What follows is a list of search terms that people typed into google with the result of eventually finding my website. My assumption is these are questions that need answered. So here’s my thoughts…
- Accuracy of zillow estimates – I answered this here. The short answer is, not very accurate, as Zillow’s own data demonstrate.
- Are recording fees junk – Not really. The deed of trust has to be recorded, the county clerk charges for this service, and so it’s a legitimate cost. The next thought is, “should the lender pay it?” The answer is, “It doesn’t matter.” The lender never has any source of funds other than the consumer, and so if the lender pays then the consumer will be paying as well. In the Denver region, recording fees are charged at $5.00 per page, plus a $1.00 surcharge. So a 12 page document will cost, $61.00.
- Average Credit Appraisal Fee – This search, or some form of it, comes up quite often. There’s two questions here. First, the average appraisal runs around $350.00. The average credit report fee runs about $18.00 for a single person, or $32.00 for a couple. See here for our current averages.
- Closing cost amount to refinance my residence – Good question. First, are we talking gross or net? In any transaction the gross amount runs from about $3,500 to $6,000, depending on loan amount. Our typical costs are $4,000 regardless of loan amount. That’s just our niche. The net amount will be reflected in an increase to loan size, or the payment of costs via premium pricing (higher interest rate than what’s available).
- Is the yield spread included in the apr – Yes. Yield spread is paid based upon the rate above the par rate. For example: if the par rate is 5%, and the loan is written at 5.25% then there is a premium that will be paid. That premium is reflected in the APR that has the starting point of 5.25%.
- refinance junk processing fee – The processing fee is junk. It can be avoided. Some company’s may use outside processing and so it’s a legitimate cost, but it should be absorbed by a reduction in yield spread or origination fee. If it isn’t then it’s pure junk.
- tax stamp junk fee – Nope. Tax stamps are a tax paid to the state or local government in property transactions. Now it may be junk as far as what the county charges, but the parties to the real estate transaction have no choice about it. Just like paying sales tax on a latte. It’s required, it could be absorbed either way, but absorption does not save consumers a dime.
