When getting a quote, always have the broker tell you what you would pay if all fees are waived (and I mean waived and not added to the loan) and no points. Then you have a baseline to compare other options.
This was my sister's latest requirement in series of changing requirements. I asked her what she wanted and that is what she told me.
This whole refinancing thing is a real mess. There are ONLY three customary and reasonable fees in the refinancing business; credit history/check fee, appraisal fee, and title search fee. These are necessary fees the mortgage company will invariably incur ON YOUR BEHALF and must pass on to you. They have to pay for these services by obtaining them from other companies; credit reporting service, appraisal service, and title search company.
NO other fees are incurred on your behalf. Any other fees are an attempt to blow smoke up your ass, in the same way that internet retailers low-ball their prices then try to make the costs up in their shipping, refinancing companies low-ball an interest rate to 'bait' you then make up the difference in NON-NECESSARY and NON-CUSTOMARY fees.
It all starts with one unethical company who low-balls their prices or interest rates in this deceptive way. Then a lot of people say "Ooooo, that's a lower price or interest rate" and gravitate to that company believing this is the better deal. They know this will happen because that's the figure that gets people's attention and what people think is most important. Then other companies lose business to this practice even though they may actually have the better deal when all costs are figured, so they see no other way to compete except to engage in the same unethical and deceptive practices.
The result for the consumer is that you cannot look at the terms from different companies and instantly compare what you're getting. You have to sit down with a calculator or pen and paper to see who is trying to screw you when all the costs are included and all the interest has been paid. There should be a law eliminating this so you can make instantaneous and direct comparisons.
This is not even a legitimate way for a company to reduce costs that translate into savings to the customer, its simply a system that shifts costs between the front-end and back-end in a zero-sum game. Its not a system that enables companies to offer a better deal, its a system that is used to out-fool the consumer as to who has the better deal.
If anyone has questions about credit ratings, rates, re-fi's, home loans, etc. just let me know...I work for a big mortgage company in CA. Post or PM me.
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