02-10-2012, 06:29 PM
tenders wrote:
When you refinance, oftentimes you can refinance with your existing lender through a process called reassignment, which sidesteps an expensive mortgage tax.
The existing lenders know this, of course, so the interest rates they offer on a refi can be a little higher and still save the homeowner money.
This does not explain the divergence of the rates you're looking at. I have no idea what would cause that discontinuity, or why they traded so similarly beforehand.
What is this "expensive mortgage tax" that you mention? Are you referring to points? I'm in the middle of refinancing and in my "Good Faith Estimate" there is no such entry. I am refinancing with my same mortgage company - a credit union.