Do these fees make sense?
Question: I am looking to refinance a property (co-op, NYC) that I own to take out equity and pay off a car loan. Here are the details?
bought at $102K, now worth $175K.
I owe $60K
I want to take out $20K to pay off the car
I am NOT living there and receive $2K/month rent (I know I am making a killing)
so basically, I found someone give me the loan, but their fees are OUTRAGOUS
They want me to pay $650 out of my pocket, and roll the rest into the loan.
They want $2071(processing fee) and $1522(fee for investment property). Basically they 5.3% in fees. This and the rate that they give me for a 10 year loan is only 6.75%
Does this seem ridiculous to anyone else?
Answer: unfortunately you are dealing with an investment property – so yes, these fees could be legit. The only way to know for sure is to shop the loan to different lenders. Please note that you do NOT need to let all lenders check your credit report nor do you have to pay a fee to get price qoutes. If you shop the correct way you can save lots of money. Good luck w/ your new loan! at risk of turning this advice into an ad. for a product, you may want to check out this book Meet Mister Mortgage, it guarantees to save you money on your next loan and will teach you alot about the loan process. Yes, that does seem ridiculous…I am assuming this is not through a major bank..So I have to ask if you have bad credit..If you do, bite the bullet and take it, ’cause ridiculous is all you’re likely to be able to get..If your credit is good, laugh in his face and move on..
Related Posts
Filed under: Bad Credit
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.