Posted by Erin Stevens on December 31, 1998 at 18:02:48:
Paul,
You are right. My mind was apparently working quicker than my typing fingers.
I was explaining how the program the banker was proposing may require taxes and insurance to be escrowed. I skipped over the waiving that requirement and went straight to the points/rate issue.
If I misled anyone, please accept my apology as that was not my intent.
Had I proofread my message before posting, my response might have served as somewhat beneficial.
Posted by DavidV on December 29, 1998 at 23:42:23:
I am doing an 80%refinance on a rehab i am living in. The nice banker tells me i may have to pay a 1/4 point for insurance. Is 80% an industry benchmark for not having to pay mort. ins? Or is this another way to throw in a “garbage” fee?
Re: Refinance and mortgage ins. - Posted by Erin Stevens
Posted by Erin Stevens on December 30, 1998 at 18:48:50:
DavidV:
I am a Loan Officer for a mortgage company. I have never heard of what this mortgage banker is telling you.
Ed Garcia is right in that the industry standard is 80% LTV and below do not require PMI. DO GET A GOOD FAITH ESTIMATE TO SEE THE BREAK-DOWN OF ALL CHARGES!
NOTE: He may not have done a very good job of explaining things to you. The loan program that he is proposing may require that your taxes and insurance be escrowed. In such a program, the rate is either raised or points are paid. Just a little info for you.
Re: Refinance and mortgage ins. - Posted by Ed Garcia
Posted by Ed Garcia on December 30, 1998 at 24:51:42:
David:
Mortgage Insurance is charged on loans above 80% LTV.
You should not have to pay mortgage insurance.
On a real-estate loan, a lender is required to give you a good faith
estimate, which would give you a projected cost breakdown of
your loan.
I would request a cost breakdown, and go over each cost one by one.
Don?t be intimidated, you are in titled to have a clear understanding
of what you are paying to obtain your loan.
Re: Refinance and mortgage ins. - Posted by Paul Macdonald
Posted by Paul Macdonald on December 30, 1998 at 19:40:47:
Erin,
A quick question - why would someone pay MORE to have an escrow account? All my A lenders do the reverse, they charge for a borrower NOT to have an escrow account. They prefer and require an escrow on almost all accounts for the protection it gives them.