Refi loan Rebate/Points reasonable?

[Sarah Jukes]

6 months ago we got our 1st refi cash out against our home to purchase a rental property, plus a mortgage on that property. Costing us over $10,000 in broker/underwriter fees for the 2 loans. Our mortgage broker contacted me this week to say he could get us lower rates due to the China Trade Crisis. At the time he was the 4th broker we'd spoken to and the only one able to get us what we wanted. My Realtor is not satisfied with the broker's costs, saying he's not treating us fairly given we are now repeat customers. Realtor is saying the 'rebate/credit' is basically buying me a higher rate, and the Points are too high... It's based on bank statements, this is how we previously obtained our loans. At same time as reducing interest rate we will get more cash out to purchase a 2nd investment property. How does this look? My Realtor is calling other brokers to see if can get better deal.  We plan to pay off loans in 20 years, no plans to sell.

Here's what the broker is suggesting, it would be a new $700,000 cash out: 

Here's one for the cash out refi.
Last time the origination was 1.5%, and since you're coming back to us, I talked to my broker and was able to lower it to 1.25%.
The lender is giving a credit of 0.67 points = $4,690, which offsets the origination charge.
So the net to you is $4,060 or about half a point, which ends up being a full point lower than last time.
So we're lowering your interest rate from 5.625% to 4.625% with a net cost of about half a point.
All of the loans I do for conventional are no points, but bank statement loans are structured differently, with origination charges.

[Chris Mason]

Considering that many, myself included, refuse to offer non-qm bank statement loans AT ALL, for ANY price/fee/rate, you're doing great.

Behind the curtain in the magical city of Oz:

Non-qm bank statement loans take 3x as long, 3x as much work, same pay (or less), and at the end of the day all you get is a pissed off customer who thinks their rate is too high and fees were too much and that it took too long... that's not exactly a "growth" business model. By passing on the non-qm, I spend that same energy closing 3 qm loans resulting in 3 happy clients who will hopefully refer me to 2 or 3 others each.

I re-evaluate and try a non-qm or two once every year or so to see if things have changed. 

In the meantime, keep the above in mind, and I suggest sharing this post with your Realtor so they maybe watch the smack-talking about someone willing to risk their business by doing non-qm.