High Closing Cost on Small Loan? - Posted by Tony Newbie

import · April 10, 2006, 2:46pm

Posted by ken on April 10, 2006 at 16:58:38:

You need to look at the hud1 closing statement.You may have paid the seller back for taxes they had paid already that may have been paid through the end of the year,that may be a substantial amount of money.Review the statement and it will tell you where it all went.

import · April 10, 2006, 2:46pm

Posted by Tony Newbie on April 10, 2006 at 14:46:28:

Friends,

I need to know why is it that a loan for 44,000 costs me
$8,000 to closed on this HUD home. And what is a California discloser? My lender told me not to worry about those numbers which were very high numbers because they will not affect my loan and I live in Maryland.
Help!
Newbie Investor

Thanks

import · April 11, 2006, 12:10pm

Re: High Closing Cost on Small Loan? - Posted by Brandon

Posted by Brandon on April 11, 2006 at 12:10:21:

Tony,
You should always expect higher up-front costs on lower value loans (i.e.,

import · April 10, 2006, 9:38pm

Re: High Closing Cost on Small Loan? - Posted by dealmaker

Posted by dealmaker on April 10, 2006 at 21:38:19:

I’m not sure about some things. Have you already closed on this? If so, too late to worry. Tell your lender that you worry any time your closing costs run EIGHTEEN PERCENT of a deal! Tell them you REALLY WORRY when some jerk tells YOU not to worry about your money. If you don’t worry about it, who will?

However, in my experience low dollar loans, let’s face it $44K is a car loan anymore, cost a higher percnetage than high dollar loans due to simple math.

The lawyer, the typist, the girl who answers the phone, the surveyor, the inspector, the title company clerks and underwriters, in short, EVERYONE in the process gets paid the SAME SALARY whether you borrow $500K or $44K, hence the hihger percentages.

So the points and origination fees are going to be higher.

This is why I quit borrowing money about 15 years ago, it’s just TOO DARN EXPENSIVE. I pay cash for all my deals, quicker, cleaner and EVERY idiot I approach understands what I’m talking about. Most “investors” are in pitching L/0s, CFDs and other things that the average seller can’t understand. Everyone understands cash, and I save that EIGHTEEN PERCENT that you threw (or are going to throw) away.

dealmaker

import · April 10, 2006, 6:28pm

Re: High Closing Cost on Small Loan? - Posted by dutch

Posted by dutch on April 10, 2006 at 18:28:57:

When a lender or mortgage broker tells you, “not to worry about those numbers”, then RUN LIKE THE WIND. And don’t look back.

Did that loan come with Vasoline?

Dutch
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