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Pftex is a loan officer and is letting OP know what happens to an LO's pay when someone pays off their loan earlier than 6 months. Does anyone here like to work for free?? It's indeed a low blow when someone pays off early and your pay gets raked back; it's an even lower blow to the loan officer when someone says they will make their six payments and then they go ahead and pay it off KNOWING that person will not see a dime for their work. That's flat out legal stealing, IMO and, well, you know what they say about Karma.
People on this forum routinely quote $3000 to $6000 or more in closing costs to take out a mortgage (points and origination fees - talk about legal stealing). If a borrower pays off the mortgage immediately after taking out the loan, does the loan company refund any of that money? Of course not. They keep it.
That loan officer didn't do anybody any favors by processing the loan. The borrower qualified for it.
And if he's working on commission he risks a charge back occasionally just like any other commissioned salesman.
Don't throw good money (6 months interest) after bad (closing costs). Pay the loan off as soon as you can.
I'm always amused by people who take the moral high ground, until the money is coming out of their pocket. Then it's suddenly a different story.
Not that you'd understand, but I've given up plenty of commission $$ to clients. That's tens of thousands of dollars "out of my pocket', but it's never changed my viewpoint.
Not that you'd understand, but I've given up plenty of commission $$ to clients. That's tens of thousands of dollars "out of my pocket', but it's never changed my viewpoint.
For some people, "integrity" is only found in the dictionary. It is there, right between "imbecile" and "jackass."
We are already in the loan. The bridge loan was totally unavailable to us and so was refi on the old house. We did a ton of research before we took the 30 year conventional loan at 3% interest that we are now in. Last time we sold a lot of stock and our medicare premiums doubled for 2 years and we had to pay income tax on our gains even though it went right into a home purchase. So this time we thought this was the best option.
We will talk to our LO and honor the commitment. Now, tho, wondering if we make a big upfront lump payment and keep the loan alive until 6 months expires what the impact of that on our LO.
It will not, it's a payoff penalty. Of course check in with your LO.
To the Sad Little Man talking about Integrity: I just spent the better part of an hour talking with an older couple a little south of my office. We talked about the best ways to keep their insurance policy effective, and decided to hold off on closing indefinitely. I had "done all the work" but chose not to allow anything that might jeopardize their coverage. I have about 30 similar clients across OR and WA on which I am making similar phone calls. There has not been a formal FEMA Disaster Declaration yet, so I could proceed with these closings. I'm deciding to tap the brakes, though. Literally about $90k in income I'm pausing or preventing. GFY.
It will not, it's a payoff penalty. Of course check in with your LO.
To the Sad Little Man talking about Integrity: I just spent the better part of an hour talking with an older couple a little south of my office. We talked about the best ways to keep their insurance policy effective, and decided to hold off on closing indefinitely. I had "done all the work" but chose not to allow anything that might jeopardize their coverage. I have about 30 similar clients across OR and WA on which I am making similar phone calls. There has not been a formal FEMA Disaster Declaration yet, so I could proceed with these closings. I'm deciding to tap the brakes, though. Literally about $90k in income I'm pausing or preventing. GFY.
My thoughts and prayers are with you and all the people on the West Coast having to deal with these terrible fires. I'm originally from CA but now worry about hurricanes rather than fires. Stay safe.
People on this forum routinely quote $3000 to $6000 or more in closing costs to take out a mortgage (points and origination fees - talk about legal stealing). If a borrower pays off the mortgage immediately after taking out the loan, does the loan company refund any of that money? Of course not. They keep it.
That loan officer didn't do anybody any favors by processing the loan. The borrower qualified for it.
And if he's working on commission he risks a charge back occasionally just like any other commissioned salesman.
Don't throw good money (6 months interest) after bad (closing costs). Pay the loan off as soon as you can.
Do you even know what fees make up closing costs? Do you know that the fees charged by appraisers, title companies, attorneys, insurance companies and state and county entities are also included in the closing cost figure and it's the lender who's responsible for disclosing everyone else's fees along with their own? If you have ever seen a loan estimate, you would clearly see in Section A exactly how much of those closing costs dollars are going to the lender.
Your "advice" to posters regarding mortgages is so off base and wrong. I hope no one takes you seriously.
OP, call the lender (after 1st payment) and request a recast- pay down all but 50K, but do so by co-ordinating with the lender (before sending in all that money). Once recast, the remaining interest will be negligible. (I am happy to walk you through this, just direct message me via Citydata).
Kudos to you for standing by your word. I promise by doing the above you will minimize your cost and protect the lender - you know, have your cake and eat it too. What comes around goes around - that has never led me wrong.
you could simply ask the mortgage loan officer what they meant by the comment. Ask them what happens if you DO pay it off before 6 months.
after that, Pfhtex is a loan officer, so I assume they know what they're talking about. Maybe that's what your LO was referring to, maybe not though.
all these other scenarios, ask YOUR loan officer. They'll be happy to explain how to minimize the "harm" to both of you.
Agree with this. Just ask the guy. That might help formulate a plan that solves both problems.
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