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The 6% might be a marketing ploy, the lender might not allow that much of a contribution. Even if they do I don't know why in the world your closing costs would be 6% of the loan amount. The norm is between 2.5-3% unless they are going to buy points for you to bring down the rate more.
The 6% might be a marketing ploy, the lender might not allow that much of a contribution. Even if they do I don't know why in the world your closing costs would be 6% of the loan amount. The norm is between 2.5-3% unless they are going to buy points for you to bring down the rate more.
That's right. The Countrywide loan officer is charging 4.5 point ($8,900 out of the $12,000 incentive) to lower the interest rate to 5.375% and lock it for 6 months.
He told me he tried to use all the incentive dollars given by the builder.
I am surprised your agent isn't able to get the 6% with another lender. Things to keep in mind. A lot of loans will only allow for 3% closing costs paid by the seller. When is the home going to be complete? Do you need it to be locked 6 months? Also, there are other fees at closing; attorney fees, taxes, insurance, HOA. Would you rather pay a higher interest rate or have no closing costs? Is this a fixed rate? 30 years? Is there PMI? How much is it?
I am surprised your agent isn't able to get the 6% with another lender. Things to keep in mind. A lot of loans will only allow for 3% closing costs paid by the seller. When is the home going to be complete? Do you need it to be locked 6 months? Also, there are other fees at closing; attorney fees, taxes, insurance, HOA. Would you rather pay a higher interest rate or have no closing costs? Is this a fixed rate? 30 years? Is there PMI? How much is it?
This is a 30 year fixed loan. Attorney fees, taxes, are also paid by the seller as part of their contribution. The home will close within 6 months. PMI is about $81 a month. The loan will be locked for 6 months.
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