Everbank Refinance Closing Costs

We closed last week on the refinancing of our primary mortgage. We ended up getting a 30yr fixed mortgage @ 4.375% for $256,000 through Everbank. We decided to maximize what we borrowed at this low rate and will use the additional ~$20k borrowed to pay off part of a higher rate mortgage on a rental property.

I thought it might be useful to some to see how our closing costs ended up evolving over the course of the refinancing process. Here is the initial unofficial GFE numbers I viewed on Everbank's website before applying:

Unofficial GFE From Web Site	Estimate	My Estimate*
Everbank Origination Fee	$ 541.95	$ 541.95
Closing credit for IR 4.375%	$ (913.92)	$ (913.92)
Appraisal	$ 390.00	$ 390.00
Credit Report	$ 15.50	$ 15.50
Tax service fee	$ 74.00	$ 74.00
Title services and lender's title insurance	$ 1,280.00	$ 800.00
Flood certification fee	$ 15.50	$ 15.50
Gov recording charges	$ 84.00	$ 84.00
Costs	$ 1,487.03	$ 1,007.03

*My Estimate is lower because I was assuming that the title insurance would be significantly lower by taking advantage of title insurance re-issuance.

If you assume a $47/mo initial net monthly savings from refinancing I would roughly cover my costs @ $1,007.03 in about about 2 years. After I started to apply and talked to my loan officer and hymning and hawing about the closing fees, the loan officer agreed to through in a credit at closing for the appraisal fee if a went ahead and applied.

Once I applied the official GFE looked like this:

Official GFE with Application	GFE Estimate	My Estimate
Everbank Origination Fee	$ 541.95	$ 541.95
Closing Credit for IR 4.375%	$ (913.92)	$ (913.92)
Appraisal	$ 390.00	$ 390.00
Appraisal Credit	$ (390.00)	$ (390.00)
Credit Report	$ 15.50	$ 15.50
tax service fee	$ 74.00	$ 74.00
Title services and lender's title insurance	$ 1,280.00	$ 800.00
flood certification fee	$ 15.50	$ 15.50
Gov recording charges	$ 84.00	$ 84.00
Out of Pocket (Excluding Pre-paid)	$ 1,097.03	$ 617.03

*My Estimate is lower because I was assuming that the title insurance would be significantly lower by taking advantage of title insurance re-issuance.

The good news is that my expected closing costs were headed in the right direction. With net closing costs @ $617.03 it would take me just over 12 months to cover my closing costs assuming a $47/mo initial net monthly savings.

Here's what the HUD statement ended up looking like:

From HUD-1 @ Closing	Estimate
Everbank Origination Fee	$ 541.95
Closing Credit for IR 4.375%	$ (913.92)
Appraisal Fee to First American	$ 390.00
Appraisal Credit from Lender	$ (390.00)
Credit Report to CREDCO ($15.50 + $4.50)	$ 20.00
Tax Service Fee to Lereta	$ 74.00
Settlement of Closing Fee to ServiceLink	$ 700.00
Closing Fee Credit from Lender	$ (300.00)
Title Insurance to ServiceLink	$ 227.50
Mortgage Processing Fee to ServiceLink	$ 10.00
Tax Research Fee to ServiceLink	$ 35.00
Flood Certification Fee to Elite Lender Srvcs	$ 15.50
Gov Recording Charges	$ 72.00
Out of Pocket (Excluding Pre-paid)	$ 482.03

Once I got the HUD statement before closing I realized that the settlement fee was way higher than I expected - I had been assuming a fee in the neighborhood of $400-$500 in line with previous mortgage closings. This is where I felt Everbank was being intentionally vague on its GFE not spelling out what was covered by the title services estimate. In retrospect I should have drilled into that line item more on the estimate instead of just assuming it was primarily title insurance.

I immediately contacted my loan officer and asked for an additional credit to offset some of the settlement fee or I was not going to proceed with the closing. He quickly offered a $300 credit to prevent any issues with closing. As a result my final costs were slightly better than expected and assuming a $47/mo initial net monthly savings we will be able to cover our closing costs in just over 10 months. In the end I am pretty happy with what I received and my experience with Everbank.

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Comments (9)

found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later

Posted by physical therapist | August 23, 2010 7:42 PM

How does that "Closing Credit for IR 4.375%" work?
Will you get a lower IR if you don't get this closing credit?

Posted by J | August 24, 2010 1:02 AM

J - y they offered a variety of rates from 4.125-4.375% - the lower rates you had to pay points, the higher rates were offered with credits.

Posted by 2million | August 24, 2010 11:00 AM

Where are they based? I've never heard of Everbank.

Posted by Joseph Marchelewski | August 26, 2010 3:03 AM

To be honest Im not sure where they are based - maybe FL? I found them online and have used them for 2 mortgages so far. I believe they work very similar to Quicken, or ING, handling everything remotely and bring someone to your house to handle closing.

Posted by 2million | August 26, 2010 11:38 AM

I am in the process of working with EverBank on a refinance. I have had a VERY difficult time with the refinance and am finding (of course after they collect their $350 deposit) that I am constantly having to follow up with them to get information regarding my loan. I even left a message for a supervisor (Alex) who has not given me the courtesy of a return call. I WOULD NOT recommend EverBank to refinance as my experience has not been positive. And of course if I go somewhere else they keep my $350 deposit. There should be some rules regarding refunding the deposit if they can't fulfill simple things such as returning phone calls and emails.

Posted by Michele, Atlanta, GA | October 28, 2010 11:37 AM

We would NEVER do business with Everbank again. After enticing us with a low rate and the promise of a $1200 credit they let our rate lock expire despite having ALL needed documentation. We had to BEG to keep our rate because they had started to increase. We lost the credit they promised, we had to pay an additional $950.00 to keep the rate (they made us feel like they were doing us a favor) AND because they told us not to pay the mortgage because we were going to close before the 15th of the month... WE DIDN'T! We were charged a $116.00 late fee by the current mortgage holder. We paid an additional $2,266.00 to close this loan. Run do not walk away from Everbank. Then they had the nerve to call us regarding their financial services..ya right!!!!!!!!!

Posted by susan costello | January 7, 2011 6:22 PM

Wow I am in the middle of a refi now, and not super exicited about the rate being offered. I did a check on bankrate.com and found Everbank- then did a little searching and found this site.

I hate doing refi's because everyplace likes to waste your time and give you tons of hassle with little return in the end, - sounds like Everbank is one of them. Glad I found this site and heard the horror stories, I think I'll pass on these guys.

Everbank, if you are listening, this is the age of the internet and people talk to each other now.

Its time these refi's became more organized, and less like car-haggling.

Posted by brad | February 1, 2011 10:58 AM

I am in the middle of a refinance with Everbak, and I agree that is has been the worst customer service experiences of my life. I started the paperwork at the end of February and I was told I would close before the end of March. I called last week to find out the status of my loan, as the loan officer has not been very aloof during the whole process. He never returned my call. Today I get a call from a new 'loan specialist' saying they're were about to submit the application to underwriting. I said that I had been told that had already happened weeks ago. I don't know what to do, pull out, lose my deposit and the money I have already paid. Wish I had stuck with PenFed, they were having a no fee refinance, but it was going to take 60-90 days. By all accounts that I have read, they have beaten those estimates and closed on most applications within a month. I would rather be warned about a long process and then pleasantly surprised, then promised a quick closing and then have the process be drawn out. Please stay away from Everbank-- they are not worth the hassle!

Posted by Lauren | March 31, 2011 3:08 PM