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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
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Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
The loan officer doing the refinance for us, or as he claims "streamline" has been deceptive from the beginning. I just got the preliminary paper and the fees are about $4000 more then what he originally claimed was the underwriter's estimate. The commitment fee seems to be out of control as it's 1% of the loan. I am just wondering if that is standard. I googled information and it seems that 1% is high and that the commitment fee may be negotiable. I am looking for some practical feedback right now.
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Posted 2/9/09 8:09 AM  |
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2kids2cats
My babies
Member since 6/05 5229 total posts
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
I am not sure if you know this - but what I learned from our refinance that we are in the process of doing that I didn't know was the following:
Part of the fees is a new escrow account set up. You will get, after the closing, a check for your current escrows. For us that will be close to $4,000 so in my mind I deduct that amount although we will have to pay it upfront.
Also, check to see if there is mortgage tax. My friend looked at my GFE and saw it there and said it shouldn't be there for a refinance. Our amount was $2,660. I spoke to the loan officer and she applied at our bank to get rid of it and of course it used to be free but now they decided to tack on a $750 charge to do it. So that will be another $2,660 we will deduct from the GFE.
She also said something about the insurance pre-pay of $1,200 for us, that it will be coming off since we are already set up with our current mortgage with insurance. She said it's just part of the standard template for GFE's.
Hope that helps a little. I freaked out too when we got the GFE that we had to sign as it was a few thousand more than the original one and she then explained all of that to me. Also, we had the appraisal done - and those fees will also be coming off, as we already paid for it. Things like that. Good luck!
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| Posted 2/9/09 8:44 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
Posted by 2kids2cats
I am not sure if you know this - but what I learned from our refinance that we are in the process of doing that I didn't know was the following:
Part of the fees is a new escrow account set up. You will get, after the closing, a check for your current escrows. For us that will be close to $4,000 so in my mind I deduct that amount although we will have to pay it upfront.
Also, check to see if there is mortgage tax. My friend looked at my GFE and saw it there and said it shouldn't be there for a refinance. Our amount was $2,660. I spoke to the loan officer and she applied at our bank to get rid of it and of course it used to be free but now they decided to tack on a $750 charge to do it. So that will be another $2,660 we will deduct from the GFE.
She also said something about the insurance pre-pay of $1,200 for us, that it will be coming off since we are already set up with our current mortgage with insurance. She said it's just part of the standard template for GFE's.
Hope that helps a little. I freaked out too when we got the GFE that we had to sign as it was a few thousand more than the original one and she then explained all of that to me. Also, we had the appraisal done - and those fees will also be coming off, as we already paid for it. Things like that. Good luck!
At this point, there is no mortgage tax because we are using the same bank. I plan on asking if they will assign the mortgage tax so I can go to another bank.
Unfortunately, we aren't really being given a "good faith estimate" because it's suppose to be a "streamline" process. The only fees that have been listed in writing, it the commitment fee of 1% of the loan and a 1/2 point which I specifically said I DIDN"T want to buy points. The guy handling this whole process is so shady. I have to question everything. At this point, I really want to see if they will assign the mortgage tax and go some place else. They didn't even put down a rate for the refinance...It's open as determined by FHA.
I'm trying to get as much info as possible.
Thanks for your information..I appreciate it. 
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| Posted 2/9/09 8:56 AM |
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ooom416354
LIF Zygote
Member since 1/09 40 total posts
Name:
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
Those fees and points are things that the brokers charge to line their own pockets. All they are doing is giving you a rate then selling your mortgage and others as securities to other banks based on how strong your loan is deemed in a banks eyes.
Don't pay those extra fees; just shop around and find the best rate you can and demand no points or extra fees. Be savvy with these people, they are only out to line their own pockets.
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| Posted 2/9/09 9:56 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
Posted by ooom416354
Those fees and points are things that the brokers charge to line their own pockets. All they are doing is giving you a rate then selling your mortgage and others as securities to other banks based on how strong your loan is deemed in a banks eyes.
Don't pay those extra fees; just shop around and find the best rate you can and demand no points or extra fees. Be savvy with these people, they are only out to line their own pockets.
He's actually not a broker; he works directly with the bank.
I completely agree about the 1/2 point and know that half of that goes into his pocket.
It's the commitment fee that I need more info on. I need to know if 1% is standard or not and if it's negotiable with the bank.
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| Posted 2/9/09 10:13 AM |
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ooom416354
LIF Zygote
Member since 1/09 40 total posts
Name:
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
Unless it's a commercial mortgage (1% is standard on those) most of the stuff included in your commitment fee are negotiable. If you are being charged an underwriting fee and a processing fee, the committment fee is just profit for the broker. As your lender what is actually included in the commitment fee and see if you're being charged again for stuff covered in the other fees. Hope this helps!
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| Posted 2/9/09 12:42 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Those that have refinanced recently....Can you please share what percentage of the loan was your "commitment fee."
Posted by ooom416354
Unless it's a commercial mortgage (1% is standard on those) most of the stuff included in your commitment fee are negotiable. If you are being charged an underwriting fee and a processing fee, the committment fee is just profit for the broker. As your lender what is actually included in the commitment fee and see if you're being charged again for stuff covered in the other fees. Hope this helps!
It does. Thank you!
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| Posted 2/9/09 1:08 PM |
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