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.