How can i save on my closing cost when i refinance? what does the Title company would discount on?and how much? i just bought the my house 6 month ago

Asked by Bobby, Falls Church, VA Mon Sep 5, 2011

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brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Mon Sep 5, 2011
BEST ANSWER
You should get a discount on the title insurance. It's about 40% off. Don't get the Eagle policy. Get the standard. In my opinion you don't need the extra coverage. Consult an attorney on that to be certain if unsure. Dp is right most of what is charged is unavoidable. There are some ways to lower the amount you borrow or bring to the table as a cost. Little long winded to get into here but feel free to email or call me and I will explain. My goal is to have you borrow as little as possible and I can show you a few tricks.
0 votes
AJ Heidmann, Agent, Arlington, VA
Fri Sep 9, 2011
Bobby,

You've received some good information below regarding using the title insurance & setttlement attorney, but not all of the fees are unavoidable as many have stated.

In Virginia you can refinance with the same company that holds CURRENTLY holds your mortgage and you are exempt from the recordation tax on deeds of trust, mortgages, and supplemental indenures as long as it was paid at the purchase. If you cash out, you will pay the tax on the amount above the original mortgage.

I highly recommend that you call the customer service number for your current lender and see reduced cost refi program as Don mentioned, I know they have one at Wells Fargo that holds my mortgage (but they dictate closing). If your loan has been sold since you took it out, do not use your original lender as the exemption will be disqualified, as is illustrated in a Tax Ruling that I have provided a link to below. The tax is collected at the local level, so you need to check with you muncipality to what is needed for you to get the exemption.

This has the possibility to save you many times what you could receive on re-issue rates or waived fees at the title company, so I would urge you to look into it.

Best of Luck!

AJ Heidmann
Cell 703-474-1260 ~ Office 703-717-6324 ~ Fax 703-839-8283
AJ@AJHeidmann.com
http://www.AJHeidmann.com
McEnearney Associates, Inc.
Licensed in Virginia

Below is the link to the Ruling of the Tax Commissioner
1 vote
Elliott R. O…, Agent, McLean, VA
Sun Oct 16, 2011
Bobby, what is your rate now? Depending on what rate you choose, your lender may be able to off-set the majority of your closing costs but you must be able to receive a net tangible benefit from refinancing. A streamline refinance is typically the best way to go but it depends on a few things.

I am a mortgage banker in Falls Church so if you would like to find out what your options are and receive some quotes, feel free to contact me at your convenience.

Elliott R. Oliva
Mortgage Banker NMLS #353884
Primary Residential Mortgage, Inc.
202.681.1636 direct
eoliva@primeres.com
0 votes
Lori Jeltema, Agent, Suffolk, VA
Fri Oct 14, 2011
If you bought your home with a VA loan six months ago, the rate may be more than a point higher than it is now and you can check into doing a streamline loan refinance with the lender who holds your loan. No appraisal, minimal costs. I have several clients who have done so and shaved a lot off their monthly payment.
0 votes
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Fri Sep 9, 2011
Bobby,

AJ gave you a valuable piece of information. It's worth a look. I usually recommend exploring a few options anyway so why not one where you already are. Pros and cons to both. Good luck and let us know if you have any other questions.
Thanks,
Brent

A moment
0 votes
AJ Heidmann, Agent, Arlington, VA
Fri Sep 9, 2011
One quick clarification... the amount exempt from the recordation tax is the amount currently owed on the mortgage, not the original amount of the mortgage.

Sorry for the incorrect info on the first answer,

AJ Heidmann
Cell 703-474-1260 ~ Office 703-717-6324 ~ Fax 703-839-8283
AJ@AJHeidmann.com
McEnearney Associates, Inc.
Licensed in Virginia
Web Reference:  http://www.ajheidmann.com
0 votes
Melissa Bark…, Agent, Washington, DC
Mon Sep 5, 2011
If you use the same settlement company, often they will charge you less. You should be able to save on the title insurance.

Good luck!
Web Reference:  http://www.wdcmetroagent.com
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Mon Sep 5, 2011
Why are you refinancing already? Make sure you understand the pros/cons and that you will actually accomplish your goal. It is a very rare circumstance where it makes sense to refi that soon after purchasing. To answer your question, check with the same lender (as in loan officer) that you used and the same closing company to see what they may be able to do for you - since they just made (presumably) a decent amount on one closing from you they may be willing to reduce fees to keep you as a loyal customer.
Web Reference:  http://www.vickychrisner.com
0 votes
Don Tepper, Agent, Burke, VA
Mon Sep 5, 2011
As Dp2 suggests, you may be able to reduce your costs on the title search.

And check with your lender. It may offer a reduced-cost refinance. Not because they're good guys, but because they'd be afraid you'd refinance with someone else. However, check the terms of the note to make sure that you can refinance (without penalty) so soon after buying.

Hope that helps.
0 votes
Dp2, , Virginia
Mon Sep 5, 2011
You might be able to save on the title search and policy, but that's about it. The rest of the fees are mandatory, and you can thank the government officials for that.
0 votes
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