Mortgage Nightmare

My mortgage company is causing me nightmares. They want me to pay 2.5 points Lender Lock fee which is $3,750.00. This brings my clsoing costs to $8,546.76. Hey, I just don't have it.

Guess I'll be renting for a while longer. :cry:

and die. Keep shopping.

I'll quote you on that!

The way the brokers are scrambling, there's no way you should have to pay that much for a lock. Really, you shouldn't have to pay for a lock at all, unless your credit is incredibly bad, and even then, you wouldn't qualify, anyway.

Go to your local bank, where you have some kind of account. Beware of mortgage companies!

I am a MLO (Mortgage Loan Originator) and wouldn't pay that myself......

Shop around. There are better deals out there and most private MLOs will undercut the "other guy" at the drop of a hat....

I must be really lucky. I'm dealing with two programs: The Genesis Program which is down payment assistance and The ACORN Program which is homebuyer education allowing me not to have to pay PMI.

With all of the concessions, my closing costs should be about 0.

My mortgage is through Bank of America. I'd hate for you to have to lost out on a house.

:-(

checking in.

Lender Lock-in fee is way too high! Are you dealing with a broker or are you dealing directly with a mortgage company?

It shouldn't cost anything to lock in a rate. If they have offered you a good rate they should quote the discount you're paying to get the rate instead of hiding it in a lender lock-in fee.

BofA has an 800 number and you can have your existing file transferred to BofA if you like what you hear from BofA after you talk with them. There are also other reputable mortgage companies that are affiliated with banks or aren't affiliated with banks.

Have you spoken with your bank yet to see what they have to offer?

If I'm not mistaken, you can borrow/include in the loan amount the money to cover all closing costs.
Of course this means that you're paying off the closing costs (and paying interest on them) over the life of the mortgage.
The 2.5 points MIGHT be tax deductable, so you'd get a portion back next year.

It still seems you'd be better off with tax deductible interest payments than rent.

I am getting a $5000 concession from the seller to use as down payment and closing costs. That amount was tacked on to the agreed-to selling price, so in a sense, I'm borrowing that amount and paying it off over the life of the mortgage.

Check into The Genesis Program. Not sure if other lenders use it, but Bank of America does.

I remember that we barely squeaked into our house years ago...and as I recall the real estate agent made a mathematical boo boo and omitted some stuff we were supposed to pay for....and we ended up finding out two weeks before closing that we would need $2500 more...luckily we had a bit of wedding money packed away but it left us without much savings...which is scary since we wanted to have a little bit of cash around in case something went awry...

by the way what the hell is a lender lock fee???? I have never heard of it and it sounds like some sort of scam.

But I've been told by others I don't need it. Funny thing is I put a contract on a home that cost about 30,000 less than I qualified for so I thought the closing costs would be less, not more.

Tell em that you are going to call your state rep and find out if it is legal for them to charge you that fee if you aren't interested in it...

With interest rates still low and with no sudden spikes about to happen it seems they want to scam some extra cash off of you...

if you threaten them with turning them in to your state govt...they may back off and play nice.

your in a contract to buy a house, that appraised for less than the contract price, and is currently in foreclosure proceedings, and your getting fsck'd on your mortgage.

run. run fast. this deal doesnt sound kosher at all.

thank you very much for recommending it. I appreciate your help!

Nancy

My inspection is scheduled for tomorrow. :scared: I just hope they don't find anything too scary. It's the last major stumbling block.

You can ask the seller to fix some things. If you do find major problems don't hesitate to back out.

I just found out about that last night too. It's almost a lucky thing that the property assessed for less than the value of the contract so I have an out.

All these fees are somewhat negotiable. I've had good luck with online mortgages. I actually have accounts at BofA and was offered their 'best' rate on a re-finance. I found a loan from BofA online that was at a lower rate. One warning--use a free email just for the mortgage stuff and then never look at it again. You will get endless spam once you sign up at one of these mortgage sites.

As others have said, you could roll that fee into the mortgage. I would make sure that's the best deal you can get first, though.

They came back to me with a reduction in half (about $4,000) of the closing fees but raised the rate to 6.5%. I told them that was unacceptable. I may lose this condo but my real estate agent is with Coldwell Banker. I think I'll have better luck with his guy for the next place I look at.

While you're looking at other stuff, you might want to play around on ELoan.com. Sometimes good rates turn up there. Good luck! :)

Good luck!

You **can** get a far better deal -- it's just "white-knuckle" time until it turns up, but it will.

I had good luck last year with the mortgage broker who worked with my realtor (Remax). There were some phone calls back and forth, and a little bit of anxiety, but I finally got locked in at an outstanding rate.

Hang in there!