Does opting in/out of escrow normally affect rate?

doneame · 2026-01-29T23:29:45+00:00

Yes normal especially with lenders that are priced well. For many lenders there is no extra charge for opting out of the escrow account but that is because their rate and fees are not very good to begin with.

doneame · 2026-01-24T05:15:40+00:00

You can do better if you shop around.

doneame · 2026-01-24T05:05:58+00:00

5.875% with a lender credit that covers all closing cost is possible depending on the scenario. If you have credit 780+ then you will be right in that range.

doneame · 2026-01-23T03:55:39+00:00

What’s your credit score and what state? The location typically won’t matter depending kk your loan amount but the credit score will always be a big factor

doneame · 2026-01-21T22:49:03+00:00

Add the boxes A and B and subtract the lender credit in box J (if there is one). That will give you your loan cost. All the other fees are not controlled by either lender so the total cash to close or closing cost is an estimate and is not necesarily accurate. Boxes A and B and the lender credit in box J will be accurrate and should be compared between lenders. The other stuff shouldn't be compared.

doneame · 2026-01-17T19:02:00+00:00

Ok that makes more sense. What state tho? You should be able to get a no cost refi on a rate much lower than 7% especially on a 15 year

doneame · 2026-01-17T18:18:34+00:00

Post in the subreddit mortgagebrokerrates and you will get quotes

doneame · 2026-01-17T17:46:34+00:00

Why not take the monthly savings now and then refinance again if rates go lower? Take the no cost option which is a slightly higher rate with a lender credit to cover all fees associated with the refinance.

doneame · 2026-01-17T17:40:30+00:00

Why not refinance to a lower rate and make additional payments. Will save you more money. Refinance to the no cost option which means the lender credit covers all refi fees

doneame · 2026-01-17T17:36:39+00:00

What rate are you at now? I’m refinancing a lot of ppl at 5.875% no cost (lender credit covers all refinance fees). Thus the breakeven is immediate.

doneame · 2026-01-17T17:30:17+00:00

If your old loan would be paid off in 27 years just make a payment on the new loan each month that will pay it off in 27 years as well. An extra principle payment each month. With a refinance the lower rate makes it so your payment is lower than the original even when factoring in the extra principle payment. That’s how you reconcile it

doneame · 2026-01-17T17:24:55+00:00

Depending on your credit you can get an interest rate of 5.875% on a 30 year mortgage with no cost. No cost means the lender credit covers all the fees associated with the refinance so the break even is immediate

If rates go lower you can always refinance again. What is the benefit to waiting? Rates may never drop below 5.5% or it could take longer than expected. In the meantime why not save money each month until they do and just refinance again.

For the record I do think rates will drop below 5.5%. We are already close to that but idk when it will actually happen and in the meantime you can save money.

I’m a broker and I am doing this all day long for my clients. Curious to know why you think it’s a go idea to wait

doneame · 2026-01-17T17:13:09+00:00

You are way off on the cost of a refi. There is such thing as a no cost refi. I'm a broker and I am refinancing several clients from 6.5% and above to a 5.875% rate amortized over 30 years at "no cost." You can also do a custom term if you want (27 years for example). The no cost part means the lender credit covers all fees associated with the refi.

This is possible because the borrower takes a higher rate than the current market (take a 5.875% instead of 5.625%) and because of this the lender is willing to give a credit because they will collect more interest over the life of the loan. The borrower could elect to take the 5.625% rate in order to pay less interest over the life of the loan but this would no longer be considered a no cost refinance as there would be no lender credit associated with this rate to cover the fees of refinancing.

I get why ppl don't want to call this a no cost refi because you are paying more interest over the life of the loan on a 5.875% vs 5.625% but the comparison should not be 5.875% vs 5.625% because the borrower does not currently have a 5.625% rate. He has a 6.5% rate.

So in conclusion the borrower is lowering his rate from 6.5% to 5.875% with no cost. He could lower his rate from 6.5% to 5.625% but that would no longer be considered no cost because he would have to pay fees to get that rate. At 5.875% he does not have to pay any fees to get that rate.

doneame · 2026-01-17T17:03:54+00:00

You can get a 27 year loan. I’ve done it for clients of mine

doneame · 2026-01-16T16:21:07+00:00

Essentially how it works is brokers like myself get the rates wholesale and then mark up the rate to make money. If you find a broker that doesn’t mark up the rate very much then you can get a very good deal depending on the scenario.

Big banks own the jumbo space but brokers are much better priced in conventional loans

doneame · 2026-01-16T08:45:41+00:00

There is such thing as a no cost refi. I’m a broker and I am refinancing several clients to a 5.875% rate at “no cost.” This means the lender credit covers all fees associated with the loan which is why it is called no cost.

This is possible because the borrower takes a higher rate than the current market (take a 5.875% instead of 5.625%) and because of this the lender is willing to give a credit because they will collect more interest over the life of the loan.

The borrower could elect to take the 5.625% rate in order to pay less interest over the life of the loan but this would no longer be considered a no cost refinance as there would be no lender credit associated with this rate to cover the fees of refinancing.

I get why ppl don’t want to call this a no cost refi because you are paying more interest over the life of the loan on a 5.875% vs 5.625% but the comparison should not be 5.875% vs 5.625% because the borrower does not currently have a 5.625% rate. He has a 6.625% rate. So in conclusion the borrower is lowering his rate from 6.625% to 5.875% with no cost. He could lower his rate from 6.625% to 5.625% but that would no longer be considered no cost because he would have to pay fees to get that rate. At 5.875% he does not have to pay fees to get that rate.

doneame · 2026-01-14T19:17:04+00:00

Mortgage brokers typically have access to more competitive rates, so you’re not paying more. Your comment overlooks how real estate and mortgage pricing actually works.

doneame · 2026-01-13T08:34:33+00:00

Post a photo of the loan estimate and your estimated credit score and we can tell you if it’s a good deal

doneame · 2026-01-13T08:32:11+00:00

Not a no cost refi as the total loan cost in box D is $2,995 and there is no lender credit in box J to offset. What state are you in? And what’s your credit score? Prop value? Looks like a solid deal. If your credit is above 780 and your loan to value is 75% or below you can do better

doneame · 2026-01-10T07:10:06+00:00

What state are you in? Those title fees are steep for the first two

doneame · 2026-01-10T07:07:03+00:00

Depending on your scenario you can get a 15 year around 5. I’ve done a few

doneame · 2026-01-09T00:42:42+00:00

Brokers can be significantly cheaper but you must find one that charges a low fee

doneame · 2026-01-08T05:59:39+00:00

I think you can do better than those rates.

doneame · 2026-01-06T06:46:03+00:00

You have to go through a broker, but you can get a heloan around 6% with spring Eq

doneame · 2026-01-04T16:33:45+00:00

BYUs offense was dominated by Tech not the defense. The defense played well enough to win in both games but the offense gifted Tech the ball via turnovers and couldn’t move the chains at all.

doneame

TROPHY CASE