Refinance Mortgage

I live in California, and I just refinance my mortgage. I found out that the mortgage processing company made about 1.2% commission of the loan amount. How much can a loan agent make? If the loan is $1 million, the agent could make $10k for just one loan. Is it the case?

The limit varies from state to state. In California, it’s 6% of the loan amount. I know of places that make 3 to 5 percent on every loan from people who don’t think they have a choice. Some states do not have limits. 1.2 percent is not bad. I average a little less than 1 percent total compensation, and I’m way below most of the market.

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Of course, judging the loan by how much the loan company makes (or has to disclose – direct lenders don’t have to disclose what they make while brokers do) is a good way to end up with a bad loan. Judge the loan by the loan the competition could have delivered to you. If one loan is a thirty year fixed at 6.5% with no points, that’s a better loan than 6.75% with one point. Doesn’t matter what the loan company made – you get a better deal with the first loan.

My mortgage loan is about to be sold to Chase and my payments will begin to be made payable to them next month. I would like to refinance but I live in a very rural area and there is actually not a Chase within 200 miles from me.

Can I refinance with them without being close to them? Would that be a hassle? Also I have an appraisal from about 3 months ago, can they use that appraisal or will they use their own and how will that work since I am so far away?

If you wish to refinance with another company you can have them arrange (thru the escrow or title company) to pay off the Chase loan. If you wish to refinance thru Chase, I would call them up and speak to them directly. The reason a bank has an appraisal done is to protect them- not you so they will very likely require that a new appraisal be done by someone they trust- but I would tell them about it and see what they say.