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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Do you have to pay a state stamp tax if you are refinancing with the same mortgage company? I just got my GFE in the mail and it is almost double what the loan officer told me in part due to the state tax of $3,211 they are hitting me with.
I was told my closing costs would be about $5k. I got a quote for $9700. Is any of this negotiable. I feel like this is alot. I am refinancing with Bank of America who holds my mortgage now (used to be Countrywide).
Message edited 5/26/2009 7:37:38 PM.
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Posted 5/26/09 7:14 PM  |
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thiadora
Happy Little Girl
Member since 5/05 3830 total posts
Name:
Thia (Cynthia)
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Re: Stamp tax in refi???
If you're paying off your existing mortgage and taking out a new loan, you have to pay tax on the total amount.
If you are consolidating, you only have to pay tax on the new money.
HTH
ETA- It makes no difference whether you're refi'ing with the same lender or a different one. Same rules apply across the boards.
Message edited 5/26/2009 7:21:30 PM.
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| Posted 5/26/09 7:17 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Posted by thiadora
ETA- It makes no difference whether you're refi'ing with the same lender or a different one. Same rules apply across the boards.
thats not necessarily true. We're refi-ing with the same bank and we do NOT have to pay tax on the loan as they can show the origination. If we were taking cash out and/or increasing the amount, we would have to pay tax on the difference.
Thats the perk of staying with your current lender.
eta: I believe these rules vary by state.
Message edited 5/26/2009 10:20:01 PM.
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| Posted 5/26/09 8:23 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Posted by -Lisa-
Posted by thiadora
If you're paying off your existing mortgage and taking out a new loan, you have to pay tax on the total amount.
If you are consolidating, you only have to pay tax on the new money.
HTH
ETA- It makes no difference whether you're refi'ing with the same lender or a different one. Same rules apply across the boards.
thats not necessarily true. We're refi-ing with the same bank and we do NOT have to pay tax on the loan as they can show the origination. If we were taking cash out and/or increasing the amount, we would have to pay tax on the difference.
Thats the perk of staying with your current lender.
eta: I believe these rules vary by state.
What state do you live in?
That is what I thought the case was.
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| Posted 5/26/09 8:33 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Posted by jellybean1420
If you're paying off your existing mortgage and taking out a new loan, you have to
What state do you live in?
That is what I thought the case was.
I'm in NY. Thats how it was explained to me by our lender (IndyMac), and is reflected as such on our GFE.
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| Posted 5/26/09 8:49 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Posted by -Lisa-
Posted by jellybean1420
If you're paying off your existing mortgage and taking out a new loan, you have to
What state do you live in?
That is what I thought the case was.
I'm in NY. Thats how it was explained to me by our lender (IndyMac), and is reflected as such on our GFE.
I'm in NY as well. So odd. I am going to have to ask my LO.
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| Posted 5/26/09 8:50 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
these may help:
http://realestateqa.blogs.nytimes.com/2009/01/14/does-a-mortgage-tax-apply-in-a-refinancing/
Borrowers who refinance can sometimes avoid the tax if the lender agrees to treat the new loan as essentially an extension of the old one.
http://www.nytimes.com/2009/05/03/realestate/03mort.html
Message edited 5/26/2009 10:25:53 PM.
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| Posted 5/26/09 10:20 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
If you are modifying your loan or consolidating your loan (this would be if you are taking any equity out) then you would not have to pay the mortgage tax on the modification and only pay mortgage tax on the "new" money that you are taking out but should be minimal.
As a previous poster said just because you are using the same bank does not mean you will not have to pay the tax, it depends how they are setting up the loan. You want them to set it up as a modification or a consolidation not a new loan. Definitely talk to you LO.
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| Posted 5/27/09 12:22 AM |
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thiadora
Happy Little Girl
Member since 5/05 3830 total posts
Name:
Thia (Cynthia)
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Re: Edited: How much were your closing costs on a re-fi? MY GFE is almost double what I was originally quoted.
Posted by -Lisa-
Posted by thiadora
ETA- It makes no difference whether you're refi'ing with the same lender or a different one. Same rules apply across the boards.
thats not necessarily true. We're refi-ing with the same bank and we do NOT have to pay tax on the loan as they can show the origination. If we were taking cash out and/or increasing the amount, we would have to pay tax on the difference.
Thats the perk of staying with your current lender.
eta: I believe these rules vary by state.
If no new money is taken out, then yes, no tax is due. From what the OP was saying, it sounds like she is taking out new money and consolidating which is why I answered the way that I did. When I was referring to the "same rules" I was talking about when the loan amount is increased (and the portion of my response that was not quoted). But tax is always due on any new money (and of course, on a new mortgage). If someone is given a new mortgage or additional money, the counties WILL NOT record a mortgage without either a check for the tax or proof that the tax was paid.
If tax is not due or you're paying less tax than the face value (on say a consolidation), then a 255 Affidavit must accompany the document (which basically explains the legal reasons way tax will not be paid.) This affidavit generally accompanies a modification agreement, cema or assignment of leases and rents- for example.
I work for a title company and we generally use different lingo than the mtge companies. To me a refi is a cema or new mortgage paying off an existing one. Modification are also rarely insured by title companies since the bank is already covered by the existing policy so they're not something that I really deal with in my work life.
If you're modifying then the lender's atty will prepare a 255 affidavit to accompany the Modification Agmt and that is why you will not be paying tax.
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| Posted 5/27/09 9:18 PM |
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