Best place to get a mortgage? I went thru a broker and paid WAY too much in fees. Better 2 go with bank direct
Wondering if you get best rate and lowest fees by going directly with say Countrywide or Bank of America. Is it even possible to find a company that offers lowest possible rate and almost no fees? I purchased a condo in San Diego a few years ago and paid almost $5000 in fees that werent disclosed until very end of escrow. Because of this I do not trust mortgage brokers.
You should have been given a Good Faith Estimate by your mortgage broker prior to closing and immediately after you signed the application.
You should check your last closing statement and see what the $5000 was for. Most of that I am sure went toward closing clost. You had to pay for taxes,insurance, title insurance, and escrow fees. Now what ever was left over I am sure were points and fees paid to the broker you used.
Your taxes an title insurance is based on the price you paid for your condo.
Now since you paid these fees in what we called up front you should have been able to deduct these fees and points on your federal income tax. You also get to deduct the interest rate.
I have a question for you, do you think that even if you get a no fee, no points loan that this loan is really free? Not by a long shot. The way the lenders such as Country Wide and Bank Of America and even mortgage brokers do this is simply by raising the interest rate. These institutions have overhead to pay, salaries, rent or mortgages.
With a no fee no points mortgage yoy may deduct on the interest rate.
The real question is how will this affect you. What is best for you in your current financial condition?
Do you want to pay the additional interest rate or do you want to pay the points and fees up front and be able to deduct them off your income tax yearly.
Your best bet is to sit down with your tax advisor, go over the scenerios available to you. After that you may make an intelligent decision as to what is better for you, both in the long run and short term.
Once you have all the information you can then make an intelligent decision.
The best place for you to get a mortgage is based on how much intelligence you have about the process and how the process help you.
So make sure you get a Good Faith Estimate after signing your loan application. When escrow opens call escrow and get another Good Faith Estimate. These are the things you need to stay on top of. These people work for you not the reverse.
Points and fees to your broker are negotiable. Taxes, Insurance, Title fees and escrow fees are normally set, so make sure you are looking at where the money is going.
I hope this has been of some use to you, good luck.
“FIGHT ON”
Bank of America who can make a Decision!