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Discussion Starter · #1 ·
I want to take advantage of the current interest rates and get a shorter loan (15 yrs). My current loan is with Suntrust and initially, they said it would be about $2800 in closing costs. So, they sent me some documents to sign and then it was $3800. I just got some updated documents in the mail to sign and now it's $5100.<br><br>
I have been a perfect customer for this bank. You would think they would be a little competitive on pricing. They aren't holding back on any of the charges. I looked online at pricing and from what I can tell, it should only cost $2000-$4000. Little things like the 1% origination charge should only be $1100 (that's 1% of what's left on my current loan), but they are charging $1700. And home inspections should only run about $250-$300, but they are going with a $450 inspection. Plus, they are requiring title seach. Why? They just did that 2 years ago. I know it's probably required, but I think it's ridiculous.<br><br>
I really want to refinance, but I'm a little ticked at how they are ripping me off with these charges. I also applied for a loan with a different bank, but went back to this bank because originally, they were offering a better deal. I may have to rethink all this.<br><br>
Has anyone else refinanced recently? Am I overreacting? I can afford these charges, but it will put me in a bind for a while. This is a tough decision.<br><br>
Edit: is it possible that they are charging so much because of the recent regulations that keep them from ripping off customers with overdraft fees and whatnot? You know, how Bank Of America recently tried charging for debit cards in attempt to make up for lessened revenue.
 

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Discussion Starter · #2 ·
I sent my Credit Union an email asking of their offer is still available. Their closing costs were only $4000. Their interest rate was just slightly higher (3.625% vs Suntrusts's 3.5%). Both estimated monthly payments are supposedly going to be $830 + taxes & insurance.<br><br>
Update: now my credit union's interest rate is 3.75%. Looking online, that's only about $14 per month difference in payment. My dilemma now is what if I call off the loan with Suntrust and the credit union starts ballooning the costs like Suntrust did?
 

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we refied a couple years ago through our credit union and the closing costs were minimal with no hidden fees/surprises, and great personal service. We'll never use a regular bank again-credit union all the way <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)">
 

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I guess in the US, banks are getting creative with their fees because of the economic downturn. I feel bad for you guys, it seems as though you are doing it really tough over there. If I was in your situation, I would transfer my loan to another lender that's more competitive.
 

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It's probably because of the new regs enacted by Obama. everything has tightened up. our house payment is more now cuz we couldn't put 20% down on a new house, so we now have to add mortgage insurance to our mortgage and that's a couple of hundred more a month.
 

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I put exactly 20% down, to avoid MI. I refinanced a year ago to another 30 year, fixed at 4.25%. My loan is a lot bigger than yours, but I was only charged $2,000 total, which was rolled into my new loan.
 

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As long you can afford it and there isn't a prepayment penalty, it may make financial sense for you to keep your current mortgage and just pay extra on the principal each month.
 

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Discussion Starter · #9 ·
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>amhappy1</strong> <a href="/forum/post/3043631"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
As long you can afford it and there isn't a prepayment penalty, it may make financial sense for you to keep your current mortgage and just pay extra on the principal each month.</div>
</div>
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That was one of my considerations. Suntrust Mortgage has some calculators I played with. According to one of them, I would have to pay $990/mo at my current interest rate to pay off the loan in 15 years. However, refinancing at the lower interest rate would cost $943/mo, which is almost $50 less every month. I also found out I would get a rebate from my current loan for my previous payment to a one time mortgage insurance payment. Considering that refund, I would start saving more in 7.6 years by refinancing rather than paying into the principal on my existing loan.<br><br>
I have been working the numbers and reading up on everything quite a bit lately. With the uncertainty of the credit union's vague estimates and my newfound knowledge of the one time mortgage insurance refund, which I wouldn't get if I went with the credit union, that puts Suntrust back in the game. I am trying to look at the bigger picture. It may cost me about 5 grand to refinance, but it has the potential to save me about 60 grand. Overall, it seems worth it even though I still think refinancing is still a ripoff in all their charges. But there's a more important reason to refinance vs paying extra on my existing loan: I will be forced to pay it off in 15 years instead of relying on myself to volunteer to pay extra every month. I know myself and I wouldn't have the willpower to keep up the extra payments. Refinancing will make me do it.<br><br>
Delicioso, you got one hell of a deal on your refinance charges... way to go!
 

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We refinanced a little over a year ago. The closing costs weren't nearly that high, though I don't remember what they were as they were just rolled back into the mortgage for the most part. (We are still saving over $300/month in our payment - the APR went down like 2%) I would shop around. There's no reason that you need to go with the same bank.
 
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