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you may get the par rate, but you will be large fees in the front.
most brokers charge an average of 2.25% with front/back, and most banks charge around 3.25%.
Make sure to look at the note rate.
Banks dont have to disclose their YSP, and they usually try to tell the borrowers that brokers charge too much YSP.
At the closing table you will notice that banks charge a higher rate with higher fees.
Also, even if there is no YSP...you still need to shop around.
you may get the par rate, but you will be large fees in the front.
most brokers charge an average of 2.25% with front/back, and most banks charge around 3.25%.
Make sure to look at the note rate.
Banks dont have to disclose their YSP, and they usually try to tell the borrowers that brokers charge too much YSP.
At the closing table you will notice that banks charge a higher rate with higher fees.
Also, even if there is no YSP...you still need to shop around.
Thanks-
Can I negotiate the YSP with a broker to help pay some of the closing costs or for them to rebate back some to me at closing or is this illegal?
If you get charged 1% in fees.....why would you want the lender to raise the rate higher just to pay that fee?
You either pay the fee in the front or in the back.
Either way ...you're going to pay for it.
Dont look for a lender to 'pay' for your closing costs.
This will put them in a position to charge you more...and with the bank you wont even know that they're making a lot more than the original offer.
If you get charged 1% in fees.....why would you want the lender to raise the rate higher just to pay that fee?
You either pay the fee in the front or in the back.
Either way ...you're going to pay for it.
Dont look for a lender to 'pay' for your closing costs.
This will put them in a position to charge you more...and with the bank you wont even know that they're making a lot more than the original offer.
Ask the seller to pay closing costs
I dont believe I mentioned asking the lender to charge me a higher Yield just to pay the 1% fee.
In NY i'm looking at $20K+ in closing fee's- and thats on a FHA loan with less then 3% down.
I'm already lowballing the seller significantly so I dont know how much more the seller can bear.
A little help paying the 1.80% NYC Mortgage Tax would be great considering it looks like my mortgage will be around 300K.
sorry....i was referring to your original question about 'par rate'.
If you ask for 'par rate' then the lender may charge more in the front.
If you want them to pay for closing costs....and you're are par rate...they will raise your rate.
If they're willing to pay for your closing costs at 'par rate' then you're not at par rate.
attorney/title company determines the rest.
The attorney determines by when taxes are paid, and they add the 2months cushion
Quote:
Originally Posted by BK2Westchester
on a related note:
on FHA backed loans, is there an amount for taxes that is escrowed at closing? (like 2-6 month advance real estate taxes)
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