owner occupied

[Daddys///M3]

Originally Posted by renriq02

Your information applies to regular mortgage loans NOT FHA.

If I wanted to give my borrower a free loan.....no fees...no YSP...no attorney fees....no escrows...no appraisal...and the rate is at 6%

The APR will still be 6.506%. (200,000 loan amount)

The ONLY 2 things I included in the APR is the monthly MIP...and the upfront MIP.

I have seen MANY FHA lenders do it your way..and it's wrong!

It's downright DECEIVING!

Edit* It's also against Federal Law TILA

For the record, I was not giving the OP any actual numbers, just random ones so he would know the difference between the note rate and APR. I appreciate that you are trying to get the correct information across, but you seem very argumentative and it also seems like you try to discredit many who try to help here (what I can tell from my short time here). So allow me to point out some of your shortcomings.

As you know, YSP is not an APR fee. Neither are the escrow reserves (with the exception of pre-paid interest) or the appraisal. Also, I ran the same scenario with just the up-front MIP and I got an APR of 6.139%. So how does the monthly MI bump that APR up by almost 40 basis points?

The fact is that I gave the OP good advice, regardless of the fact that my numbers may have been a bit skewed. I didn't think it was necessary to auto-generate an APR from Encompass or sit down and do the calculations by hand to be helpful. Please don't insinuate that I am operating illegally or purposefully deceiving my clients. There is absolutely no reason for that.

[renriq02]

hmmmmmm

I know about the 'shortcomings' lol...was just making a point.

[renriq02]

"If the APR is 6.07% then the fees are minimal, and if the APR is 6.883% then the fees are exorbitant"
"Also, I ran the same scenario with just the up-front MIP and I got an APR of 6.139%"

How are the fees 'minimal' if you know right off the bat the APR will be a MINIMUM of 6.139%?

I only became 'passionate' with this thread as I dont like someone praising themselves (5.625%), and saying someone is making MAX YSP on their loan.

I wonder if the OP saw my response before he went to go yell at his loan officer for 'ripping him off' since he/she is making 'max ysp'.

"6.5% is probably the note rate and not the APR."
That's just wrong to tell any borrower this...especially when you dont know the whole loan scenario. If I didnt know any better...and I read this response from my question...I would be strangling my loan officer right now.

Many people come on this forum asking questions....but as a professional it is my job to 'probe' to see what's going on...
I have seen many ppl who make these statements to try to get the borrower to bring their business over.

I did exaggerate on the APR but you already knew that, but I wanted you to see for yourself that there's no way the APR can be at 6.07% with a rate of 6%. OP asked about fha loans...and not super jumbo products or any other type of product. Why give someone information on a topic that is totally irrevelant to what he/she is asking?

I just hope that the loan officer didn't get strangled.....

[Daddys///M3]

Originally Posted by renriq02

"If the APR is 6.07% then the fees are minimal, and if the APR is 6.883% then the fees are exorbitant"
"Also, I ran the same scenario with just the up-front MIP and I got an APR of 6.139%"

How are the fees 'minimal' if you know right off the bat the APR will be a MINIMUM of 6.139%?

I only became 'passionate' with this thread as I dont like someone praising themselves (5.625%), and saying someone is making MAX YSP on their loan.

I wonder if the OP saw my response before he went to go yell at his loan officer for 'ripping him off' since he/she is making 'max ysp'.

"6.5% is probably the note rate and not the APR."
That's just wrong to tell any borrower this...especially when you dont know the whole loan scenario. If I didnt know any better...and I read this response from my question...I would be strangling my loan officer right now.

Many people come on this forum asking questions....but as a professional it is my job to 'probe' to see what's going on...
I have seen many ppl who make these statements to try to get the borrower to bring their business over.

I did exaggerate on the APR but you already knew that, but I wanted you to see for yourself that there's no way the APR can be at 6.07% with a rate of 6%. OP asked about fha loans...and not super jumbo products or any other type of product. Why give someone information on a topic that is totally irrevelant to what he/she is asking?

I just hope that the loan officer didn't get strangled.....

How is this, I should have been more specific and accurate when quoting APR numbers to him. I am certainly not trying to steal business. Perhaps I should not have quoted a rate to him, particularly pertaining to the deal I am working on now. I can see how you would make that assumption though. I truly did not mean to come off like that. I was just trying to convey that FHA pricing is much better than that. I priced it out myself yesterday, 6.5% is max YSP. As I said before, YSP is not an APR fee. I also was talking to him specifically about his FHA deal, no other program. Please understand, I was not trying to mislead, I was just giving a (rather poor, evidently) example of the difference of note rate and APR. I do, however, see your point in that if the rate is 6% and the APR is around 6.5% then there are no exorbitant fees. I will try to be more thorough and specific from here on out. As for you and I, I would say that we started off on the wrong foot. I hope we can move forward amicably.

[renriq02]

it's ok....by the way are you licensed in IL?

[Daddys///M3]

Originally Posted by renriq02

it's ok....by the way are you licensed in IL?

No I am not, but I know a couple of brokers out there.