Question about settlements costs (home purchase)

Chasey_Lane

Salt Life
I'd ask my lender, but I'm sure he's probably sleeping.

Anyhow, on a good faith estimate, are the "total estimated costs to close" separate from a down payment? My initial reaction is yes. Anyone know?
 

Rommey

Well-Known Member
Think of it this way:
A house costs $200K.
You pay $200K in cash.
You go to closing and you still need to pay all of your part of the closing costs. You know them lawyers and gubermint still want their cut.

The down payment is on the price of the house.
 

Aerogal

USMC 1983-1995
Unless you're going through a Fannie or Freddie for super low interest rates and need too, once again I have to ask the question - why go with a lender who charges closing costs? If you have good credit you CAN get a loan for only the amount. (only other cost would be taxes & maybe appraisal). I realize most people have a warm fuzzy about banks but I don't. I don't give a rats butt who get's my payment as long as I can set up an auto draft program.

Yes you have to go through a broker and you can get the lender that gives the best deal, but sometimes you can choose the one out of several.

And until you sign a paper you Don't have to stay with the lender you've been dealing with.
 
R

remaxrealtor

Guest
Unless you're going through a Fannie or Freddie for super low interest rates and need too, once again I have to ask the question - why go with a lender who charges closing costs? If you have good credit you CAN get a loan for only the amount. (only other cost would be taxes & maybe appraisal). I realize most people have a warm fuzzy about banks but I don't. I don't give a rats butt who get's my payment as long as I can set up an auto draft program.

Yes you have to go through a broker and you can get the lender that gives the best deal, but sometimes you can choose the one out of several.

And until you sign a paper you Don't have to stay with the lender you've been dealing with.

WOW...there are quite a few closing costs that have nothing to do with loan/no loan. Transfer/Recordation/Stamps.... 1%, .05% and $8/per thousand in St. Mary's which is then traditionally split between buyer and seller.
 

Aerogal

USMC 1983-1995
WOW...there are quite a few closing costs that have nothing to do with loan/no loan. Transfer/Recordation/Stamps.... 1%, .05% and $8/per thousand in St. Mary's which is then traditionally split between buyer and seller.

key word is 'traditionally'. I always go through Lenox financial for refi because I NEVER pay or have costs rolled into the loan. My mortgage is for the price of the house and any rolled in accounts but I stay away from that - I keep our debt very low. Period. I also pay for an appraisal but that is refunded back after the loan closes. I've not done a new home loan but I'm sure it's pretty close to the same except for the taxes (and those things you listed are all taxes).
 
W

wmsaunders

Guest
key word is 'traditionally'. I always go through Lenox financial for refi because I NEVER pay or have costs rolled into the loan. My mortgage is for the price of the house and any rolled in accounts but I stay away from that - I keep our debt very low. Period. I also pay for an appraisal but that is refunded back after the loan closes. I've not done a new home loan but I'm sure it's pretty close to the same except for the taxes (and those things you listed are all taxes).

A new home purchase and the costs associated with them are completely different from closing costs that are applicable in a refinance transaction. The comparison is "APPLES TO ORANGES".

I'd love to see what kind of rate you got from Lenox. I'm sure you were sold on a what appears to be a great deal by one heck of a former used car salesman. The no cost mortgage is a scam that requires great salesmanship, misdirection, and an unsophisticated client.

The fact of the matter is.... there is no such thing as a "no cost" mortgage. Many states have banned the use of the term "no cost mortgage" in any advertising practices. Lenox Financial Loan Officers and any other mortgage company that sells the no cost mortgage simultaneously sells a client into becoming a “serial refinancer” which is not looking out for the client. They are “churning” the client. It’s illegal in the investment world and it’s a violation of the broker/lender agreement in the mortgage world.
 
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