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Old 08-17-2010, 01:53 PM
 
26 posts, read 46,083 times
Reputation: 21

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Got the actual GFE today. Everything looks as expected, I just don't get one part of the issue.
My Initial Loan amount is $190k @ 4.375% 30 years(There's about $189.5k left on the initial mortgage)

For the 4.375% rate I am receiving $2101.40 Lender Credit. Which will make the cost of the refi -$48 + Escrow

Other details of the GFE

Closing Costs:
Adjusted Origination Charges: -$1431.40
Your Charges for All Other Settlement Services: $2582.83
Total Estimated Settlement Charges: $1151.43

And of the Total Estimated Settlement Charges $1200 is for Inital Escrow, Daily Interest, and Home Insurance, so I thought that this refinance had a -$48 total cost.

On the Payment Schedule Page I get the following:
APR: 4.426%
Finance Charge: $153,020.22
Amount Financed: $188,490.18 <--- I don't understand this number
Total Payments: 360
Payment Amount: $948.64
Starting 11/01/2010
Where is the ~$1500 going? (diff between $190k and the amount financed)

Last edited by Flowler; 08-17-2010 at 01:57 PM.. Reason: more accurate title
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Old 08-18-2010, 10:41 AM
 
28,460 posts, read 80,759,131 times
Reputation: 18656
Default What you say and what is copied from GFE do not match...

Generally speaking a "no cost" refi means that loan costs are wrapped into the loan. The most common way to do this is essentially by borrowing more than you owe, which is commonly referred to as " cash out refi"

The numbers you state and the have copied over from GFE suggest that your current loan balance is $188490.18, and that is all you will borrowing. It is very easy for you to think that is $190k, but it is not accurate...

Where are getting the 2101.40 number from? That is not on the GFE at all. The lender is crediting you 1431.40 probably because they are "reversing the points" to give you the loan at 4.375 instead of 4.00 -- still an outstanding value for 30 years...

The way that GFE reads you should be bringing a check for $1151.43 to closing. Together with the other items this is not a "no cost" refi...

You should be asking for clarification from your loan officer. It is entirely possible that I screwed up something or you did not copy something correctly or there is mismatch between what you want to accomplish and who ever prepared the GFE...

Quote:
Originally Posted by Flowler View Post
Got the actual GFE today. Everything looks as expected, I just don't get one part of the issue.
My Initial Loan amount is $190k @ 4.375% 30 years(There's about $189.5k left on the initial mortgage)

For the 4.375% rate I am receiving $2101.40 Lender Credit. Which will make the cost of the refi -$48 + Escrow

Other details of the GFE

Closing Costs:
Adjusted Origination Charges: -$1431.40
Your Charges for All Other Settlement Services: $2582.83
Total Estimated Settlement Charges: $1151.43

And of the Total Estimated Settlement Charges $1200 is for Inital Escrow, Daily Interest, and Home Insurance, so I thought that this refinance had a -$48 total cost.

On the Payment Schedule Page I get the following:
APR: 4.426%
Finance Charge: $153,020.22
Amount Financed: $188,490.18 <--- I don't understand this number
Total Payments: 360
Payment Amount: $948.64
Starting 11/01/2010
Where is the ~$1500 going? (diff between $190k and the amount financed)
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Old 08-21-2010, 03:50 PM
 
Location: MID ATLANTIC
8,421 posts, read 21,674,940 times
Reputation: 9940
Quote:
Originally Posted by Flowler View Post
Got the actual GFE today. Everything looks as expected, I just don't get one part of the issue.


On the Payment Schedule Page I get the following:
APR: 4.426%
Finance Charge: $153,020.22
Amount Financed: $188,490.18 <--- I don't understand this number
Total Payments: 360
Payment Amount: $948.64
Starting 11/01/2010
Where is the ~$1500 going? (diff between $190k and the amount financed)
It sounds like you are reading off the Truth in Lending here, not the Good Faith Estimate.

The quick answer on the Amount Financed, is this: Let's say I am going to loan you $100, but I am going to charge you $2. I am only going to give you $98. The Amount Financed on the TIL is the net check/wire the lender sends to the settlement table.

Chad's right, you should be receiving step by step translations on each of these forms. Change lenders if s/he is doing no more than "sign here." Chances are, this is the largest investment (and debt) you have, and should be treated as such.
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