.00 Escrow
175.00 Notary
132.00 Title
100.00 County recorder
I'm only coming up with 4561.00 but the guy said $5500.00 on the phone. But 4561.00 still seems like a lot.

[Outnumbered]

The rate is 5.125% APR.
0 points.
Here's the list of prices for stuff.
1150.00 origination
60.00 credit
675.00 Processing
700.00 Underwriting
550.00 Administration
159.00 10 days interest
183.00 6 months insurance
147.00 6 months tax
530.00 Escrow
175.00 Notary
132.00 Title
100.00 County recorder
I'm only coming up with 4561.00 but the guy said $5500.00 on the phone. But 4561.00 still seems like a lot.
Tell them to drop the $550 admin that is a BS fee. The rest looks straight up. If its a 30 year fixed with NO PRE-PAYMENT PENALTY then that is a fair quote. You don't have to come in with cash. Roll it into the loan. No worries.
OL

[Boozer]

15 year fixed. And yes its going to be rolled into the loan.

[Outnumbered]

Check this out for comparison (http://www.hsh.com/metstsmp.html)
ps 1 point = 1% of the loan amount.
OL

[PUMPNSQUIRT]

Booze,Is Dad in Cali or CO ? I've got 4.75 right now knocking off approx 2k

[Outnumbered]

I thought he was talking 30 year fixed. It would be a good deal on a 30 but a so-so deal on a 15.
OL