“It has to be true (or at least half true) because I read it on the internet” yeah right! One of our clients is in the process of refinancing their house on a 15 year fixed rate loan, they requested that we lock the rate in, which we did (let the buyer’s remorse begin or for you psychology majors, Cognitive Dissonance). We told him that his total transaction costs all in was going to be somewhere between $3200 and $3400.  Hi ho hi ho to the internet he goes, never mind it wasn’t even on the same day. He sends a copy of us a web page that he finds and it said the lender fees were $2349 and he wanted us to match the fees. Rule number 3 in sales “Never negotiate with a phantom” and rule number 4 is “Only negotiate on apples to apples basis.” We go to the web site plug in the borrower’s scenario and yes the LENDER FEEs are $2349. However in the heading in the very next column was “Closing Costs,” when you click through on that column it added $1500 to the lender fees. $2349 + $1500 = $3849.  Even at the high end of our estimate our costs were less. Another trick of the internet lenders is to show you discount points and then somewhere in the smallest font possible they disclose that there is an origination fee. As we have said before if someone is offering a better bona fide deal than us, we will tell you to take the deal. You could wind up like a customer we talked to about two years ago, that did not like what we had to offer and they are still trying to get a mortgage.

Chase Bashing Part II

A while back we had to bash Chase regarding their false claim of the “Mortgage that pays you back” but charges you a higher rate. Chase has earned another bashing.  If a client has a second mortgage with Chase and would like to refinance their first loan, Chase needs to complete a subordination agreement, which means they agree to go back into second position. Every other lender will tell us their policy up front with regard to the maximum combined loan to value, but not Chase. In most cases they require the customer to spend $400 on an appraisal and send them the paperwork with a check for $250. If they keep your check they will subordinate. If they send back your check its “game over”, you just wasted $400. Other lenders tell us what the CLTV is and using free resources we can determine if the scenario is going to come together. Could someone tell us if Chase is on the “To big to fail list?”   


This does make sense!

OK some good news, we talked about how wonderful FHA streamline refi’s are. We have also talked about how much of a pain FHA condo’s were too. What we did not tell you is that if a condo owner has a current FHA loan it does not matter if the condo project is currently approved. There is no appraisal on a streamline refi and the only concern the borrower has is that they may need HO6 insurance, if they don’t already have it. Makes total sense!


We will not be publishing our newsletter next week. Be safe and enjoy the Labor Day Weekend!

Erin and I want to sincerely thank you for your gracious support and entrusting us with your referrals.


The Meredith Mortgage Team, CMPS®

Certified mortgage planning specialist

“We Will Always Have Your Best  

  Interest In Mind”   

Erin & Kathleen

The Bay Area’s Premier

Mortgage Banker and Broker


(925)983-3048 office

(925)226-3215 efax

(925)918-0585 mobile



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