Anyone had any luck negotiating a lower origination fee on a refi?

[popmom]

That's all. I'm looking at doing a refi to a 10 mortgage. The origination is 1.75%. Seems a bit high. Loan amount is appox 145000. Wondering if it's due to the short term. 

[sgo95]

I've refinanced twice in the last two years with Watermark Capital and their lending fee (I think that's what it's called) is a flat $1500 (30 yr loan). But both times they've given us lender credits that basically covered all costs. Our loan amount was much much higher than yours (very high cost of living area). Did you shop around for lenders?

[popmom]

1 hour ago, sgo95 said:

I've refinanced twice in the last two years with Watermark Capital and their lending fee (I think that's what it's called) is a flat $1500 (30 yr loan). But both times they've given us lender credits that basically covered all costs. Our loan amount was much much higher than yours (very high cost of living area). Did you shop around for lenders?

Not yet, but I will. The Interest rate I was quoted is better than any other rates I could find online, and even the APR actually comes out a smidgen ahead of the other lenders even with the higher origination fee. It’s such a headache trying to sort through it all.

[Scarlett]

I would not refinance. Just run the numbers on what you should pay extra each month in order to get it paid off in 10 years. That is what we are doing.  What is current interest rate vs new rate?

[KSera]

10 hours ago, popmom said:

That's all. I'm looking at doing a refi to a 10 mortgage. The origination is 1.75%. Seems a bit high. Loan amount is appox 145000. Wondering if it's due to the short term. 

It may be the loan amount as well. We were looking to do similar, and I was told our loan amount was too small for them to offer us terms to make it worth it for us.  

[cjzimmer1]

Try looking at credit unions.  I've never had to pay an origination fee with refinancing at any of them and their rates have always been very competitive.  

[Bootsie]

Is the interest rate on this new loan significatnly different than your existing loan?  Or, are you simply trying to pay off the morgage more quickly?  If you are trying to do that later, then simply paying your existing mortgage off sooner will probably be more cost effective, unless there is a large difference in the interest rate on you existing loan and current market rates.  

When we did a refinance, the fees through our existing mortgage company were lower than starting with a new company.  

[popmom]

4 hours ago, Scarlett said:

I would not refinance. Just run the numbers on what you should pay extra each month in order to get it paid off in 10 years. That is what we are doing.  What is current interest rate vs new rate?

our current rate is 3.5. refi rate is 2.3 

eta

We are already on track to pay off current mortgage in 10 years. But we have a HELOC. This way we combine the HELOC into the first mortgage, interest rate is lower than current mortgage and heloc. With extra principal payments twice per year, We will be debt free in 7-8 years with much less interest paid. The HELOC served its purpose for us--we made some much needed home improvements, bought a mobile home for our dd to live in while in college. I have crunched numbers all sorts of ways, and I think this makes the most sense. When looking at amortization, I'll be paying less in interest right off the bat compared to what I'm paying in interest on our current mortgage/heloc payments right now. The payment will be no more than the minimum heloc payment + current mort payment. I'm afraid we won't be disciplined enough to pay off the HELOC that short a time. 

I don't want to send in too much extra on principal each year because the interest is so low--I'd rather throw extra money in an index fund.

 

Edited September 12, 2021 by popmom