What is this escrow garbage? (fixed rate, renter, expensive, value)

[lhafer]

Originally Posted by CGab

You'll probably have PMI as well since you're not putting 20% down!


The only time you have that option is if you can put 20% down. If you can't than you do not have the luxury to say otherwise. The bank gets to call the shots because THEY are lending you money to buy a home. PERIOD! And the credit report will not be the only fee's you'll see when this is all done. Wait till closing!!

Actually, this isn't true. Some 3rd party financers have other options.

We just bought a house, put down 10%, will not pay PMI nor will we have an escrow account. But our lender is not a bank either, but rather a large financing company.


I wish our taxes will be $500 a year...but alas, they will be about 24x that.

[Mikala43]

The page I read said USDA loans have PMI, but less than traditional at .4%

[TooManyChoices]

Reading this thread is the funniest one of the day!

Good luck OP. Life comes at you fast sometimes.

[SFBayBoomer]

Originally Posted by juggar

I can get approved with any lender I choose. Every last one of them so far has said I have perfect credit and they are salivating at the chance to make some money. So many call backs its unreal.

I absolutely will demand they remove that fee. Otherwise ill just move on down the list. BET they call back and offer that $14 off. Guarantee you they will.

Chase offers me $500 towards down payment and 50,000 bonus points on my Chase Sapphire preferred. I think Quicken will credit the $14.

I have news for you: 750 is not a perfect credit score.

[juggar]

Originally Posted by Zenstyle

Why do you own "multiple cars?" One vehicle is enough. If you sold the rest off, you'd have more money for your house down payment.

I own TWO cars. That’s very reasonable for living out here, one new car, fuel efficient and with warranty and one utility vehicle. A wrecked 4x4 2007 Jeep Liberty I paid $2100 for at auction and fixed for less than $600 professionally. It does snow here, and I do have to go to the dump, etc.

I don’t Know if you think I’m some rich guy with a fleet of Ferrari’s but that’s NOT the case.

[juggar]

Originally Posted by SFBayBoomer

I have news for you: 750 is not a perfect credit score.

By perfect, it was meant there were no derogatory items on the report. A perfect payment history, nothing negative.

Secondly, multiple lenders spake to me verbatim “you have perfect credit”. One of them said since it was over 740, I’d get the best rate. Ergo, “perfect”.

[juggar]

Again, it’s not about the fact that $14 is “too much”.... it’s the principle of that fact that a lender making 82% of the loan back in interest would do such a thing. When you apply for a credit card, they don’t do this, and guess what? The credit reports all come from the same 3 companies so it’s not like home lenders have an excuse to be charging for them when literally no credit card company has ever done this.

I’ll be sure to update after I talk to the lender to hammer out the loan details. I will go with whatever works best, be it USDA, FHA or conventional. There is a first time for everything, and there can be surprises to those not experienced. I’m done renting, it’s time to move on.

[Mister 7]

The whole escrow thing confuses me, I leave it up to DH.

I can say that our mortgage did go down $30 this year due to our property tax appraisal lower, so they (my lender at least) pass the savings on to you.

FHA loan through Freedom Mortgage, ALMOST had 20% down to avoid that BS that's PMI. I can't even look at my statements bc it irritates me so badly.

$100 a month for THIRTY YEARS?? I hate insurance companies.

I guess it all is for the best because we got a 3.5 rate, now it's above 4.5 and rising IIRC. Refinancing would save us like 50 bucks a month and I'm already two years into my mortgage.

Guess it's just the price you pay when owning a house.

OP, there are going to be A LOT more things than a 14 dollar credit report, lol. Inspection was $400. Appraisal was also severak hundred. Also you're gonna have closing costs, that aint cheap either.

[MikeJaquish]

Some people should be renters for life, I believe, as they are not prepared to deal with financial market realities.
No lender "makes 82% back in interest." Their money is not free to them. Their costs of doing business in lending are additional to interest rates.
Shop APR, rather than interest rates, to learn the cost of borrowing.

The fees MUST be disclosed for transparency. They have always been around, but have not always been disclosed clearly.

Want to tilt at the windmills of making the fees go away?
Press for legislation to allow you to borrow at higher interest rates with all fees concealed.

[LifeIsGood01]

Originally Posted by Mikala43

The page I read said USDA loans have PMI, but less than traditional at .4%

They don't call it PMI , they call it an annual fee, but it's basically PMI broken into the 12 monthly payments and just cheaper than the FHA one like you said.