The cost of borrowing and comprison between BOA and the mortgage broker, you find a better one?

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My broker wants to charge the following loan amout of about $ 242 K. and the current rates cheaper by about 6% 30 years fixed fee tulu.hindamise 300menetlustasu issues USD 350 million for security 700titile $ closing cost $ 1,100 paid to the broker 2450YSP 1.5%, which would be $ 3,663 kuumakse 1805.Maakler said, is the PMI, as we put 5%. Now Bank of America wants to give me $ 250K loan as stated income, 30 years together, 10% less than the loan rate andwhich 225K $ 5.500% 3.552% discount points, but I have to pay a tax of $ 7,992 but no PMI put 10% down or closing of all loans teenustasusid.Kui ├╝ksnesnr compare to find the best broker BOA or THR? Above all, when I lose more money? BOA is PMI, which means I’m saving more than $ 100 a month for several years right? I think that despite the $ 7,992 discount points, I still think the BOA deal is not better than any commissions on loans and save thousands of PMI.?

2 Comments
  1. Reply
    CHIEFONE
    May 16, 2011 at 5:58 am

    I would go with BAC, pay the points and avoid paying P.M.I. P.M.I. is throwing money down the drain, as a buyer you get absolutely no benefit from paying it. The points are deductible from your taxes spread over the life of the loan. Take the $ 100. you would be paying for P.M.I. and apply it toward the principal every month. Two other reasons to go the BAC way is the fact that your loan amount will be 5% less because of the 10% down payment, your interest rate will be lower and you won’t have to pay any lenders fees.

    Good luck whichever way you go.

  2. Reply
    Expert Realtor
    May 16, 2011 at 6:08 am

    BOA has a better deal, but for different reasons than you stated.

    The discount fee isn’t what I consider a “junk fee” b/c you are directly getting a lower interest rate that is permanent and that will save you money over time…so it’s always money well spent.

    You may not be paying out-of-pocket PMI, but there will be PMI on the loan, even if it’s lender paid, which means they have built it into the rate…same for closing fees, etc. Those fees ARE getting charged, they are just not out of pocket….which isn’t the same thing.

    Also, YSP is the MOST negotiable part of the deal.

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