Go to Jeff Salisbury LWGate Home Page.From: "Howard I. Cohen" <hic@world.std.com>
Subject: More - NPNC Conversation
Date: Sat, 28 Nov 1998 18:42:32 -0500
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>> Dear Mr. Cohen, >> >> Your piece in the "persfin-digest" on the above subject was quit >> interesting. I have a few questions though. First of all, are >you sure >> the customary charges such as loan origination fees/points were >not >> included in the amount refinanced such that if your outstanding >> was $96K, the refinanced amount now is say $100K? Most lenders >or their >> representatives I have come across insist on such other charges >as >> title search, transfer fees for the rerecording of the new deed, >> How do you explain the $30 total fee charged? Another thing is >did you >> have the refinance done by the same bank that has the first >mortgage? > >Thank you for your query. Yes, I have become quite expert at >reading the HUD Settlement sheet, and also after 6 refi's have >learned to confirm all the relevant parameters, like partial >payments of the mortgage because I've changed banks in the middle >of the month, starting a new escrow account - and getting back >the balance in the old one, and on and on. > >My understanding of NPNC is precisely that. No charges to me for >origination fees, title search, credit check, transfer fees, the >bank president's retirement fund or anything else. Also on the >last three times I've always refinanced the same amount. The >accrued (paid down) principal is applied to the partial interest >due because we usually don't close on the end of the month, and >since mortgages are paid in arrears the old bank must receive a >partial for the days that the instrument existed and wasn't paid. >I had a disagreement on the daily rate of a few pennies, but I let >that one slide by. It may have cost me $1.52 (19 days at @.08/day) >but I was talking to an attorney who represented the broker who >represented the bank. That's not the path to argue $1.52. Also I >usually have to lay out some cash to cover the opening of a new >escrow account. Usually 3 months, sometimes 4 months payment. But >I don't mind because I get back the balance from the old one plus >we're talking escrow. > >I never talk to a bank. I talk to a mortgage broker who earns his >fees from the bank. I've inquired about refinancing through the >bank that holds the mortgage, but they neither sounded interested, >nor offered any competitive rates. Most of the time they sell the >mortgage anyway. > >The $30. was a 'closing out the account' charge the x-bank laid on >me. I didn't expect it, but the b--s (as in banks) get you every >way they can. The FEDEX charge was a given, the broker sends out >the application kit that way. I've suggested he use US mail, but >had two sound comments. He has a tracking receipt, and wants to >give the customer as much time as possible to fill out the papers. >Sometimes that's a real chore. > >Where do you live? Mortgage brokers are like real estate people >and car dealers. They are the 'middle-men.' The commodity they >sell is the 'money' offering of a bank that has a product and rate >that might be right for you. Its always been a different bank, >and I don't care. > >I don't pay any of the bank charges up front. And I've never had >charges carried into a new mortgage. I do pay about 1/2% more >interest. But at my level I'm saving over $4000. and a little >'mortgage' math shows that I would have to hang in there for 5 >years or more to break even. > >At the price of repeating myself, try the web, try the yellow >pages, try making a few phone calls (not to banks) and try asking >a lot of questions. > >Good luck, >Howard > > >> I appreciate your quick response. >> >> Thank you, >> Tom Batta >> - -
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