DH and I are interested in refinancing our home. Our bank gave us a good quote and when I went to apply for the loan online I found it there is a $350 non-refundable deposit just to apply for the loan. Our bank is a trustworthy one, but I was just wondering if this is standard practice. Anyone have experience applying for refinancing loans and can weigh in? Thanks!
-
@Katrocap: I'm pretty sure we did - but it went towards the closing costs. I think it's pretty standard these days.
-
Yes, ours had this and it was $500. I think it went towards paying the appraisal or something else in the closing costs.
-
@dagret: @sunny: Thanks for the input! I was just kind of applying on a whim today so was a little shocked to find out I had to pay $350.
-
We are looking into refinancing from a 30-year to a 15-year and have had several applications run to compare rates and total costs. None have charged a deposit or mentioned a deposit. The out of pocket closing costs vary a bit by lender, but none have asked for or required a deposit of any sort to apply for the loan.
-
@Katrocap: @yoursilverlining: I think that charge was made when we wanted to lock our rate.
I got quotes from several lenders and nobody wanted any money upfront for that. But once we settled on a lender and wanted to lock the rate I believe that is when they collected the deposit.
@yoursilverlining: We refi'ed to a 15 year 2 years ago. I was so freaking excited to see the total interest payments over the life of the loan go down 6 figures!!! And most of our payments now go towards principal and hardly any for interest. To make shopping between lenders easier, we did a no cost refi (eg. Cost rolled into the loan).
-
I think many mortgage companies charge fees like that but they're not always required. See if you can find a company that doesn't or some companies will let you negotiate your fees.
-
Standard across banks/mortgage companies. You can try to negotiate the fees, but typically there is always a non-refundable application fee/deposit.
Reply
Subscribe to our newsletter
- Google Plus
- Stumbleupon
- Twitter
- Facebook
- Pinterest
- Favorite0
7 comments