quinn,
This will be up to the individual lender and their programs.
Sometimes a refi costs can be rolled into the loan, so it is less out of pocket for the buyer to close.
Your question is too broad to give a specific answer.
There are just too many variables to come up with an exact answer........things like the buyers credit score, what type of LTV they are seeking in a loan, and of course, payment history, and how much the buyers have into the home already.
Sorry, but this is a question best addressed by a mortgage broker looking at a specific buyers loan application package.
Call a local broker and they might be able to tell you a basic guideline.....but I would not count on it.
Thanks Jim,
You've answered my question more than you know.
About the LTV, if they are trying to get 100 and their credit score only allows for 80% that means they'll have to come up with a 20% down right? Am I even close to being correct?
Yeah. All depends on credit scores and quality of credit (ex. Is there charge offs, banktrupcy, or other issue)
80%LTV, but is it 80% CLTV or 100% CLTV? If it is 80% CLTV, that is all you can get. If it is 100% CLTV, you are allowed to get 2nd mortgage or seller 2nd, if the program allows it.
There are some lenders who would give you 80/20 with 575 middle score.
Ok, good info!!
Is CLTV Credit-loan to value?
So, if they can't re-fi to totally cash me then they lose out on the deal right? Any way to help them do a re-fi where I get fully cashed out. How do seller seconds work?
Thanks for this info, this has cleared up questions I've had for a long time and haven't gotten clear, concise answers for. At least answered in a way that I could fully understand.
seller 2nd is just like regular 2nd mortgage. Seller and buyer agree the term and rate, and there will be serurity deed, note, HUD, and other docs. Security deed should be recorded in the county court house.
When buyer does not have enough money to put down and seller has a lot of equity, this works well as long as seller 2nd is approved by a lender.
You have a complete misunderstanding of the original guy's question. It was a simple question.-
Are the costs associated with a refi the same as a conventional close? If not,what are the differences?
First of all I know the difference between a conventional & non-conventional loan, When he said conventional close I knew what he meant and didn't bother correcting him and instead tried to answer his question.
Secondly everbody mentioned including myself that different loans form different lenders, brokers etc. will have different closing costs.
My argument to try and answer his question in simple terms was that whether it's a refi or purchase - if it's the same loan program (for example a 30year fixed from Wamu), with the same lender, broker, title co. etc & obviously the same borrower, it will have about the same closing costs. The only added costs on purchase might be the pest inspection, and survey. Which is what he asked, and answers his question.
Again he wasn't asking whether not different companies charge different fees- that goes without saying.--
--It sounds like your partialy questioning the premise of his question- which makes sense, but I think he was talking in general terms.--
Also all that stuff you said about pre-approval's and the difficulty's of being a broker etc. are true enough, but that doesn't change the fees- I was a broker for many years before getting into the title industry. Each lenders fees are usually fixed they charge a doc prep, underwriting, tax cert, & maybe a couple other fees but you no exactly what they are when you prepare the GFE(unless you don't know what lender your sending it too)-- you should also know what your title company, appraiser, intangible taxes, recording etc and what you will charge. GFE's aren't exact but if you're a good broker you should get it real close. and the only reason it should change significantly is if the deal has to be restructured completely or you have to send it to a different lender. My motto was always under promise and over deliver. I hope your not a bait and switch guy.
You also mentioned Property taxes & Home Owners insurance. -- your right that if you are escrowing, then depending on when they are due
you may have to pay more or less into the escrow account..-- if you are not escrowing then it doesn't apply. -- but this is something that is property specific regardless of your lender, broker etc., besides as you said this changes with the date of close, not whether it's a purchase or refi.
Let me ask you a question - would you as a broker charge one borrower getting 2 loans from the same lender with the same (credit/ltv/terms everything) different fees if one where a purchase and one was a refi.?- you could if you wanted to, but in that situation I wouldn't, nor would I allow you to if I where the borrower.
Your whole post was presumtuous, and rude. If you disagree with someones post - than just say I disagree this is what I think.-- Trying to insult everyone in the forum who you know nothing about and have never met is foolish. It just makes you sound like a jerk.
-- Oh and as far as my company is concerned I charge the same fees on refi's as I do on purchases-- One exception. In FL you would have to add doc stamps for the deed -- which is basicly a tax.
