anyone care to look at this? I see there are negative discount points. What would this mean? Estimated Funding Date: 10/04/2002 First Payment Date: 12/01/2002 Loan Amount: $142,500 Loan Type: Conforming 30 Year Fixed Estimated Property Value: $150,000 Interest Rate: 7.250% Discount Points: -3.000% Rate Lock Status: Not Locked Lock Expiration Date: Not Locked Principal and Interest Payment: $972.10
Negative points are points that your lender pays you to pay your closing cost; i.e. title fees, appraisal, etc. In return for negative points you'll pay a higher interest rate. In this case case you'd get approx $4200 back. BUT: Normally you don't actually get cash back after your closing costs have been paid. Your actual closing cost should be much less than 4200, meaning you'll not reap the benfit from it. Ask your lender for an offer with less negative origination points and in return a better rate. I'd think that about 1.5 negative points is all you need to pay for closing. Mike
Negative discount normally refers to yield spread premium. This is the amount the bank will pay your mortgage broker for selling you a 7.25% rate. This is not money from your pocket upfront, however, you are paying this money for the next 30 years plus interest. There is nothing wrong with a broker making money, however, you know if they earned 3 points or not. I would ask for some other options concerning the rate and points, 7.25 is a little high right now for a 30 year conventional loan. I am a mortgage banker myself and the average rate that I have been seeing these days on a 30 yr loan is about 6.25 - 6.5%. Are they charging you any origination fee or junk fees( processing fee, application fee, administrative fee, etc)?
Hi all. I am only putting 5 percent down and that is about ALL I have to put down. Let me get the fees that I was shown. I will get back to you in just a second.
Considering that the lender maybe paying your closings cost, then these negative points are most likely being applied to your costs. Regardless, you should have a good faith estimate from them breaking down your closing costs.
6.000% with 0 points would be a better deal...WOULDN'T IT??? Somehow it looks like your going to get the SHORT END OF THE STICK...
Hi there, The loan officer just emailed me the rate info today because I was getting antsy. I am still looking for the dang email. I swear AOL has eaten it!!!
I THOUGHT that everything was going good. They as of Sept 1st decided I am no longer in a rural area. 20,081 population. Limit is 20,000
