Experienced Mortgage people, I need your help! - Posted by ben250

Posted by M on September 24, 2004 at 11:23:51:

Wes-
you can very simply do the math with the figures given.

Experienced Mortgage people, I need your help! - Posted by ben250

Posted by ben250 on September 24, 2004 at 24:57:16:

I am applying for a mortgage. I have been quoted a rate of 9% (stated income), and a “COST of 36.875”.

What does COST: 36.875" mean? Does this refer to percentage as in 36.875%, or what? Or does it refer to “36.875 points” as in “$36, 875.00”, or what? I dont care about the 9% interest rate I am paying, my question is geared more towards what does “COST: 36.875” mean? That is what I would ike to know.

Please could any experienced mortgage people lete me know. thanks.

Re: Experienced Mortgage people, I need your help! - Posted by Matt Cordo

Posted by Matt Cordo on September 24, 2004 at 12:46:12:

Don’t take this the wrong way (nothing wrong with asking for 2nd opinions or help), but why don’t you simply ask your lender what this is and what it means or refers to?
Has your lender issued you a good faith estimate? Does it show closing costs and/or prepaid charges of $36, 875?
Where does this “Cost:36.875” appear? On the Truth in Lending Disclosure?

Re: Experienced Mortgage people, I need your help! - Posted by Devon

Posted by Devon on September 24, 2004 at 11:04:25:

That is extremely high, I assume the loan amount is probably not THAT high, so a cost of $38000 is completely unreasomable. Most lenders have “High cost loans” requirements (not necessarily sec 32) but they do not make high cost loans… most lenders start high cost loans as no more than 5% of the total loan amount can be obtained from customer (including origination, appraisal, title fees and lender fees)… so I am not sure what lender or broker you are using but that is the most ridiculous thing i have ever heard of! If I tried to charge any of my customers 38 points i would be out of business

Re: Experienced Mortgage people, I need your help! - Posted by wes

Posted by wes on September 24, 2004 at 10:46:27:

I guess before anyone can answer your question, it might be nice to know what size loan you are applying for and talking about…

That cost could be outrageous, could be a typo, or if it is a large loan, it might be acceptable even if it is $38,875.

You just haven’t given enough information!