Our company is in the act of performing a refinance. Nevertheless, we simply took out the mortgage that is original recently. The new loan is 3/8 of a point a lot better than the initial loan and now we are likely to conserve a lot of cash in interest re payments.
We learned recently that this is certainly planning to price the originator for the loan that is first a bit of cash. I’m bad if I pay off the balance of the first mortgage loan early; no one mentioned this during the process about it, but also, I didn’t know at the time I started the refinance that there was a penalty for the originator.
Is there etiquette around the way I should manage this? Can a person with familiarity with the mortgage origination industry explain how much cash there clearly was become gained or lost in a refinance that is early? The very first originator described the loss as “huge” but I don’t understand if they’re exaggerating or what that could entail.
Responses
I’ve buddy that is home financing broker. In the ongoing business he works for, if a person of their loans is paid down within half a year of origination, he loses their commission.Continue Reading