So I refinanced last year down to a 4.5 but rates are so low it would be nice to do it again. Thing is I don't want to drop cash on closing because I just did that last year. I've seen different companies offer the No Cost Refinance where you pay a higher rate and they cover all or most of you costs since they sell the mortgage for a premium since its a higher rate.

Got a quote from DNJ Mortgage for 3.75% on a 15 yr refi (Current rate is just below 3.5%) with next to no cost and it will end up saving me around $100 bucks a month which will cover the cost to me in a month. Anyone have any experience with the DNJ or another situation where you did a no cost refi?

9/14/2011 5:42:36 PM

DNJ sucks, they will scam you in some way.

Call Coastal : https://www.coastal24.com/index.html

They have lower rates right now, and you can always take a rate bump with most all lenders and get a closing cost credit.

9/14/2011 5:53:22 PM

^Any specifics? I checked BBB and only saw 2 complaints against them and didn't have a terrible feeling about the agent but was worried about hidden costs etc.

9/14/2011 6:01:47 PM

Quote :

"DNJ sucks, they will scam you in some way. "

yeah, how about some data on that?

9/14/2011 6:17:10 PM

^DNJ went in the shitter because they did almost exclusively Sub Prime loans. Now they are a subsidiary of Gateway bank. I personally think the service won't be great, they will finance in a bunch of bullshit fees, they will sell your mortgage as soon as possible, with limited back end support. Maybe it will be a great lending experience, but they aren't someone I would recommend.

Go try North State Bank, State Employees FCU (If you can), Coastal FCU, or BB&T of Capital Bank and you will have a much better experience in my opinion.

[Edited on September 14, 2011 at 8:36 PM. Reason : .]

9/14/2011 8:35:53 PM

Quote :

"they will sell your mortgage as soon as possible, with limited back end support."

that's pretty much going to happen anyway

9/14/2011 8:42:56 PM

^Most, if not all, credit unions do not sell their mortgages.

9/14/2011 9:22:57 PM

Who gives a fuck if they sell your mortgage? The way I see it, the more times those fucks try to use MERS to play MBS shuffle the better shot I get a chance at living rent free for awhile if my back is ever against the wall on making the payment.

9/14/2011 9:24:40 PM

Quote :

"DNJ sucks, they will scam you in some way. "

Quote :

"I personally think ..."

so no facts, just preconceived notions?

9/14/2011 9:45:39 PM

^
Yeah, if it is just preconceived bs, I had been thinking about giving them a call.

9/14/2011 10:35:13 PM

Use DNJ....they are great!

[Edited on September 15, 2011 at 7:15 AM. Reason : .]

9/15/2011 7:15:04 AM

Hold up a minute. DNJ is fucking fabulous. I have used them for 3 refinances (2001, 2004, 2011). The third one closes tomorrow. Only took 3 weeks from initial paper work to closing, it is costing me absolutely nothing, and only cost me about .15 basis points higher than a conventional loan with $2000+ in closing costs. I have sent probably 5 or 6 people to them, and they have all been thrilled.

use Sherry Riano. She is awesome. Send me a PM for her contact information.

Quote :

"DNJ sucks, they will scam you in some way."

Honestly, what type of horse shit is this? Can you provide specifics, or are you looking to get sued?


[Edited on September 15, 2011 at 9:47 AM. Reason : .]

9/15/2011 9:45:48 AM

What rate did you get?

9/15/2011 9:46:43 AM

Rates have come down a bit since I rate locked, but I am at 3.85 for 15 year. I'd probably get about 3.65 if I started the process today, but its not a huge difference. before I called them, I called Bank of America (current lender), and the best they could offer with $2000 in closing costs was 3.75, so the DNJ rate was acceptable.

If you are willing to pay closing costs, there looks to be rates below 3.5 if you go to some more obscure lenders.

Bottom line, DNJ has been there for me multiple times, always delivered, always on time with closing. Last year they worked me up for a pre approval of a large home my wife and I almost purchased, when BB&T was throwing a fit that the neighborhood we were buying in was distressed. Stick with Sherry and her team and you'll be in good hands.

They always sell your loan. Its normal. I have ended up with a major lender everytime. That's how they make money. the sell packaged mortgages to other lenders. You aren't paying for fees financed into the loan, either, as mentioned above. Amazing misinformation from this one person.

[Edited on September 15, 2011 at 9:56 AM. Reason : .]

9/15/2011 9:48:54 AM

I just refinanced through Randolf Bank & Trust (Gordon Miller). You've probably heard his commercial on 99.9. They do a no closing cost mortgage, nothing rolled into loan, nada. You have to pay for the appraisal ~$375, but it gets reimbursed at closing. I refi my 30yr fixed from 6.25% down to 4.75%, but my credit score did not breach the 720 thresh hold. Will end up saving me ~$220 per month. They have been very helpful thus far, but the loan will be sold to GMAC and serviced through them

9/15/2011 9:49:57 AM

^just illuminated the point I was making.

Rates are currently around 4 flat or 4.125, so whereas you payed "nada" for the closing, you are paying with .75 or .625 over the life of the loan. Thats real $$$

9/15/2011 10:03:24 AM

^^^again, enjoy DNJ and enjoy the self congratulations for that 3.85 rate.

For example Coastal is at a 3.25 right now for 15 year fixed money. Not an "OBSCURE LENDER", but a good local outfit. Suntrust, BB&T, North State all have similar products.

If 2k isn't worth a half a point to you over 15 or even 30 years, than you went to the right place, but I know for a fact at these other lenders you could take an 1/8th of a point bump, or even 1/4 and cover most if not all of your costs. So you could end up at 3.5 with the same result. DNJ is making money off you, they will get you at the highest rate they can because its worth more to them on the back end. I am by no means saying they are bad people, just businesspeople.

