Refinancing a Tiny Mortgage?

One thing a lot of people forget or do not realize in the first place is that many of these "closing costs" are negotiable even in the best of times. You don't have to wait for a financial meltdown to negotiate closing costs with a lender. I hope people remember the readiness of the banks to absorb some of these costs in the future when things get better. It is all a matter of what the banks are willing to do in order to get your business, especially if they believe you are going to be a good risk and a source of future profit for them.

Reply to
Don
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The bank absorbs nothing. If you don't pay it up front you pay it in your mortgage. Thumper

Reply to
Thumper

I would revise that statement to say: "The bank absorbs nothing it doesn't have to." The bottom line is they want to make as much money as possible, and if they believe they will have to pay a lawyer's fee or an appraisal fee, or whatever, in order to "make the sale," so to speak, they will do it. But you are right, they will try to sneak as much as possible that is favorable to them into the mortgage terms. Be especially watchful about prepayment penalties.

Reply to
Don

How about "the closing costs are invisibly reflected in the rate charged"? I don't know what point you're trying to make. It's a fact that there are mortgages now advertised with no point/no closing. I pointed out up front to read fine print to be aware or early payoff penalty (for a time, I had one that had a $500 fee if paid in full in less than 2 years. That was a 20 yr term refinanced after about 3 years to a 15.) The question was about whether it pays to refinance a small mortgage. Then it turned into a tangent about how banks are making money on these. I don't care. I suppose when you offer sub .1% return on savings, the interest you charge on lending goes to profits pretty quickly.

Reply to
JoeTaxpayer

Not to mention that banks don't really lend you their money, They create debt out of whole cloth due to our fractional monitory system. What money they do have to borrow themselves is at virtually 0% as well. Thumper

Reply to
Thumper

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