Impact on Loan Officer if I immediately pay off loan (insurance, fees)
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Lenders have an agreement with the end-investor that the loan will be active for a minimum of 180 days.
While there is not a Prepayment penalty to the borrower, I agree that anyone with a shred of integrity would care about the person who answered the call on the weekend to make the deal happen for you.
Also respect to you, OP, for not being a small, little Internet Tough Guy.
Lenders are vultures. Their employees and agents are part of it. I wouldn't give a hoot for agent if it saved me $6000.
Maybe...until someone who isn't responsible about planning or finances decides they really need $ and expects that same lender move heaven and earth to get it for them.
If the loan rep gets "damaged" by you paying off the loan early, then I'd ask the loan rep if they'd be willing to accept $2500 cash for your "closing the loan" early. These are "after tax" dollars, so they carry the most weight. Figure the loan officer may counter with $3000.
$3000 is a savings to you (instead of $6000.)
This should take some of the "sting" out of the commission being refunded.
If she says "NO" to your offer, then ask her to counter offer. If it's agreeable, then do it.
If it's not agreeable, then pay off the loan, knowing you tried to do the honorable thing.
If the loan rep gets "damaged" by you paying off the loan early, then I'd ask the loan rep if they'd be willing to accept $2500 cash for your "closing the loan" early. These are "after tax" dollars, so they carry the most weight. Figure the loan officer may counter with $3000.
$3000 is a savings to you (instead of $6000.)
This should take some of the "sting" out of the commission being refunded.
If she says "NO" to your offer, then ask her to counter offer. If it's agreeable, then do it.
If it's not agreeable, then pay off the loan, knowing you tried to do the honorable thing.
Norty, that is so illegal! No LO who values their profession and license would agree to accept cash under the table from a client.
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.
OP, you may also want to look into getting a bridge loan. That's a short term loan to carry you through those few weeks before your house sells.
Norty, that is so illegal! No LO who values their profession and license would agree to accept cash under the table from a client.
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.
OP, you may also want to look into getting a bridge loan. That's a short term loan to carry you through those few weeks before your house sells.
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.
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