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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Is Chase screwing us???? Update 9/23 at bottom of post...
Sent in the application for refi for our home. Hand in the application and we get into talking about Homeowners insurance and how we currently pay out of pocket...blah...blah...blah...
then the loan officer tells us that this changes things...blah...blah...blah...
mainly, we either have to roll our home owners insurance into our refi and then pay an additional year of HOI in escrow (extra $1300) to pay the day of closing...
or pay a "fee" of $1369 as part of closing for not including this fee in our monthly payment. He claimed it was for liabiliyt purposes due to the housing market fiasco.
So basically we have to pay and extra $1300 either way, to refinance on something we already are paying out of pocket for that is separte from our loan???
My husband is livid and wants to kill chase....
please help...
Update 9/20: I think we are totally getting screwed. They are allowing us to not escrow our Home Owners insurance... but are increasing our interest rate!!!!!!! ***!!!!
Message edited 9/23/2010 11:01:54 AM.
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Posted 9/17/10 3:13 PM  |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Is Chase screwing us???? Please help!!!!
I think you will get the extra 1300 back when you sell the house though because they are just escrowing the money
if you don't escrow it they are charging you a fee and you probably won't get that back
so I would just let them take it out and escrow the $ so you don't lose the $
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| Posted 9/17/10 3:19 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!
Posted by HeatherRose
I think you will get the extra 1300 back when you sell the house though because they are just escrowing the money
if you don't escrow it they are charging you a fee and you probably won't get that back
so I would just let them take it out and escrow the $ so you don't lose the $
but we currently have our mortgage with them and we have been doing it this way for 3 years already....now they want to hold money in escrow...for something that we have already been doing?
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| Posted 9/17/10 3:20 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Is Chase screwing us???? Please help!!!!
They are not screwing you but I agree with the previous poster. It is better to pay the 1 month up front then to pay the fee. Then you will make 1 payment and not have to worry about anything.
The banks are doing things very differently then they did 3 years ago.
On condos they are making purchasers escrow their contents insurance policies--something that isn't even required to have. The banks are crazy--see if they will waive the fee since you have the relationship with them. If not then I would do the escrow because the rates are great compared to what they were 3 yrs ago
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| Posted 9/17/10 4:34 PM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: Is Chase screwing us???? Please help!!!!
The upfront "fee" is just pre-paying a full year of insurance up front and they are collecting the monthly escrow to have the funds on hand to pay the insurance next year.
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| Posted 9/17/10 5:40 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
bump
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| Posted 9/20/10 2:08 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by MrsFlatbread
Posted by HeatherRose
I think you will get the extra 1300 back when you sell the house though because they are just escrowing the money
if you don't escrow it they are charging you a fee and you probably won't get that back
so I would just let them take it out and escrow the $ so you don't lose the $
but we currently have our mortgage with them and we have been doing it this way for 3 years already....now they want to hold money in escrow...for something that we have already been doing?
they probably weren't escrowing the $ for the insurance before, but since you are changing the mortgage, the new rules apply
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| Posted 9/20/10 2:51 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
I wouldn't say you're getting screwed.
We had the same issue when we refi-ed last year (not with Chase). It would have cost us more not to do the escrow so we did it.
But we were told we could request to remove the escrow after the loan closes. I just havent bothered to try to yet.
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| Posted 9/20/10 3:57 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by -Lisa-
I wouldn't say you're getting screwed.
We had the same issue when we refi-ed last year (not with Chase). It would have cost us more not to do the escrow so we did it.
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yeah, but they said we could do it...only if they increase our interest rate??? It sounds like I am getting totally screwed!!!
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| Posted 9/20/10 4:01 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Its a commonly accepted practice that the banks will give a better deal if you escrow. They want your money in escrow and it will cost you more one way or another not to do that -whether its by adding a fee or raising interest rates.
Those are their terms - that doesn't mean you're getting screwed. You just don't like the terms.
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| Posted 9/20/10 4:05 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by -Lisa-
Its a commonly accepted practice that the banks will give a better deal if you escrow. They want your money in escrow and it will cost you more one way or another not to do that -whether its by adding a fee or raising interest rates.
Those are their terms - that doesn't mean you're getting screwed. You just don't like the terms.
Understood...but their rates were muuuccchh higher than other banks and since our current mortgage was already with them, we thought that they would try to at least not make it difficult to want to stay with them. I will be looking elsewhere for a better rate for sure now.
