All Forum Posts by: Varun Parkash

If I keep submitting loan apps, my credit score takes a bad hit & I have had bad experience in first home purchase when I went to these small independent online shops for mortgage - with fees and higher rates - they were just fooling me. I did not break the 6 month lock with wells yet. Their loan origination fee and $1234 rate lock extension fee = a unknown surprise to me - other things are standard as you said. So it’s $4300 ish that are extra and unpleasant.

So here’s my little maths : 1. Wells : down $1800 already 2. Any new lender will offer 4.5 and that’s a difference of $2160 in 5 years versus a 4.25 on 245k loan versus a difference of $3000 in 5 years at 3.875 (my current locked rate) 3. Any new lender will not waive appraisal fee ($500) and loan processing fee ($1100) 4. New loan in best case scenario at 4.25 will cost me 1600$ + my $1800 (lost with Wells) = 3400$ at 4.5 rate Sticking with Wells right now means $7145 in fees and 3.875 rate but if I sell this place in 10 years or pay it off faster than these losses I am having now will change. Wells already knows these numbers well and my situation so that’s why so far they have not budged a bit in terms of giving any credits My lessons learnt is never ever to trust a lender when it comes to hidden costs & never ever in my life pay for a 6 month ahead of rate lock

I followed the fed hike news last dec 2017 and got pressurized into doing rate lock and I am ok paying the $2500 for rate lock - my issue is with the other 4500$ something fee being charged to me

Sorry my bad it is not a FHA loan, it is a conventional 30 year fixed rate loan with 20% down I did not lock rate for 7 months, for 6 I did but wasn’t told I will be charged twice for it.

Originally posted by @Sunny D.:

Originally posted by @Varun Parkash:

On further research of my old documents with Wells, i found out that

Currently, i am being charged $1300 (rate lock extension)+492 (appraisal)+3024 (loan origination charges) +1234 (more rate lock extension) = $6050 to get 3.875 rate on a small loan of 245K - which is outrageous. 

 492 appraisal is ok and ignore the rate lock extension pricing. if you closed early then you wouldnt have those charges.

so its really on loan origination fees of 3k , its a bit high.

2500 on rate lock extensions, wonder if you just got a new rate how much would the monthly payment diff would have been. if it was say 50$ pm, you paid 50 months worth of the rate diff to get lower rate

 Yes $54/month difference on 245K amount at 4.25 versus 3.875 = it will take a good 10 years to recover the $6635

Originally posted by @Sunny D.:

Originally posted by @Varun Parkash:

On further research of my old documents with Wells, i found out that

Currently, i am being charged $1300 (rate lock extension)+492 (appraisal)+3024 (loan origination charges) +1234 (more rate lock extension) = $6050 to get 3.875 rate on a small loan of 245K - which is outrageous. 

 492 appraisal is ok and ignore the rate lock extension pricing. if you closed early then you wouldnt have those charges.

so its really on loan origination fees of 3k , its a bit high.

2500 on rate lock extensions, wonder if you just got a new rate how much would the monthly payment diff would have been. if it was say 50$ pm, you paid 50 months worth of the rate diff to get lower rate

 Here's the actual breakdown:

Currently, i am being charged $1300 (rate lock)+492 (appraisal) + processing ($1095) +3024 (loan origination charges) +1234 (more rate lock extension) = $7145 to get 3.875 rate on a small loan of 245K - which is an outrageous price.

Even if i take out appraisal - it is still a $6653 price tag. 

The reason its a 6 month rate lock and extension is because it is a brand new built (started construction Jan) and bank still should not charge me 2 times for the rate lock, if they don't give me any waiver of atleast 2k, i guess i am going to cancel this deal even if i loose the $1792 (non-refundable = 1300 for initial rate lock and 492 appraisal) money with this bank. 

Originally posted by @Scott Rogers:

How tight of a deal did you make? Are you worrying about a few thousand dollars that will make you tens of thousands or more over the life of investment? If truly 4300 dollars is making that much of a impact then you made a bad investment. But I hope your deal is better then that and you just getting nervous. Dont let pennies keep you from picking up dollars.

 It's way more, here's the breakdown: Currently, i am being charged $1300 (rate lock extension)+492 (appraisal) + processing ($1095) +3024 (loan origination charges) +1234 (more rate lock extension) = $7145 to get 3.875 rate on a small loan of 245K

Originally posted by @Sunny D.:

Originally posted by @Varun Parkash:

Originally posted by @Sunny D.:

Originally posted by @Varun Parkash:

Wells Fargo it is

 i have found chase to have lowest closing costs among big banks, next boa. 

I will have to get my score 775 run by Chase to see if they can offer anything better than the mess i am in. 

 i suggest go to a branch, ask to be seen by a private client or branch manager. show them ur wells statement and ask what they can offer.

 Good idea, you mean to say - wells loan summary statement or the one where they mention their outrageous closing costs? 

On further research of my old documents with Wells, i found out that

Currently, i am being charged $1300 (rate lock extension)+492 (appraisal) + processing ($1095) +3024 (loan origination charges) +1234 (more rate lock extension) = $7145 to get 3.875 rate on a small loan of 245K - which is outrageous. 

Originally posted by @Sunny D.:

Originally posted by @Varun Parkash:

Wells Fargo it is

 i have found chase to have lowest closing costs among big banks, next boa. 

I will have to get my score 775 run by Chase to see if they can offer anything better than the mess i am in.