Refinancing my house and something seems fishy, but I don't know enough about the math behind these things to say for sure. I'll try and condense the story as much as possible.
Initial value was estimated at $135,000. Loan was $100,000 to stay just under 75% LTV. There was like 1.5 points, in that range anyway, to get a 4.99% rate. That rate was locked in 30ish days ago. Headed to closing now, but still not getting a straight answer about the points.
Based on the $100k loan vs $135k value the points were going to cost $1061. Then the appraisal comes back at $145k. So I upped the loan to $108k, almost exactly the same LTV, still slightly under 75%. And the points went up to $1645. I questioned this, an 8% increase in loan amount results in a 58% increase in points cost? I was assured that nothing about the loan had changed, no added fees, no rate increase, nothing. So I asked why the points went up so much and at first the agent was kinda on my side. Then a few days later I get a boilerplate text from her saying, "my manager confirmed the points are correct. Our pricing is so uniqe to each borrower that the change in loan amount did affect the points cost on your loan." I pointed out that this didn't make sense, something had to have changed in the math behind it for that to happen. I was basically told at that point take it or leave it.
Then when looking over the initial disclosures on their website I see on the main page that my loan amount shows $108k, but the property value still says $135k. I mention this and asked if this could possibly be why the points jumped up, since based on those numbers the LTV would have increased. I was given a very short "the points are correct" answer. Not what I asked, and obviously this line of questioning is being met with a stone wall now.
So, does this sound at all normal? Or am I right that something major changed at least in terms of how the points are calculated? Honestly given the way they've handled this if interest rates were still the same as when I started the process I'd probably just walk away and shop around, but I think they know if I do that I'll be more in the 5.5% range and up. So basically I have to eat that extra $500 to get the loan. I don't care for their refusal to show the math behind what's going on, and the attitude of "screw you, take it or leave it". But I'm thinking that rates are only going to continue to go up for the foreseeable future, so yeah, may not have a choice.
Initial value was estimated at $135,000. Loan was $100,000 to stay just under 75% LTV. There was like 1.5 points, in that range anyway, to get a 4.99% rate. That rate was locked in 30ish days ago. Headed to closing now, but still not getting a straight answer about the points.
Based on the $100k loan vs $135k value the points were going to cost $1061. Then the appraisal comes back at $145k. So I upped the loan to $108k, almost exactly the same LTV, still slightly under 75%. And the points went up to $1645. I questioned this, an 8% increase in loan amount results in a 58% increase in points cost? I was assured that nothing about the loan had changed, no added fees, no rate increase, nothing. So I asked why the points went up so much and at first the agent was kinda on my side. Then a few days later I get a boilerplate text from her saying, "my manager confirmed the points are correct. Our pricing is so uniqe to each borrower that the change in loan amount did affect the points cost on your loan." I pointed out that this didn't make sense, something had to have changed in the math behind it for that to happen. I was basically told at that point take it or leave it.
Then when looking over the initial disclosures on their website I see on the main page that my loan amount shows $108k, but the property value still says $135k. I mention this and asked if this could possibly be why the points jumped up, since based on those numbers the LTV would have increased. I was given a very short "the points are correct" answer. Not what I asked, and obviously this line of questioning is being met with a stone wall now.
So, does this sound at all normal? Or am I right that something major changed at least in terms of how the points are calculated? Honestly given the way they've handled this if interest rates were still the same as when I started the process I'd probably just walk away and shop around, but I think they know if I do that I'll be more in the 5.5% range and up. So basically I have to eat that extra $500 to get the loan. I don't care for their refusal to show the math behind what's going on, and the attitude of "screw you, take it or leave it". But I'm thinking that rates are only going to continue to go up for the foreseeable future, so yeah, may not have a choice.