Thanks for replying to my question. I know the question was very general and didn't ask specifically what I wanted to know, but from reading your answers I got the question to my question. Lendinghand, it's not hardly that I don't know about the financial aspect of investing, it's just that I have never done a re-fi before. I'm not hardly a stupid individual. Before I undertake any projectI do as much research as possible, thats what this forum is all about or have you forgotten? I'll ask as many questions I feel like regardless of who thinks there ridiculous or regardless of who feels that I don'tknow what I'm doing. However, that would be a very bad assumption. I don't know everything about REI but then again, thats why I'm here. Why are you here? Are you here to help or make people feel enept?
Baytitleguy- Thank you the info. I got alot of useful info from your answer and everyone else's
No problem quinn, I just hope I helped-- I am sure I'll have some questions that you can help me out with. Anyway -- no room in here for bad attitudes. Good Luck with your loan.
quinn, i have read a lot of your post on here for the past 5 months. i notice you have come a long way. i also started about the same time as you and it is incredible how much i have learned off of this site and it seems like you have too. i started 5 months ago and i have 5 deals going right now. i am going to close one nov. 1st that will net me 22k. i have a lot of others that will bring me about 100k by jan. 1st. i have to thank all of the people that make up this site. i started from nothing and i am doing great. how is it going for you quinn? have you completed any deals? well, thanks again for everybody that makes up this site. Ryan
Hi ryand,
I've been reading up on you too and you ARE doing good. Thats what this is all about. I'm doing pretty well too. Currently I have 5 properties, just got the 5th about 3 weeks ago. When I started out I was buying foreclosures and leasing back to the previous owners. I don't like this, I'll never do that again. If I knew then what I know know. I presently deal with distressed homeowners who are not in foreclosure but in financial trouble. I still want to try and do subto deals but I first need to sell this house I just bought so I can actually start that way of investing.
I must say that I know what I know because of these people here. I truly appreciate them(the ones that take their time and answer all of our questions over and over and over again, sometimes the same question in different forms)
quinn, yes i am very thankful to all of the people on here and especially a lot of the guys with hundreds of post. after being on this site for a while now i have noticed that these people are answering questions that have been asked multiple times. all i can say is thank you everybody, Ryan
quinn,
This will be up to the individual lender and their programs.
Sometimes a refi costs can be rolled into the loan, so it is less out of pocket for the buyer to close.
Your question is too broad to give a specific answer.
There are just too many variables to come up with an exact answer........things like the buyers credit score, what type of LTV they are seeking in a loan, and of course, payment history, and how much the buyers have into the home already.
Sorry, but this is a question best addressed by a mortgage broker looking at a specific buyers loan application package.
Call a local broker and they might be able to tell you a basic guideline.....but I would not count on it.
Take care,
Jim FL
[addsig]
Thanks Jim,
You've answered my question more than you know.
About the LTV, if they are trying to get 100 and their credit score only allows for 80% that means they'll have to come up with a 20% down right? Am I even close to being correct?
Thanks
quinn
Yeah. All depends on credit scores and quality of credit (ex. Is there charge offs, banktrupcy, or other issue)
80%LTV, but is it 80% CLTV or 100% CLTV? If it is 80% CLTV, that is all you can get. If it is 100% CLTV, you are allowed to get 2nd mortgage or seller 2nd, if the program allows it.
There are some lenders who would give you 80/20 with 575 middle score.
Ok, good info!!
Is CLTV Credit-loan to value?
So, if they can't re-fi to totally cash me then they lose out on the deal right? Any way to help them do a re-fi where I get fully cashed out. How do seller seconds work?
Thanks for this info, this has cleared up questions I've had for a long time and haven't gotten clear, concise answers for. At least answered in a way that I could fully understand.
quinn
CLTV=combined loan to value
seller 2nd is just like regular 2nd mortgage. Seller and buyer agree the term and rate, and there will be serurity deed, note, HUD, and other docs. Security deed should be recorded in the county court house.
When buyer does not have enough money to put down and seller has a lot of equity, this works well as long as seller 2nd is approved by a lender.
In that case I wouldn't get fully cashed out then right? Or I would get cashed out minus the amount I take out for a second. Is this correct?
quinn
Lendinghand,
You have a complete misunderstanding of the original guy's question. It was a simple question.-
Are the costs associated with a refi the same as a conventional close? If not,what are the differences?
First of all I know the difference between a conventional & non-conventional loan, When he said conventional close I knew what he meant and didn't bother correcting him and instead tried to answer his question.
Secondly everbody mentioned including myself that different loans form different lenders, brokers etc. will have different closing costs.
