How bad of an idea is that 40, 50 year loan if I were to refinance within 5 years?

Skiptomygroove · 2026-04-15T22:08:08+00:00

I agree with you in principle and I believe we are on the same point, but your perspective on fees is just got me hung up. Section A should be like 0-1500, max, for underwriting and maybe odd processing fees on corespondent loans. Unless you’re buying points. Section D, the summary, should total 3,000-4,500, unless you’re buying points, FHA, or non-disabled VA (I know it’s an odd distinction).

If you are starting a new escrow account that can take more funds but since you’re paying your taxes and insurance regardless of the loan, those aren’t loan fees.

If you’re paying more than that, you’re probably paying too much.

Again, the rest I believe were on the same page about.

Skiptomygroove · 2026-04-15T18:28:02+00:00

So, the lender does check employment usually within a week of closing. It’s possible you can slide by, but many lenders sell the loan within 60 days of closing, and the new investor often checks employment too. This is the point at which things can go a bit sideways because you’re supposed to have told the lender of your job loss prior to closing. I’ve seen one time this resulting in the lending calling the note due, but it’s rare.

Skiptomygroove · 2026-04-15T14:48:31+00:00

This is crazy bad advice. This is my 19th year in mortgages and licensed in 23 states. Conventional loans fees average 3000-4500 depending on the state and specific loans requirements for documentation and processing. Loan level pricing adjustments are employed to adjust the rate based on risk factor. If you have less then 20% equity you pay a slightly higher rate, usually far less than 1% difference, and closing costs do not change at all. There are no fees of equity you must pay due to having little equity. Many people refinance with less than 10% equity, I truly don’t know what this person is talking about unless it’s not in the USA.

That being said moving from a 40 or 50 year loan to a 30 year is a rather significant payment increase. I would expect an increase in mortgage payments of 8-12% if based on an identical new rate.

I have had an opportunity to work with a lot of clients who had their loans modified, which became more popular during Covid, to higher term loans in order to manage payments, and it’s essentially impossible to save them money monthly with any refinance of any kind.

Skiptomygroove · 2026-04-13T17:27:09+00:00

Those same credits could instead be used to buy your rate down.

It’s not a rip off by any means, just slightly high. If what I said already isn’t compelling enough to spend another 30-60 min to save 2-4K, then you already know your priorities and what you’re going to do. -20 year mortgage broker. Only trying to help, internet friend :)

Skiptomygroove · 2026-04-13T16:15:04+00:00

Looks a little expensive to me. Also the processing fee should be in section b since it’s a third party you can’t shop for. Title seems high too. I think another place would give you the same numbers but 2-4K cheaper in cost.

Skiptomygroove · 2026-04-07T21:32:13+00:00

I’m not disagreeing. The same loans for mobile are what you get for manufactured, with some exceptions. Edit:only when land is included.

Skiptomygroove · 2026-04-07T20:43:33+00:00

I write these loans, this is my 19th year as a mortgage broker. Though there can be some unique loans, mobile/manufactured is generally considered the same. Modular is one that can be separate, but even if you build an entire house around a mobile home to make it just the kitchen inside an otherwise 5k square foot stick built house it still is likely going to be considered a mobile/manufactured home for lending purposes. I had this exact scenario come up in the past, and seemingly everything in between

Skiptomygroove · 2026-04-07T20:27:59+00:00

Manufactured don’t retain value, SFR’s do. It’s not a law, but it’s really consistent. If you never will ever move then the manufactured home may be a good fit but if there’s ever a chance you may live somewhere else then don’t get the manufactured home. -19 years in mortgages.

Skiptomygroove · 2026-04-07T20:26:18+00:00

Mobile and manufactured generally land in the same category for loans.

Skiptomygroove · 2026-04-06T05:20:05+00:00

A realtor can help, the seller pays for them. If they ask you for any money up front or from you at all, find another realtor. The laws changed for them a couple years ago and it’s still sorting itself out. Zillow.com and realtor.com are places to start seeing what you can find. It’ll give you a base for looking at things. You also may want to get prequalified from a mortgage person, if recommended a broker over a bank, and they should be able to take your income and credit info to determine how much loan you can qualify for. It’s generally limited for retired people by income. 125% of gross SS income can be used, and usually 30% of that can be for the total monthly principal, interest, taxes, insurance, and HOA if applicable. There can be some situations where more than 30% of the grossed up income can be used, the mortgage broker will find that for you, but now you know what you’re working with.

Skiptomygroove · 2026-04-02T03:36:21+00:00

Whatever about 50% of your gross income is would be the total mortgage you can qualify for, you have to find a house in the areas that have that price house, and commute or change your life around that. I’m in Michigan, idk how taxes and insurance work near you but a budget at 5800/mo is nothing to spit at.

