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Greg Katz: Why is refinancing a mortgage so expensive?

could you put in your contract that your loan not be sold to other investors? that way the title is always known it's whereabouts so a title search is not needed

Years ago I refinanced my loan with the same lien holder and costs were minimal because I stayed with the same contract holder. Is this still applicable in refinancing to same lender? It should be law that any home mortgage contract holder be listed in contracts and accountable to the buyers. Then if a contract is sold or subdivided to other investors the home buyer should be notified who has their contract. A loan servicer is just that, a collection agency. A bank or lender selling their contract is violating a contract that home buyers sign. The home buyer contracts with the financier and not other investors and this makes the contract null and void, at least it should if contract laws are obeyed. When buying a home the buyers should look for this clause to sell your contract to the highest bidder and request it be removed. When signing contracts the buyer has the right to refuse to sign if not as agreed with no consequences or threats to be sued. You can also sue the mortgage company for violating and altering any previous agreements. The law is on the buyers side before they sign any document.

When you sign a contract (closing documents) there is a servicing disclosure that states that your loan could be sold...If mortgages weren't able to be sold, banks wouldn't be able to manage their assets and liabilities. It is still beyond me how the average homeowner believes that they can negotiate a mortgage loan on their own terms. If you would like to get a loan on your own negotiated terms, that's called hard money lending and you will be paying probably about 5-10% in up front fees and have an interest rate around 10-20%...then you can take out that silly pointless servicing disclosure. As long as you are borrowing their money, you have to play by their rules. When you become the lender, feel free to negotiate whatever you would like... When you sign for a mortgage loan, What you agree to is a certain payment, by a certain date (this is on the note). That is all you agree to...

I called Ditech about refinancing our mortgage. Even with excellent credit, the cost quoted to me to refinance was $6,000! I understand there are costs involved, but $6,000 for a loan that's under $150,000? I'm still flabbergasted!