My argument to try and answer his question in simple terms was that whether it's a refi or purchase - if it's the same loan program (for example a 30year fixed from Wamu), with the same lender, broker, title co. etc & obviously the same borrower, it will have about the same closing costs. The only added costs on purchase might be the pest inspection, and survey. Which is what he asked, and answers his question.
Again he wasn't asking whether not different companies charge different fees- that goes without saying.--
--It sounds like your partialy questioning the premise of his question- which makes sense, but I think he was talking in general terms.--
Also all that stuff you said about pre-approval's and the difficulty's of being a broker etc. are true enough, but that doesn't change the fees- I was a broker for many years before getting into the title industry. Each lenders fees are usually fixed they charge a doc prep, underwriting, tax cert, & maybe a couple other fees but you no exactly what they are when you prepare the GFE(unless you don't know what lender your sending it too)-- you should also know what your title company, appraiser, intangible taxes, recording etc and what you will charge. GFE's aren't exact but if you're a good broker you should get it real close. and the only reason it should change significantly is if the deal has to be restructured completely or you have to send it to a different lender. My motto was always under promise and over deliver. I hope your not a bait and switch guy.
You also mentioned Property taxes & Home Owners insurance. -- your right that if you are escrowing, then depending on when they are due
you may have to pay more or less into the escrow account..-- if you are not escrowing then it doesn't apply. -- but this is something that is property specific regardless of your lender, broker etc., besides as you said this changes with the date of close, not whether it's a purchase or refi.
Let me ask you a question - would you as a broker charge one borrower getting 2 loans from the same lender with the same (credit/ltv/terms everything) different fees if one where a purchase and one was a refi.?- you could if you wanted to, but in that situation I wouldn't, nor would I allow you to if I where the borrower.
Your whole post was presumtuous, and rude. If you disagree with someones post - than just say I disagree this is what I think.-- Trying to insult everyone in the forum who you know nothing about and have never met is foolish. It just makes you sound like a jerk.
-- Oh and as far as my company is concerned I charge the same fees on refi's as I do on purchases-- One exception. In FL you would have to add doc stamps for the deed -- which is basicly a tax.
Thanks for replying to my question. I know the question was very general and didn't ask specifically what I wanted to know, but from reading your answers I got the question to my question. Lendinghand, it's not hardly that I don't know about the financial aspect of investing, it's just that I have never done a re-fi before. I'm not hardly a stupid individual. Before I undertake any projectI do as much research as possible, thats what this forum is all about or have you forgotten? I'll ask as many questions I feel like regardless of who thinks there ridiculous or regardless of who feels that I don'tknow what I'm doing. However, that would be a very bad assumption. I don't know everything about REI but then again, thats why I'm here. Why are you here? Are you here to help or make people feel enept?
Baytitleguy- Thank you the info. I got alot of useful info from your answer and everyone else's
quinn
Baytitleguy and lendinghand
No problem quinn, I just hope I helped-- I am sure I'll have some questions that you can help me out with. Anyway -- no room in here for bad attitudes. Good Luck with your loan.
quinn, i have read a lot of your post on here for the past 5 months. i notice you have come a long way. i also started about the same time as you and it is incredible how much i have learned off of this site and it seems like you have too. i started 5 months ago and i have 5 deals going right now. i am going to close one nov. 1st that will net me 22k. i have a lot of others that will bring me about 100k by jan. 1st. i have to thank all of the people that make up this site. i started from nothing and i am doing great. how is it going for you quinn? have you completed any deals? well, thanks again for everybody that makes up this site. Ryan
Hi ryand,
I've been reading up on you too and you ARE doing good. Thats what this is all about. I'm doing pretty well too. Currently I have 5 properties, just got the 5th about 3 weeks ago. When I started out I was buying foreclosures and leasing back to the previous owners. I don't like this, I'll never do that again. If I knew then what I know know. I presently deal with distressed homeowners who are not in foreclosure but in financial trouble. I still want to try and do subto deals but I first need to sell this house I just bought so I can actually start that way of investing.
I must say that I know what I know because of these people here. I truly appreciate them(the ones that take their time and answer all of our questions over and over and over again, sometimes the same question in different forms)
quinn
quinn, yes i am very thankful to all of the people on here and especially a lot of the guys with hundreds of post. after being on this site for a while now i have noticed that these people are answering questions that have been asked multiple times. all i can say is thank you everybody, Ryan