Posted by franny on 2/14/12 4:10pm
Msg #411753

no cost

Does anyone know where the banks add/hide the cost to a closing when they tell the BO that there is absolutely no cost to the refi.

Reply by Teresa/FL on 2/14/12 4:16pm
Msg #411756

There may be no "lender" costs, but that doesn't mean that there are no costs at all. There are usually title fees and sometimes other third party fees that are rolled into the loan and borrowers are told they will not pay any "out of pocket" costs for the loan since all fees are rolled into the new loan.

Sometimes the borrowers hear what they want to hear.

Reply by frances arnone on 2/14/12 4:20pm
Msg #411757

Thanks, Teresa that explains a lot

Reply by ME/NJ on 2/14/12 4:20pm
Msg #411758

Will always be settlement charges

As for LO and Bank fee's they can be waived. You will see this as a credit on the first page of the HUD and I think most have a limit on what can be credited.

Reply by ct on 2/14/12 5:29pm
Msg #411771

I sign many no cost loans..the APR matches the interest rate..but borrower still has to pay any daily interest fees and any impounds for taxes and insurance. These loans are sold right away and this is where the "lender " makes their money..I probably sign about 20-30 a month at no fee...but it is slowing down and I am seeing many more loans with modest fees...

Reply by sigtogo/OR on 2/14/12 7:39pm
Msg #411792

To add in my two cents to the discussion: It would be rare day indeed for a bank or LO to waive fees. This only happens under extenuating circumstances, as in someone screwed up or perhaps it’s a customer with huge deposits and a lot of clout. Banks do not work for free, nor should they, so don’t go thinking there are a bunch of benevolent banks and LO’s out there. Hahaha.
If the apr and note rate are the same then the fees have either been rolled into the loan and/or a lender credit has been obtained by the borrower accepting a higher than market rate. The borrower absolutely pays one way or another. I m continually amazed, and saddened actually, by people thinking they are getting these great deals when they are not. Teresa nailed it when she said people hear what they want to hear.
I, of course, keep my mouth shut and do the signing!!

Reply by ct on 2/14/12 11:37pm
Msg #411817

yes..not our place to advise..the interest rate obtained is between the lender and the borrower...