Entries from Searchlight Crusade tagged with 'closing costs'

Why It May Be Costly to Reject Paying Points

I hear it and read it all the time - advice that says to pre-emptively reject the possibility of paying points. People that talk to me about loan rates that tell me they will not consider any loan that...

Lowballing Mortgage Quotes Versus "Junk Fees"

One of the things that most mortgage and real estate consumers get mixed up on is the distinction between low-balling and junk fees. Junk fees are when they add fees that really aren't necessary to what you're paying. Low-balling is...

Don't Roll Mortgage Refinance Costs Into Your Balance If You Wouldn't Pay Them Cash

One thing that is very common in the mortgage industry is masking loan costs by rolling them into your loan balance. People are less sensitive to being asked to roll this money into their loan balance than they are about...

What Are Points and How Do They Work?

That was a question I got. One point, either discount or origination, is one percent of the final loan amount. After all of the loan amounts and fees and what have you are added, for a loan with one point,...

Second Trust Deeds: Home Equity Loans and Home Equity Lines of Credit

A Home Equity Loan, or HEL (pronounced "heel") is a one time loan, much like a car loan. You get the money all at once, pay it back so many dollars per month, and when it's paid, it's over....

Cash to Close - A Basic Primer

Cash to close has always been an underwriting standard, but more people are running into it as a reason why they cannot buy that property, why their buyers cannot perform, and why they can't get that refinance approved. With...

Zero Interest Credit Cards versus Home Equity Line Of Credit

Once upon a time, I received an email about the virtues of zero interest credit cards as opposed to Home Equity Lines of Credit. I've organized both the email and my response in order to facilitate understanding: You raise a...

You've Got a Great Offer, But Can The Buyer Consummate It? (Cash to Close and Appraised Value)

As a seller, a purchase offer is not money in your pocket. As a matter of fact, accepting the wrong purchase offer can cost you tens of thousands of dollars if the buyers can't consummate. I recently dealt with...

Read The Full Note Before Signing

Just got a search "how can I tell if my prepayment penalty applies to selling my home" Read The Full Note. You need to do this before you sign it. I know that many people are just thinking "Sign this...

What Are Recurring and Nonrecurring Closing Costs?

Many people are uncertain as to what closing costs are. Basically, they relate to the costs of doing the transaction. There are people who work on getting your loan through the process of approval and funding, and those people have...

The Three Day Right of Rescission

One reason to check your referral logs every day: Sometimes you can find great material for an article. I got one about the three day right of rescission. The three day right of rescission is a feature (or bug, depending...

Questions You Should Ask Prospective Loan Providers

Mortgage - Questions you must ask every provider about every loan when you are shopping. Permission is hereby granted to print this out and use it for non-commercial purposes so long as no alterations are made and copyright is preserved....

Why You Should Ignore APR

One of the things you get with every mortgage loan quote is an APR, or Annual Percentage Rate. There is even its own special form, the federal Truth-In-Lending (TILA) form, required at application for every loan. This was mandated by...

Keeping Pre-payment Penalties Legal

I got a search for "which states allow prepayment penalties". I'm not aware of any that don't. If you are, I'd like to know. Any such states should immediately be renamed "Denial". I really hate prepayment penalties, for a large...

What Does Escrow Do?

This is a question that gets asked a lot. Escrow is nothing more or less than a neutral third party that stands in the middle of a real estate transaction and makes certain all of the i's are dotted and...

Mortgage Closing Costs: What is Real and What is Junk?

The easy, general rule is that legitimate expenses all have easily understood explanations in plain english, they are all for specific services, and if they are performed by third parties, there are associated invoices or receipts that you can see....

Mortgage Rate, Points, and Closing Costs

Everybody knows that you want the lowest rate, and everybody knows that you don't want to pay any money you don't have to, in order to get it. However, not everybody makes the connection that it is always a tradeoff...

Games Lenders Play, Part VII - Selling Mortgage Accelerator Programs

I thought I'd share this with you as an example of the sort of mind set to beware. This is a real email I received, with identifying information redacted. I found you through the DELETED web site and I thought...

Pre-Payment Penalties and Second Trust Deeds

This was originally from February 2007. The situation as to what loans are available has changed quite a bit since then, but the underlying advice is and will remain sound. Shortly after the original article, things started downhill for lenders...

What to Beware in Third Party Services

RESPA (Real Estate Settlement Procedures Act) prohibits an agent from requiring you to have other services performed by specified outside companies, or by a particular associated company either. RESPA also prohibits an agent from accepting payment (kickbacks) from third party...