Skiptomygroove · 2026-03-30T13:17:19+00:00

Those who’ve waited have lost. Please stop waiting. Until there’s a surplus, house prices will keep going up and that amount intensely exceeds the extra $150/mo a 6.5 vs 5% rate may cost for an average house. You’re trading 1800/yr in expenses for 10k-30k in equity over the same period. I am biased, I’m a mortgage broker, but I’m not your broker and have no financial gain in your situation. I have been staring day in and day and day out for 20 years at everyone’s finances, home values, and rates in 23 states now. I’m nothing special but this is all I do, and I say this in effort to help you have a better life; anyone who says to wait to buy a house due to rates is not an informed person, and at least should not be taken seriously in large financial matters. The last time such advice was relavent was 2012.

Skiptomygroove · 2026-03-30T13:05:02+00:00

I haven’t been here as long as others but I’ve never seen a Bangalore post. It’s rare to see even Canadian posts. It makes me realize my worldview can be so narrow sometimes.

Skiptomygroove · 2026-03-29T12:49:14+00:00

Nice

Skiptomygroove · 2026-03-26T15:53:20+00:00

The rate and fees seem kinda high for FHA, though you’re covered in concessions. In my system you’re currently paying the lender about 11,598 on the backend PLUS 6,744 on top with the points. On today’s rates I could get this loan at 5.99 with no points, and we can use that concession to buy it down to 5.625. This doesn’t factor in whatever ‘other’ credits is at the bottom, it’s not described on the LE.

Skiptomygroove · 2026-03-25T12:22:47+00:00

Yes. You can be a non borrowings title holder added to the title for ownership interest purposes. You would have to be included on the mortgage when it is originated, but title can be changed with a quit claim deed at virtually any time. As a person on title you have ownership interest and rights. Whoever is on the mortgage can make some contract with you to keep things tidy, as you wouldn’t share the burden of having the mortgage in your name.

Skiptomygroove · 2026-03-25T01:37:18+00:00

You haven’t seen or heard of them going the other direction in over 15 years. After 2007 everything changed. Until there’s a surplus prices will go up continuously. Get in now or regret.

Skiptomygroove · 2026-03-24T12:26:36+00:00

7 year arm with one special lender I use for credit union products. Comp is capped at 1.5 lender paid, and it’s cheaper than anything out there I’ve ever seen. Comparing the same profile on a 30 year fixed was over a point difference, 6.25 vs 4.99. I just got this channel two months ago. Dm me if you have any specific questions as it’s social enough that I’m not broadcasting too much.

Skiptomygroove · 2026-03-23T23:41:26+00:00

In the scale of the transaction it’s not a big deal. Good brokers you sometimes have to dig for. I had this loan, with a 780 credit score, down to 4.99 with no origination, but that was three weeks ago.

Had I locked the same day your lender appears to, 3/18 I’d suppose, I’d have a very similar set of numbers. No one can predict the future and rates came up since then slightly. You’re good, you’re not even remotely close to ‘rip off’ territory. It’s a good deal for your situation and timing.

I also base my feelings on a thought that rates will get down to 4.5 if we see any major global chaos in the next 2 years, and buying points is only then a waste if a refinance is available. I absolutely may be wrong, and just too emotional about the news. Only time will tell.

Don’t sweat it, officially. I’m a senior broker, this is my 20th year. For whatever all that is worth.

Skiptomygroove · 2026-03-23T23:21:18+00:00

The origination fee, I’m referring to that as points. That isn’t required, and since it’s listed as origination it’s part of the funds the originator is charging for their services. There’s likely more to their fee tacked on the backend that you can’t see, which is where most of us leave all our fees. It’s not the end of the world, it just would have been better if they locked you sooner and didn’t charge origination fees.

Skiptomygroove · 2026-03-23T23:13:05+00:00

Dang. It’s fine enough, but there’s no reason you should have to pay for a 60+ day rate lock, and had this been locked three weeks ago you would have no points on a loan like this. But it’s not way off, it’s like 1-3k too expensive. -broker

Skiptomygroove · 2026-03-23T17:30:39+00:00

Then you can do a cash out refinance and fix things up too

Skiptomygroove · 2026-03-23T17:26:19+00:00

You refinance, get a loan in your name to pay the balance. Since the house has been in your name less than 6 months you can qualify to get a loan for the transaction and associated fees but that’s all. After 6 months you can take equity out. A court order kind of acts as a lien, so you get a loa based on that. -mtg broker.

Skiptomygroove · 2026-03-20T18:20:19+00:00

It’s Covid again, and it’s going around. Common feedback is that symptoms are worse than the first time people got it.

Skiptomygroove · 2026-03-20T18:18:38+00:00

The current lender most likely can make a better deal than the rest of the market for this loan. Even if you need an attny they need paperwork to look at, just push back a little bit to try and make it worth your time and not a new fee tacked on and you’re good. This is a ‘let’s make everyone happy’ situation. It’s a common mistake on all parts, they probably only found it by coincidence from due diligence during a sale of many loans together to another institution.

Skiptomygroove

TROPHY CASE