U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-25-2013, 08:41 AM
 
Location: Texas
44,252 posts, read 61,377,145 times
Reputation: 73801

Advertisements

Quote:
Originally Posted by MikeJaquish View Post
You are a doctor, right? Or, am I mistaken? It happens.....
Banks will pucker up and kiss posteriors to get doctors' business.

Not so much for the average borrower.
My wife was a banker making $45k before we met - she bought a house with none of the tomfoolery.
Of course, that was prior to the "meltdown."
Rate this post positively Reply With Quote Quick reply to this message

 
Old 12-25-2013, 08:42 AM
 
Location: Texas
44,252 posts, read 61,377,145 times
Reputation: 73801
Quote:
Originally Posted by TimtheGuy View Post
Odds are you could have received a reduction in your closing costs equal to .25% of the loan amount (i.e. $500 on a $200k loan) if you would have opted to escrow.
We didn't even talk about it until AFTER the rates were set.
So as far as they knew, we were doing an escrow account.
Both times.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-25-2013, 08:46 AM
 
Location: Texas
44,252 posts, read 61,377,145 times
Reputation: 73801
Quote:
Originally Posted by thelopez2 View Post
To say it is a rip off, is like saying interest is a rip off. It is the cost to borrow money. If you don't want to pay for interest, cost , fee, insurance, then pay all cash. In most places, you'll still have to pay a property tax, another 'rip off' based on a value controlled by others who have bought at a higher price than you.
No. It is not.
I pay interest as a fee for borrowing money. I do so gladly and do not think paying a fee to use someone else's stuff is a rip off.

That's a terrible comparison.

As a homeowner, I am obliged to pay home insurance and property taxes.
What does that have anything to do with interest or borrowing money?
I will pay it myself. That is my obligation. I am not borrowing anything to pay it.

Property taxes are not a rip off in my mind and should be studied prior to entering the market to decide if you think it's worth it.

Let's call it what it is - punitive. It's a punitive action because of some bad apples.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-25-2013, 06:35 PM
 
Location: MID ATLANTIC
8,458 posts, read 21,870,962 times
Reputation: 10034
Well, unless your loan is going to be a portfolio loan (meaning it won't be sold) where escrow are optional, you now have the pleasure of paying a LLPA (loan level price adjustment) to pay your own taxes an insurance. And, you can say you don't want the mortgage unless they waive the fee, to which their answer must be, "I am sorry, all pricing is now required to be equal to all across the board, we cannot waive the fee for you and not for others. "

Welcome to the new mortgage world, we have a new sherriff in town that's going to make sure no one gets special deals or exceptions. In the past, where we could give a one day lock extension due to an emergency, well, not going to happen. Just like where we could waive a fee to not escrow, not happening.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-26-2013, 09:55 AM
 
5,281 posts, read 13,516,630 times
Reputation: 4534
Quote:
Originally Posted by stan4 View Post
We didn't even talk about it until AFTER the rates were set.
So as far as they knew, we were doing an escrow account.
Both times.
Then odds are I would say your lender had enough 'fat' in the deal to 'eat' the .25% charge.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-26-2013, 10:26 AM
 
Location: Southern California
4,453 posts, read 6,434,671 times
Reputation: 2232
Quote:
Originally Posted by TimtheGuy View Post
Then odds are I would say your lender had enough 'fat' in the deal to 'eat' the .25% charge.
Impossible to know the term of his/her loan.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-26-2013, 12:54 PM
 
Location: MID ATLANTIC
8,458 posts, read 21,870,962 times
Reputation: 10034
Quote:
Originally Posted by TimtheGuy View Post
Then odds are I would say your lender had enough 'fat' in the deal to 'eat' the .25% charge.
Lol, that was my exact thought. I know plenty of outfits that don't offer the best possible rates, so when the STANDARDIZED LLPA for escrow waiver comes along, it's not a problem. Just like the lock that needs an additional week. They just happened to have it priced in the loan and now they are the hero.

Funny thing CFPB ain't gonna like that no more. Everyone is going to have to be the same for the same score & down payment. No one will feel special any more.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-29-2013, 03:37 AM
 
Location: Utah County
10 posts, read 24,716 times
Reputation: 20
On my rate sheets, the escrow waiver has a very small price hit, not enough to raise your interest rate. I would ask for that.
The Title company agent should instruct you at closing on when your first payment is due and who it is due to.

If you are working with a broker - your payment will initially go to the lender they matched you with. The lender might service your loan or re-sell it.
If you are working with a corresponding lender/broker - you payment might initially go to the broker, and then they will sell your loan (usually as quick as possible).
If you are working with a bank - you payments will go to them, until they decide to sell your loan. A lot of times they will hold on to your loan and service it (more $$ for them).

I see no reason for your loan officer to disengage after closing, unless they do not want repeated business. He/she will have little authority to do anything, but can lead you into the direction of people with answers.

Don't worry too much over this. Make your payments before the due date and always keep proof. When your loan (or the servicing rights) gets sold , you will receive one written notice from the old servicer and one written notice from the new servicer. By law, you will have a 60 day transition period in which you can make payments to either one.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-29-2013, 07:05 PM
 
Location: Texas
44,252 posts, read 61,377,145 times
Reputation: 73801
Quote:
Originally Posted by TimtheGuy View Post
Then odds are I would say your lender had enough 'fat' in the deal to 'eat' the .25% charge.
15 year
2.8%
$350k loan
(app. value $800k)

Practically free money.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 01-03-2014, 03:22 PM
 
Location: Coon Rapids, MN
31 posts, read 70,451 times
Reputation: 14
Escrowing vs Not escrowing are different for everyone. Some like to escrow because they dont have to set aside the extra money instead they spend it. Some others don't escrow so they can get interest off that money (some good that is doing right now)

My saying. not escrowing is awesome.. except when i have to pay my homeowners insurance bill for the year or my taxes. Anyway you look at it it is all a wash. I would reccommend someone escrowing until they get use to owing a home so they dont have to come up with the extra money.

Some of my lenders charge to not escrow and some don't. Either way you have to escrow if it is FHA. A conventional loan would require 20% down to have the option.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top