Again, good luck with all of your mortgages, I was only commenting on a Lounge thread because I know a bit about the business and I think you could do better.

There is no misinfo by me, brokers make money 2 ways, either financing in fees on supposed (no closing cost products) or giving you a higher interest rate than the current market rate so they can sell the loan for more cash.

[Edited on September 15, 2011 at 10:12 AM. Reason : .]

9/15/2011 10:09:50 AM

No, he is not making your points. Rates are that low for excellent credit. He admitted having a sub 720 score. He will not get the best rates.

And you are comparing today's rates to my rate lock that is about 1 month old. Rates have come down. The real penalty is about .10 to .25 over most lenders.

Plus, most people refinance multiple times. If you keep paying those closing costs, you'll never make up the money lost, and the money you save with a lower rate will not be made up in the time between refinances or before you sell your house. If you are planning on selling the house in 3-4 years, it's highly unlikely you'll ever recoup those funds.

And trust me. I know about the mortgage business. I own 4 homes and have lots of experience in this realm.

[Edited on September 15, 2011 at 10:15 AM. Reason : M]

[Edited on September 15, 2011 at 10:19 AM. Reason : J]

9/15/2011 10:10:54 AM

Good luck to all. I am done arguing. Just trying to offer some helpful advice, not getting into pissing contests about local lenders. I know plenty about DNJ, but this is neither the time or the place.

CarZin, I am happy that you have a local lender that has helped you multiple times. You should recommend them to everyone, and support them just as you are doing. My experience with that particular company has been different, but much like looking at any internet reviews, opinions will differ.

Lionheart, I am glad you are refinancing. If you can get it done with no closing costs, and move from 4.5-3.75 that is an advantageous move for you.

Again, best of luck to all, and I am happy there are so many positive comments/reviews on the local mortgage industry in here (its usually quite the opposite)

9/15/2011 10:19:44 AM

Dnj is the only consistently good thing I have experienced in the banking/mortgage industry. I thought my relationship with BB&T was going to be this way, but it hasn't.

Wolf, no offense was intended. However, I have found that there are no absolutes in this area. There are plenty of situations where paying a higher rate is the financially smart thing to do if you can close with no costs. I think a lot of people here are in starter homes, and will more likely than not be moving inside of 5 years. Makes recouping closing costs very hard

9/15/2011 10:31:04 AM

Quote :

"Last year they worked me up for a pre approval of a large home my wife and I almost purchased, when BB&T was throwing a fit that the neighborhood we were buying in was distressed."

Why blame the bank when they are trying to be a responsible lender? They didn’t say you are not eligible for a loan. They said they cannot lend you money for that particular neighborhood. You should be thanking them for indirectly educating you on risks of investing in that particular neighborhood.

9/15/2011 10:42:33 AM

Trust me, you don't have nearly enough information to make that statement. Neither did BB&T.

There was another situation recently with a boat loan. I qualified completely by myself for the loan. I bought this boat with a friend of similar income and credit. They would not sign a loan with multiple applicants, even though we both qualified individually for the loan. It basically was the final straw in realizing they have gotten overly conservative. We had no problems with other lenders.

In this refinance, I have also closed my equity line with them, which puts me one step closet to ending the relationship altogether.

[Edited on September 15, 2011 at 10:55 AM. Reason : K]

9/15/2011 10:50:32 AM

DNJ Fucked me when I was trying to close on my first house..



60 DAYS LATE, Fuck DNJ

[Edited on September 15, 2011 at 10:51 AM. Reason : DNJ SUCKS]

9/15/2011 10:50:52 AM

Last point, I promise.

CarZin: I am 100% behind your theory, hell, I took a rate bump/credit when I closed, just think you can take a closing cost credit and still get a lower rate if you shop around.

9/15/2011 10:55:38 AM

Quote :

"There was another situation recently with a boat loan. I qualified completely by myself for the loan. I bought this boat with a friend of similar income and credit. They would not sign a loan with multiple applicants, even though we both qualified individually for the loan. It basically was the final straw in realizing they have gotten overly conservative. We had no problems with other lenders. "

Again for many bankers this is a very risky transaction. Partnership on a private leisure item to be financed makes no sense to many conservative bankers, especially when the said leisure item is going to depreciate continuously. No matter how good your personal financial position is, it is a transaction that is not worth the risk for a good banker.

9/16/2011 9:03:54 AM

Yeah you cant categorically say XX situation is never worth it, etc.

In my situation i went from 6.25% to 4.75% with no closing costs. Yes I understand there is a spread on that, but as i mentioned my credit is not where it once was. Im also just below the MI 80% LTV threshold, so if i roll closing costs into my mortgage i would be over that threshold and have to pay MI. I can also refi in 90 days with randolph, again no closing costs. So as i pay down debt and credit queries leave my credit report, i can refi again at a lower rate. Plus I doubt I will be in my house 4-5 yrs from now

Point is, each situation is different, and paying for points or closing costs is not categorically right or wrong.

9/16/2011 9:51:23 AM

Closed on my refinance this morning with DNJ. No surprises. 30 minutes and done.

9/16/2011 10:12:57 AM

Yeah ultimately I just paid closing costs last year so I'm not looking to go that route even if it gets me a better percentage, so I really was just trying to see what rate I could get on a no closing cost. I'm open to alternatives but most of what has been listed are CUs which I'm not eligible for. Additionally most banks require you have an account and its not usually in a banks best interest to do the no closing cost so thats not as easy to find in any of the banks I use.

9/16/2011 10:42:22 AM