Conference 7.286::dcu

I applied for refinancing in late January this year.  Paperwork was about the
same as the bank paperwork from the last mortgage we had.  About 5 weeks from
start to closing.

I just applied for re-financing.  Got a 15-year 7.5% at 1/4 pt. locked in.
Just waiting now for the appraisal etc.  Will respond when we go to closing.

From the investigations I did the DCU's rates were competitive and the costs
were a little lower than most others.

Jilly

Does anyone have any idea who the main byers of DCU Mortgages are.

There are a couple that I'd like to stay far, far away from and wonder
if it a concern.

Also, the 7.5% at 1/4 point, was there an extra point added to lock it in ?

Bill

>    The point that is paid to lock in a rate is usually deducted from the
>    total of points required for the loan.

This is correct plus it is non-refundable if I don't get the loan, along with 
the application fee.

Jilly

    
>This is correct plus it is non-refundable if I don't get the loan, along with 
>the application fee.
    
    Are you sure the points are non-refundable?  Sounds like a lot of money
    to potentially lose.
    

The "lockin" point (or sometimes half point) is in my experience refunded
if they deny the loan, but not if they grant the loan and it isn't taken.
I believe, though, that it is refunded if you turn down the loan during
the three day recision period, but I guess not many people know about that.

	Larry

I thought that it was non-refundable but have not really checked.  In
my case it isn't really that much (less than twice the application fee).  If
I get a chance tomorrow I will check whether it is refundable.

I have just verified that the point to lock in the rate is non-refundable.

    Thanks to these replies, I proceeded with application. I learned today
    that the 1 point is required at lock-in time and is not refundable.
    That means if you apply on Monday and are tentatively approved, then lock in
    your rate with a point on Thursday, that point is spent. You lose the
    point even if you don't get final approval for the loan.
    
    The alternative is to not lock in until you're definitely approved.
    Then you don't have to worry about losing the point.
    
    The rate can change in the meantime, so you can weigh the security of a
    guaranteed rate to that of a guaranteed loan.
    
    dh
    

  Somehow I think that a point to lock in is a ripoff...  Most of the rates
are quoted as 30 day or 60 day closing.  Paying a point just to guarantee a
rate right now is a real ripoff when obviously the rates are falling not
going up.  It's just hard now to figure out when the bottom will occur and
get it done before that happens.  My current re-finance they do not require
this extra money to lock AND he said that if the rates got lower before I
close I could get that.

    Paying a point up front to lock in the current interest rate is a
    perfectly reasonable thing to do when rates are at/near the bottom or
    are heading upward.  The time between application and loan commitment
    is sometimes longer than one expects (especially when an appraisal is
    needed or if the lender is being "picky" about credit references and
    such); without a lock-in, the actual rate will be specified in the
    commitment letter (or even deferred to the closing date).
    
    The nice thing is that you're really only paying the (lost) INTEREST on
    the point in order to lock in the mortgage interest rate.  It's applied
    at closing as a pre-payment on your closing costs.  That was one of the
    few PLEASANT surprises I've had in the course of five mortgage loans in
    18 years (1 assumption, 2 new mortgages, 2 refinances).
    
    If you expect interest rates to continue dropping (they're back to 1973
    levels now -- how much farther might they go?), then don't bother with
    a lock-in.
    
    It all reminds me of "Let's Make a Deal".  Do you want to keep what you
    have (by locking it in) or "take the curtain"?

    Does anyone know what credit reporting service DCU uses for its
    mortgage loans?
    
    

    When I applied for refinancing, they used two credit reporting
    agencies that I was aware of, TRW and CBI/Equifax.
    

    Since I started this note, I'd better finish it. I applied for a loan
    in August and was finally approved in March. In sum, it took a long
    time but DCU was helpful and the rate was good. I'd do it again but
    push more on speed. (I didn't push here because rates kept coming
    down.)

re: .16

If you can answer without revealing too much personal information, what was so
unusual about your situation that required a 7-month loan approval process?

Bob

    
    also, what rate did you get?
    
    Simon

    Re: Last two: sorry, I wrote that note and didn'topen this notefile
    again. Nothing was unusual, except my wife quit her job, had a baby,
    and got a new job last year. Then the house had to be re-appraised
    after three months passed from first appraisal. Then the guy who was
    handling the application for DCU left the company. He was nice, but
    slow and could never explain why itwas taking so long. The rate was
    7.75 /30 years/one-half point.