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Mortgage Closing
I refinanced my house today. I had 18 years left on a 30 year mortgage at 6.125% -- got a 15 year mortgage @ 3.5%. Will save ~$100,000 over the life of the loan, and my PITI is $200 less each month. Deal. But closing -- my goodness. I've closed maybe a dozen mortgages in my time, but nowadays, it is sooooo complicated, with new & complicated & redundant forms! I'm experienced with mortgages & closings, but it still took my 2 hours & maybe 50 signatures to close that loan. I just know that each form was probably inspired by some lawsuit in the recent past. And I know that each form is for the benefit of the bank before it benefits the borrower. Just had to comment. Oct 25 17 07:43 pm Link Looknsee Photography wrote: Well, they're the ones taking all the risk in lending you their money. Oct 25 17 07:58 pm Link Looknsee Photography wrote: Lightcraft Studio wrote: Well, their background checks border on invasive. Oct 26 17 08:52 am Link Looknsee Photography wrote: If I were to lend you a big chunk of money I sure as heck would want to find out as much as possible about you. Oct 26 17 12:51 pm Link I know its an ordeal but I am glad the banks have stepped it up on some things. They always in the past have pendulum swung to extremes. Early 90's you had to be a Rockefeller to get a loan. Early 2000's any beating heart and probably bunch that didn't even have that got loans all willy nilly here yah go have a quarter mill. Then CRASH! and everyone is scratching their heads. There have been loads of dooms day sayers and they had some grounding that a bigger still crash is looming. I think better stable practices have helped hold it back. Perhaps the longer they do the less devastating it may be possibly to the point of a market stability that just plain holds it own. That would be pretty nice, as long as the gubmnent doesn't come along and cause it. It all seems ok for the moment. sometimes a dreaded crash creates a new market all together bulit on the bones of avoidable folly, but that's another thread. Oct 27 17 01:12 pm Link Warren Buffet, one of the richest people in the world, says that it's easier for his secretary to get a loan than for him to get one. The difference? The secretary can confirm her income & Buffet can't. One additional note from this current experience. Here in Oregon, the property tax bills get mailed out in mid-October and were due in early November. For the property that I'm refinancing, I've been paying into an escrow account -- by closing at the end of October, I'm in limbo. The old mortgage company is sitting on the ~$14K for taxes but hasn't paid it yet, and the title company insists on getting that ~$14K from me at closing. So, I get to pay the property tax twice this year (and trust that someone is going to eventually refund me ~$14K. That will probably take months. Grrr. Lesson learned: coordinate the timing with the due date for your property tax. Oct 27 17 02:49 pm Link Lightcraft Studio wrote: nope. With some banks, the borrowers taking an enormous risk, facing almost a certainty of the bank cheating him. Oct 27 17 03:59 pm Link Eagle Rock Photographer wrote: No, the bank doesn't hold the title to the home... the buyer/owner does. The bank has a lien, which is different. The bank can't sell your home or anything like that without holding the title.... one has to default on the loan before any of that can happen. Oct 27 17 04:15 pm Link Lightcraft Studio wrote: It's not all their money. Money on deposit (checking, savings, cds, etc) are liabilities. That money belongs to the depositors. Money from sold stock is a little different. Stock holders are now part owners of the bank. And they expect dividends from their investment or appreciation of the stock's value, or both. Loans are the bank's assets. They make some of their money on the interest. For loans, the goal is to get all the money back to cover their liabilities. The bank makes money by collecting more interest than they pay out and with service fees. Oct 28 17 10:41 am Link rxz wrote: Yes, obviously that's all true. All I meant was that they're lending you the money, so they're the ones getting stuck with the problem if you fail to pay it back as agreed. If I was to lend someone big money for something, I would be the one writing the contract as best as I could to try and lessen my risk in the event the borrower defaults. Oct 28 17 11:00 am Link ...... I like the forms asking for You to verify that You were the person who signed the last form.  I tried to sell a Home to an Attorney before, He took one look at the standard P.A.R. Agreement of Sale and said 'There's no way I'm signing that' Oct 28 17 11:21 am Link FIFTYONE PHOTOGRAPHY wrote: Then they'll have yet another form.... "Was it you who signed form B confirming that it was really you who signed form A?" Oct 28 17 11:25 am Link It's the government and lawyers that have added to the burden of getting a loan. Oct 28 17 03:16 pm Link |
