Posted by MW/VA on 10/6/11 9:53am
Msg #399752

Interesting article today about lenders cutting refi costs..

http://finance.yahoo.com/loans/article/113624/new-discounts-mortgage-borrowers-smartmoney?mod=series-m-article-b

Reply by BossLadyMD on 10/6/11 10:15am
Msg #399756

I had a buyer who showed me a letter where the bank promised her no closing costs. She did not understand that that meant the closing costs were simply rolled into her new loan. Her fees were very low though.

Reply by Linda Juenger on 10/6/11 10:41am
Msg #399761

Don't ya just love it when the borrower said "They told me NO closing costs". What the borrowers only hear is NO, they don't hear the words "out of pocket". Big diff. Wish I had a nickle each time that has happened.

Reply by Notarysigner on 10/6/11 10:35am
Msg #399758

Very interesting, thanks MW/VA Appraisal fees which use to be $400.00 but now $1,100.00 being rolled back ($500.00) to $600.00. woo hoo!

Reply by MW/VA on 10/6/11 10:43am
Msg #399763

We all know the banks are making their money on fees these

days. There's no yield-spread to play with anymore. It's probably a lot like retail--mark it up & then mark it down. LOL

Reply by MaggieMae_CA on 10/6/11 10:51am
Msg #399768

How about the loans...

where all the charges (origination, title, etc.) are listed and then the borrower receives a credit back (with the exception of the interest and impounds) from the lender for those charges?

I love it when the borrower asks if they're receiving a credit back why was the charge even listed in the first place? Only thing I can think of is that by listing all the costs the lender gets to write off as expenses they are giving the borrower credit for. If expenses aren't listed, lender can't claim them.

Reply by OR on 10/6/11 11:58am
Msg #399774

Re: How about the loans...

Maggie that is a great way of saying it too. I always say that they have to show "all" the cost of getting you the loan even if they are giving you some credits back on them.