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Flyer88 Flyer88 is offline
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Join Date: Oct 2004
Location: Dayton, Ohio
Posts: 765
Phil,
If they aren't smart enough to figure out how to do it look for another lender. It is much easier dor the lender to do this on a $300K loan than it is on a $80K loan as closing costs are fixed for the most part (with the exception of title insurance). On a $300K loan they would need about .875 of "premium" or "over par" pricing to cover the closing costs - that equates to about 1/4 in rate, but on an $80K loan they would need over 3 points of "over par" pricing which would probably send your rate up near a full 1% above the going rate. I run a mortgage company for a living and this option makes good sense for a lot of situations.
Bill
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Bill

87 911 Targa
06 Toyota Sequoia
Old 12-13-2008, 04:44 AM
  Pelican Parts Catalog | Tech Articles | Promos & Specials    Reply With Quote #12 (permalink)