Conference 7.286::dcu

    $750 is high?  I'm pretty sure we paid $1000 to our bank's lawyer when
    we closed 1� years ago.  Our bank had a list of lawyers they used, but
    the particular lawyer we got was picked by them (BTW, all the lawyers
    they used charged about the same).

$750 is about par. Unless the deal is fairly complex (many condo
deals are) one doesn't really need another lawyer.

-- Ron

    Why are you using DCU? In my experience, they have NEVER been even
    close to the best deal available. I have bought homes 3 times in the
    last eight years, twice in MA and most recently in CO. I checked DCU
    each time and found that their interest rates, points and other closing
    costs were always higher than I could get elsewhere. They are also
    totally inflexible. It is like they are doing you a big favor to make
    a profit off you.
    
    I have also always (well, twice) found home equity credit lines
    available through S&Ls for no more than a $150 application fee,
    while DCU puts you through the wringer all over again (even if they
    already hold your mortgage!!!!).
    
    Do yourself a favor. Take your business elsewhere.
    

    Well, I just finished shopping for an equity credit line and DCU
    turned out to be the best deal I could find. I couldn't believe
    it, but it's true. Cost me $175.00 for a 30,000 line 'o credit.
    And I didn't even have my 1st mortgage with them.
    
    This probably only happened to me because of -.1. But, credit where
    credit is due. Sometimes they come out on top.
    

    doesn't usually happen that way.  They delay and delay and delay and 
    after 14 weeks it goes through.  Then because it took so long they
    aren't obligated to give you the promised rate.  Instead charge you 
    1 1/2% higher, but by then you're $400 poorer and don't want to 
    suffer through a long wait somewhere else.  
    
    Then they took 2 weeks to approve a used car loan, so in frustration 
    we went local.  It took from one afternoon to the following morning. 
    When dcu called with the approval we said no thanks.  We already had 
    the money from the local bank.  I've never been back.  10 years a 
    member but they don't treat you any better.  

        I am about to buy a used car, I haven't even picked it, but know
        the price range. I went to DCU, said this is how much I need, for
        this type of car, and they pre-approved the loan for me. A smarter
        way to go.
        
        
        q
        

I've been calling around about refinancing.  DCU's rates are as good as
anybody's, but their closing costs seem high.  I was quoted $2200 at DCU,
and anywhere from $1400 to $1900 elsewhere.  One mortgage company with
an almost identical rate to DCU quoted $1550 for closing costs.  Comments?

[Cross-posted in TALLIS::REAL_ESTATE]

Well, I used a mortgage company that estimated closing costs of something
like what you've heard outside the DCU, but I believe that my closing costs 
were actually more like what the DCU quoted you.  I'm not certain (it was
a year ago and there seemed like nothing I could do about it) but I was 
amazed at the number of line items that were on my closing form that
weren't on it a couple of years previously.  

Anyway, it could be that the DCU is charging too much to close, or it
could be that the DCU is being more honest.  To find out which, I'd suggest
that you ask for specific rates for lawyers fees and title search.

	Luck,
	Larry

Don't forget that all those fees can be changed/waived.  A mortgage broker
waived several hundred dollars of fees to get a friends business.

Bob

>anybody's, but their closing costs seem high.  I was quoted $2200 at DCU,
>and anywhere from $1400 to $1900 elsewhere.  One mortgage company with
>an almost identical rate to DCU quoted $1550 for closing costs.  Comments?

Hmmm... I just closed on a refinancing with DCU March 30 and the closing 
costs were within a $100 of the $1400 (I don't have the papers with me, but
I think they totaled almost $1500) they quoted me 5 weeks earlier.  Some of 
the closing costs vary by locality, but that's a $700+ difference.  Did you 
get the breakdown of those costs from them?

--Steve

I called back to get a breakdown, and found that their original figure was off.
The real figure (excluding prepaid interest) is $1731.  I found a place that
will do it for $1365, plus they'll come to my home for application and closing.
The rate's the same (well, DCU is 6.99% and they're 7% for 15 years, 0 points).
I decided that saving $365 and avoiding closing in an inconvenient location
outweighs the Metpay payroll deduction.

    I have just refinanced with the DCU and am questioning an issue
    pertaining to the closing costs.
    
    It appears that it is 'normal' to charge per-diem (daily interest)
    between the date the funds are dispersed to the date that the old bank
    recieves the payoff check.   What this equates to is me paying *double*
    interest all the while a large sum of money sits in the lawyers bank
    account (earning interest for the lawyer).   While it is only a period
    of one day (in my case, others I have heard take a few days), it does
    amount to $30.
    
    When I questioned the closing attorney and the DCU mortgage department
    about this issue I was very abruptly replied to with "..This is the way
    we always do it..".   When I made suggestions of how this might be
    avoided, they all but fell upon deaf ears.
    
    From what I can tell, this cost is typically 'hidden'.  That is to say
    it is *not* itemized on any of the closing papers (it would be included
    as part of the old bank payoff figure).
    
    Has anyone else challenged this issue ?  If so, what were the results ?
    
    /Russ
    

    Will DCU allow closing costs to be rolled into the mortgage for a
    refinance?

    
    Yes, as long as the amount borrowed is within their loan guidelines.
    

It's pretty standard to get stuck with those 3 days of double interest in
MA because of the 3 day right of rescission (sp?).  Since you can rescind
your refinance and get all your money back anytime in the 3 days following
the closing, the new bank does not pay off the old mortgage for those 3 
days in case you rescind. And they also don't let you waive your right. So
you end up paying both banks the interest for those 3 days.  It's aggravating,
but I can see their point event though I'd rather only be paying the interest
on that money once.

    Actually, I was *not* charged for double interest during the recission
    period.  The new mortgage (check for the funds) was post dated until
    the recission period expired.   The day after it expires, the lawyer
    cashes the check and writes a new check to payoff the old mortgage.
    That check is FEDEX'd to the old bank ($15 my charge) and at this point
    the double interest starts (while the lawyers earns interest!).
    
    /russ

I refinanced, using a friend who is a lawyer to handle the closing.

I asked him about the interest on the money while he holds it, and 
legally, it is NOT his money.  Any interest earned on either the
bank's or my checks are required to be turned over to the state
for use in paying for legal representation for those who cannot
afford it.

As for the "double" interest, I closed on the 15th and paid 15 days
of interest on the old loan, and 15 days of interest on the new loan.
(one of them must have been 16).  Or so I thought...

bruce