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Old 02-09-2018, 01:36 PM
 
66 posts, read 22,887 times
Reputation: 92

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I heard from friends (home owners) there's a lot of hidden fees and complications when it comes to private mortgage banks. I'm not sure if having a lower rate is worth the trouble?

I'm debating whether I should go with Citibank or this Chinese bank called Summit Mortgage.
I'm getting a 1 bedroom coop in NYC, Queens and I'm currently looking for a mortgage bank.
Summit is willing to give me 4.25% for 30 yrs based on my background while Citi is giving me 4.375%.

Help please, first time home buyer here.
Also apologies for my ignorance in advance..
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Old 02-09-2018, 02:06 PM
 
1,536 posts, read 846,328 times
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Simply ask them about points and fees. Tell them your uncle warned you about "junk fees," they will know exactly what you mean. That couple on Flip or Flop pay 2%...per month. During the crisis, I saw a hard money lender doing 10 5/8% on a 15 year fixed...with 30% down, BTW also 30 points..all legal. And if you bought a house at 75% off, which was common in 2011 Phoenix, it may have been a very wise move.
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Old 02-09-2018, 02:14 PM
 
66 posts, read 22,887 times
Reputation: 92
Quote:
Originally Posted by Hal Roach View Post
Simply ask them about points and fees. Tell them your uncle warned you about "junk fees," they will know exactly what you mean. That couple on Flip or Flop pay 2%...per month. During the crisis, I saw a hard money lender doing 10 5/8% on a 15 year fixed...with 30% down, BTW also 30 points..all legal. And if you bought a house at 75% off, which was common in 2011 Phoenix, it may have been a very wise move.

I'll be putting a DP of 45% to get my DTI to be at least 28% which is the max requirement of the building.
I just wanna make sure i get as low of an interest rate as possible so I can lower my DP (I need some cash for other investments + renos + etc..).

So all I should worry about are the 'junk' fees? Otherwise private banks can't really 'scam' you right? Idk what I'm saying here..

I just don't want a situation where I'd have to all of a sudden pay double my mortgage 10 years from now.. or whatever.. I don't know what I'm saying.. Christ..
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Old 02-09-2018, 02:52 PM
 
1,536 posts, read 846,328 times
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It is either going to be fixed or adjustable in 99% of cases. Get a fixed and only worry about HOA fees and taxes going up....you could always convert to Islam and bank with them...Old Mo told them to never charge interest....look out for the points, though.
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Old 02-09-2018, 02:57 PM
 
66 posts, read 22,887 times
Reputation: 92
Quote:
Originally Posted by Hal Roach View Post
It is either going to be fixed or adjustable in 99% of cases. Get a fixed and only worry about HOA fees and taxes going up....you could always convert to Islam and bank with them...Old Mo told them to never charge interest....look out for the points, though.
What are points..?
oh i know about HOA fees.

I just don't know if I should 'trust' these private/chinese banks..
My friends tell me to go with Citi/Chase/Wells Fargo.. But some of them also went with private banks.

What is the risk of going with a private mortgage bank?
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Old 02-09-2018, 03:17 PM
 
1,536 posts, read 846,328 times
Reputation: 1163
They have to be licensed in your state. They are buying the house and you will Gert a deed, but then you will sign a deed of trust with the loan details. Your title will be guaranteed by title insurance. I would avoid coops like the plague, but I know that is very standard in NYC.
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Old 02-09-2018, 03:51 PM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
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Quote:
Originally Posted by CoOpUpUp View Post
Also apologies for my ignorance in advance..
Remember the advice to lawyer up?
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