m2c
Joined: 03 Aug 2005
Posts: 764
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| Posted: Fri Aug 15, 2008 4:56 pm Post subject: |
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Closing costs are really “mix and match” with rate and it can be advantageous to you to take a small junk fee in lieu of a 0.125% bump in the rate. Used to be all “junk” was figured in a 1% (base loan amount) origination fee since that went into determining the maximum loan amount. No longer and it’s been replaced by a 3% minimum cash “investment”. Some brokers retain the 1% origination fee solely, some 1% plus additional junk, and others no origination fee but junk.
Closing costs will vary by locality but Indiana shouldn’t be so bad. I’d ask for two or three quotes including GFEs with and/or without an origination fee to get a feel for the amount of junk. Junk items should be APR or prepaid finance charge items (ask for GFEs with itemization to make it easier on yourself). Easy to fudge a bit on an exploratory quote so you need to read the junk in combination with YSP bearing in mind that not all have to disclose YSP.
You might pm HAPLO. He’s a moderator on this forum but hasn’t been active lately. IN is in his neck of the woods and, from my conversations with him, he’s honest. |
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