Posted on: 25th Feb, 2011 12:44 am
We have 20% downpayment and we don't want to have an escrow account establish. We like to take care of things ourself. Our lender is telling us that to waive this, they are charging us .25%.
This is ridiculous. I understand the risk factor, but knowing that we put 20% downpayment and our credit history and the fact that you agree to loan us the money is not enough for you to not charge the fee? But the other part is, we will do the work of writing the checks and the paying these vendors ... meaning you the lender don't have to do it...is less work for the lender.
So why must we pay this fee? And how do we go about getting it waive or reduce? Your help and advice is much appreciated.
This is ridiculous. I understand the risk factor, but knowing that we put 20% downpayment and our credit history and the fact that you agree to loan us the money is not enough for you to not charge the fee? But the other part is, we will do the work of writing the checks and the paying these vendors ... meaning you the lender don't have to do it...is less work for the lender.
So why must we pay this fee? And how do we go about getting it waive or reduce? Your help and advice is much appreciated.
No helping here but I can try and explain
The risk is that is you do NOT pay it the state could put a tax lien on your home which would be in a higher lien position than the mortgage. Yes this is a standard hit to fee/with every bank.
It isn't an adjustment to the rate but rather a cost of 1/4% of the loan amount charge....
The risk is that is you do NOT pay it the state could put a tax lien on your home which would be in a higher lien position than the mortgage. Yes this is a standard hit to fee/with every bank.
It isn't an adjustment to the rate but rather a cost of 1/4% of the loan amount charge....