All Forum Posts by: Christina Kinard

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Quote from @Christina Kinard:

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Quote from @Christina Kinard:

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Quote from @Christina Kinard:

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

 Hey Christina, 

Up front points? The only upfront costs you should have are the appraisal and the credit report. Anything else is always paid at closing. I have heard of a few lenders charge a holding fee, but it's not the norm. 

Did your lender provide you with a Loan Estimate? Is this a Second/vacation home loan? By Loan Discount Fee, are you referring to discount points to buy down the rate? 

Hi thank you for the reply! They aren’t up front, part of the closing costs. Yes, I have a loan estimate. When he explained them to me he said they weren’t optional buy down points and that they were required. If I wanted to buy down the rate it would be on top of these point charges. It comes to 1.75% of the loan. Yes, this is a second/vacation home loan.

 That's odd. Why are they required? Are you also paying a loan origination fee? 

No I don’t think so. I uploaded a picture!

 I have never seen a Loan Discount fee that is required. All the other fees are accurate. I would challenge the loan officer and ask why the discount fee is required. They should be able to explain in full detail. 

Is this loan through a bank or credit union? 

I will try asking that. I found an article in the news supporting what he said but was the first time I’ve heard of that. The quote is with movement mortgage. 

https://www.nahb.org/blog/2022...  

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

 Hey Christina, 

Up front points? The only upfront costs you should have are the appraisal and the credit report. Anything else is always paid at closing. I have heard of a few lenders charge a holding fee, but it's not the norm. 

Did your lender provide you with a Loan Estimate? Is this a Second/vacation home loan? By Loan Discount Fee, are you referring to discount points to buy down the rate? 

Hi thank you for the reply! They aren’t up front, part of the closing costs. Yes, I have a loan estimate. When he explained them to me he said they weren’t optional buy down points and that they were required. If I wanted to buy down the rate it would be on top of these point charges. It comes to 1.75% of the loan. Yes, this is a second/vacation home loan.

 That's odd. Why are they required? Are you also paying a loan origination fee? 

No I don’t think so. I uploaded a picture!

 I have never seen a Loan Discount fee that is required. All the other fees are accurate. I would challenge the loan officer and ask why the discount fee is required. They should be able to explain in full detail. 

Is this loan through a bank or credit union? 

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

 Hey Christina, 

Up front points? The only upfront costs you should have are the appraisal and the credit report. Anything else is always paid at closing. I have heard of a few lenders charge a holding fee, but it's not the norm. 

Did your lender provide you with a Loan Estimate? Is this a Second/vacation home loan? By Loan Discount Fee, are you referring to discount points to buy down the rate? 

Hi thank you for the reply! They aren’t up front, part of the closing costs. Yes, I have a loan estimate. When he explained them to me he said they weren’t optional buy down points and that they were required. If I wanted to buy down the rate it would be on top of these point charges. It comes to 1.75% of the loan. Yes, this is a second/vacation home loan.

 That's odd. Why are they required? Are you also paying a loan origination fee? 

No I don’t think so. I uploaded a picture!

Quote from @Erik Estrada:

Quote from @Christina Kinard:

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

 Hey Christina, 

Up front points? The only upfront costs you should have are the appraisal and the credit report. Anything else is always paid at closing. I have heard of a few lenders charge a holding fee, but it's not the norm. 

Did your lender provide you with a Loan Estimate? Is this a Second/vacation home loan? By Loan Discount Fee, are you referring to discount points to buy down the rate? 

Hi thank you for the reply! They aren’t up front, part of the closing costs. Yes, I have a loan estimate. When he explained them to me he said they weren’t optional buy down points and that they were required. If I wanted to buy down the rate it would be on top of these point charges. It comes to 1.75% of the loan. Yes, this is a second/vacation home loan.

Quote from @V.G Jason:

Quote from @Christina Kinard:

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

Actual closing costs fees or legit buy down points you didn't want?

The closing fees are totaling $8,500 or 3.5% of my loan. The “loan discount fee” is 4,800 of those closing costs. 

Hi thank you for the reply! They aren’t up front, part of the closing costs. Yes, I have a loan estimate. When he explained them to me he said they weren’t optional buy down points and that they were required. If I wanted to buy down the rate it would be on top of these point charges. It comes to 1.75% of the loan. Yes, this is a second/vacation home loan. 

Hello!

I am under contract on a vacation property (10% down) & looking to lock in with a lender. The current lender we got rates from is telling me that they require a percent of the loan up front kind of like buy down points and that its required because the mortgage companies know that people will be refinancing soon. My loan cost illustration has it listed as "Loan Discount Fee". This is about 1.75% and I am still being quoted 8.1% rate since this is second home. I am wondering if this sounds accurate or if i should look at getting another lenders quote. I am under contract so I need to figure out asap.

Appreciate any advice!!

Hi @Brett Voorhees @Donald Rogers thanks for insight. I understand that portion but lets say that I buy the land with a construction loan rather than a just a lot land loan. In this instance, I am rolling my 80k land purchase and 400k construction loan build into one loan, would I have to keep working with my realtor and pay them at the closing when my home is built and my mortgage loan is created? 

I am looking to buy land & build a STR. I would like to use a new construction loan so that both the land & build are in one loan & less of a down payment.

If I use a realtor to purchase the land, will I have to pay them a percentage of the construction loan? IE: If I spend 80k on land & get a loan to build 400k home, will I owe the realtor fee's on just the 80k land or will I owe on the construction loan. Since I would be working directly with a builder to build on my own property, I have no need for a realtor beyond purchasing the lot.

Appreciate any insight!!

I am looking to buy land & build a STR. I would like to use a new construction loan so that both the land & build are in one loan & less of a down payment.

If I use a realtor to purchase the land, will I have to pay them a percentage of the construction loan? IE: If I spend 80k on land & get a loan to build 400k home,  will I owe the realtor fee's on just the 80k land or will I owe on the construction loan. Since I would be working directly with a builder to build on my own property, I have no need for a realtor beyond purchasing the lot.

Appreciate any insight!!