Replies to post #628922 on Fannie Mae-No Politics (FNMA)

[FFFacts]

That is what they are saying.

"Some have asserted that this price adjustment could impact borrowers by as much as $1,400—but this life of the loan estimate is a misrepresentation of how this cost would be applied. For an average refinanced mortgage, we estimate a reduction in savings of about $15 per month, meaning refinancing homeowners who were previously saving $133 on their monthly payments will now save $118 per month, on average.

For borrowers in this scenario, this estimate also assumes lenders pass on the entire fee. That is up to the lenders. If they do not, the $15-per-month figure would go down, potentially to zero."

There is something that you are not comprehending.

[imtheshadow]

yes, the one time .5% fee could be added to the financed amount like points ... so .5% x $300,000 refi = $1,500 fee financed at 3% over 30 years = $6.32 increase in the monthly payment, correct? ... if not, what am I missing? tia

[Louie_Louie]

If fee costs or point costs get bundled into a mortgage and not paid flat out, it's due to the stupidity of the borrower or mis-informing of the lender.

During 2008 people would do a type of cash out thing when refinancing where they would roll the loan for a new car purchase into their mortgage! They thought it a grand idea until someone pointed out to them you will be paying interest on that car loan for 30, 20, 15 or however many years.

The point being, you can't fix stupid. If people roll this point payment into their loan, in stead of paying it, after being explained to legitimately, then they deserve to pay. It's called learning a life lesson the hard way.