Costs for mortgage...did I misunderstand? - Posted by Cathryn


#1

Posted by Kristin on January 09, 1999 at 18:46:34:

Cathryn,
If I were you, I’d check to make sure he wasn’t quoting closing costs and lender’s fees total.
On A paper, the lender fees shouldn’t go that high.
Kristin


#2

Costs for mortgage…did I misunderstand? - Posted by Cathryn

Posted by Cathryn on January 09, 1999 at 17:51:06:

Checked in with Countrywide the other day to see if I could get pre-qualified before I go looking for properties. I told the loan officer I’d be looking for duplexes, that I’d be a non-occupant owner, that I had good credit (FICO 777 last time it was checked a few months ago) and asked him what his terms were and what costs would be associated with getting the mortgage.

1.5 points (Okay, seems reasonable for an investor.)
7 3/8% (Ditto)
$380 appraisal fee and $25 credit check fee.

No problem so far. Then I asked if he could give me an estimate of what other charges Countrywide would assess at closing.

“About $1900 worth.”

I managed to keep my jaw from dropping. Almost $2500 worth of costs, not counting the points? I had to get back to work so I couldn’t double-check that I’d understood him correctly. It’ll cost me that much just to obtain a mortgage?

Did I misunderstand? I know that there are always closing costs associated with the transfer of real estate (title, attorneys fees, etc. ) but that the mortgage alone would cost me almost $3500 (including points) seemed outrageous. What has everyone else experienced?


#3

Re: Costs for mortgage…did I misunderstand? - Posted by Greg Az

Posted by Greg Az on January 09, 1999 at 22:30:09:

I got a mortgage on my first deal and it cost me mucho bucks too, for all kinds of “garbage fees”. Now I use a $75K line of credit from the bank…cost $250 per year. One catch…you must have sterling credit and convincing ability to pay…I’ve used it on my last three deals and it’s worked great…


#4

Re: Costs for mortgage…did I misunderstand? - Posted by Laure

Posted by Laure on January 09, 1999 at 21:33:17:

I work with a commercial lending officer at my bank… not the mortgage dept. I pay 8.75% interest, plus appraisal… no points, no closing costs other than normal fees involved with title search etc. Last loan cost me aroung 400.00 for 150k loan, I think.

Laure :slight_smile:


#5

Re: Costs for mortgage…did I misunderstand? - Posted by PBoone

Posted by PBoone on January 09, 1999 at 20:21:20:

We pay anywhere from 2500 - 4500 on each deal. We too are A paper.
pat