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| Posted 9/20/10 4:07 PM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Ugh that does not sound good. I think it is time you look elsewhere. Let me know if you want the name of the mortgage guy we just used. We were very happy with the refinance process.
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| Posted 9/20/10 7:20 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
We refinanced with BOA and I actually took my homeowners out of escrow with them. They did want the next school taxes due paid at the time of closing.
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| Posted 9/21/10 1:00 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by jellybean1420
We refinanced with BOA and I actually took my homeowners out of escrow with them. They did want the next school taxes due paid at the time of closing.
I work at BOA and we do not charge a fee to not escrow. It doesn't matter either way. We do require that any taxes due in the 60 after the closing be paid at the time of closing.
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| Posted 9/21/10 9:01 AM |
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sleepie76
enjoying every minute
Member since 12/07 3881 total posts
Name:
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Look elsewhere!
You can get a better rate.
Chase did not offer much incentive to stay, I was surprised.
The better rate will save you more than staying with them.
Have Chase assign the loan, they did this for me. Costs you $1100 but saves you from paying the mortgage tax, thing you avoid by staying with them.
I was better off paying the $1100 and getting the better rate at a different bank. It saved me more per month!
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| Posted 9/21/10 10:25 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by sleepie76
Have Chase assign the loan, they did this for me. Costs you $1100 but saves you from paying the mortgage tax, thing you avoid by staying with them.
what does this mean?
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| Posted 9/21/10 11:14 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by MrsFlatbread
Posted by sleepie76
Have Chase assign the loan, they did this for me. Costs you $1100 but saves you from paying the mortgage tax, thing you avoid by staying with them.
what does this mean?
If you refi with the same company, you can avoid paying mortgage tax on the loan (which is added to your closing costs). Thats the main advantage of staying with your current lender.
If your current lender is willing to re-assign the loan to a new bank, you can also avoid the mortgage tax (since its not considered a "new" loan).
Some lenders will do it, others wont. Apparently Chase will for a fee ($1100 for the previous poster)
So when you're shopping around for a better rate/deal you should take into consideration the tax consequences and/or additional fee involved.
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| Posted 9/21/10 12:22 PM |
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sleepie76
enjoying every minute
Member since 12/07 3881 total posts
Name:
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
Posted by -Lisa-
Posted by MrsFlatbread
Posted by sleepie76
Have Chase assign the loan, they did this for me. Costs you $1100 but saves you from paying the mortgage tax, thing you avoid by staying with them.
what does this mean?
If you refi with the same company, you can avoid paying mortgage tax on the loan (which is added to your closing costs). Thats the main advantage of staying with your current lender.
If your current lender is willing to re-assign the loan to a new bank, you can also avoid the mortgage tax (since its not considered a "new" loan).
Some lenders will do it, others wont. Apparently Chase will for a fee ($1100 for the previous poster)
So when you're shopping around for a better rate/deal you should take into consideration the tax consequences and/or additional fee involved.
what she said 
basically, the biggest expense of Refi is the mortgage tax. You have to pay tax on the amount of the mortgage.
If you stay with the same bank you dont have to. If they reassign, you skip the mortgage tax.
You definately want to re-assign the loan. Saves you THOUSANDS.
My mortgage broker was great & explained the whole re-assign process. IF you want his # let me know.
Or if you have any other questions FM me. I started this refinance process dumb & now I understand it LOL
Good Luck!
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| Posted 9/23/10 10:47 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Is Chase screwing us???? Please help!!!!Update 9/20...
They were screwing us. After I threatened to remove our mortgage from Chase...he suddenly would allow us to do anything that I want. Tough! We are going with our credit union at a much lower rate!!!
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| Posted 9/23/10 11:00 AM |
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sunnyflies
LIF Adult
Member since 9/09 1757 total posts
Name:
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Re: Is Chase screwing us???? Update 9/23 at bottom of post...
I always thought using mortgage brokers was more expensive than going to a bank because they take commissions. Did you get a better rate using one?
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| Posted 9/23/10 11:43 AM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: Is Chase screwing us???? Update 9/23 at bottom of post...
Posted by MrsFlatbread
They were screwing us. After I threatened to remove our mortgage from Chase...he suddenly would allow us to do anything that I want. Tough! We are going with our credit union at a much lower rate!!!
good for u!!!! our bank wanted us to escrow tax at closing. we were persistant and they agree to let us pay on our own they want everyone to escrow SIX months of property tax, I would rather keep my money in my bank account
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| Posted 9/23/10 2:53 PM |
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