(closing question) Re-issue credit?

[Alex]

Im in the middle of my first re-fi and was just told to fax over my settlement sheet from my original home loan closing for a re-issue credit. Has anyone had one of these before? Any idea how much they give you for a credit? Closing costs on a re-fi suck dong

[347Mike]

Not trying to be a smart ass but have you tried asking them? That would have been one of my first questions. lol

When you refinance what all does it entail? Is it closing costs, a percentage or what?

[SVT Lurch]

They're probably talking about the credit on the title policy. The state of Texas gives credit on title policies that are less than 7 years old starting at 40% for 2 years or newer and working down to I think 15% at year 7.

You have to understand a refinance is the same as a purchase to everyone involved, except you. The file still has to be orignated, processed, underwritten, appraised, sold, packaged, title search has to be done, etc. the work load is not any less simply because you already live in the house. It's still a brand new loan - you pay off the old one and get a new one.

Our fixed costs on a refinance are around $2,200 + title policy which is typically 1% of the loan amount unless you qualify for the above credit.

[347Mike]

They're probably talking about the credit on the title policy. The state of Texas gives credit on title policies that are less than 7 years old starting at 40% for 2 years or newer and working down to I think 15% at year 7.

You have to understand a refinance is the same as a purchase to everyone involved, except you. The file still has to be orignated, processed, underwritten, appraised, sold, packaged, title search has to be done, etc. the work load is not any less simply because you already live in the house. It's still a brand new loan - you pay off the old one and get a new one.

Our fixed costs on a refinance are around $2,200 + title policy which is typically 1% of the loan amount unless you qualify for the above credit.

That's not bad.

[Alex]

They're probably talking about the credit on the title policy. The state of Texas gives credit on title policies that are less than 7 years old starting at 40% for 2 years or newer and working down to I think 15% at year 7.

You have to understand a refinance is the same as a purchase to everyone involved, except you. The file still has to be orignated, processed, underwritten, appraised, sold, packaged, title search has to be done, etc. the work load is not any less simply because you already live in the house. It's still a brand new loan - you pay off the old one and get a new one.

Our fixed costs on a refinance are around $2,200 + title policy which is typically 1% of the loan amount unless you qualify for the above credit.

Yes, that is what im referring to- thanks.

but 40% of what for 2 years? (Fyi we have been here 3 years now)

Is it cash back or just as it says, a credit? (and if a credit, does it credit our closing costs or credit something else?)

[Alex]

Not trying to be a smart ass but have you tried asking them? That would have been one of my first questions. lol

When you refinance what all does it entail? Is it closing costs, a percentage or what?

yea, I tried asking, the person I was talking to was new and didnt know. (the assistant)

[SVT Lurch]

Yes, that is what im referring to- thanks.

but 40% of what for 2 years? (Fyi we have been here 3 years now)

Is it cash back or just as it says, a credit? (and if a credit, does it credit our closing costs or credit something else?)

40% of the cost of the title policy (which is usually around 1% of the loan amount. It's a credit on the settlement statement, but most just charge you the lower amount (If it should be $1,000 and you get the 40% discount they'll just charge $600, rather than $1,000 with a $400 discount). 2-3 years should be a 35% credit, 3-4 years should be 30%.