My new home loan finally closed, saving me hundreds of dollars a month. This simple paper transaction is full of inefficiencies. Cost is $4000 to me, another $6000 to the lender to pay off my mortgage broker. Poof!
Of my $4000, $1400 is for a new title insurance policy just in case, you know, somehow the title went bad in the last year. Another $700 is to pay the escrow agent who never returned my calls and delayed funding a week because they gave the lender the wrong routing number. For 3 days I pay interest to both lenders - in the 21st century it takes 72 hours to move money around the US. Another $1900 in random fees - appraisal, "document fees", etc, total junk.
Why don't banks just let their lenders adjust rates downward, saving everyone the trouble of refinancing and keeping the customer? I tried calling my original lender; they never even answered the phone.
Crazy thing is with this inefficiency I still come out ahead.