Comments on: Homebuyers: Save $1250 by asking for it http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/ Moving beyond the basics Wed, 19 Nov 2008 17:13:07 +0000 http://wordpress.org/?v=2.2.2 By: KMC http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18550 KMC Tue, 26 Feb 2008 18:38:45 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18550 @ Finance Buff - Actually, just to be clear, the origination fee is not the same thing as points. From my understanding, points allow you to buy down the interest rate. An origination fee does no such thing - it's just a fee. To your question, though, no - the interest rate is competitive. I asked for the fee to be removed at the same time I asked for a particular rate. @ Finance Buff - Actually, just to be clear, the origination fee is not the same thing as points. From my understanding, points allow you to buy down the interest rate. An origination fee does no such thing - it’s just a fee. To your question, though, no - the interest rate is competitive. I asked for the fee to be removed at the same time I asked for a particular rate.

]]> By: The Finance Buff http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18530 The Finance Buff Tue, 26 Feb 2008 15:23:47 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18530 It's great you got the origination fee (aka points) removed. Did you ask for a revised GFE? Make sure they didn't raise your interest rate because of that. Is the interest rate competitive to begin with? It’s great you got the origination fee (aka points) removed. Did you ask for a revised GFE? Make sure they didn’t raise your interest rate because of that. Is the interest rate competitive to begin with?

]]> By: KMC http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18388 KMC Mon, 25 Feb 2008 12:49:15 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18388 Festivus, your point about people ignoring fees because they're such a small percentage of the transaction price is exactly right. It's a great example of irrational economics. I'll keep in mind the lawyer information. The idea of having 'my lawyer' do something for me is pretty foreign to me. My question is how to find a good, reasonably-priced one. Festivus, your point about people ignoring fees because they’re such a small percentage of the transaction price is exactly right. It’s a great example of irrational economics.
I’ll keep in mind the lawyer information. The idea of having ‘my lawyer’ do something for me is pretty foreign to me. My question is how to find a good, reasonably-priced one.

]]> By: Festivus http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18315 Festivus Sun, 24 Feb 2008 09:21:59 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-18315 This is a great post, the fees mortgage lenders charge can be absurd but not enough people complain because compared to the huge size of the mortgage it doesn't look like much. But they amount to thousands of dollars that you pay NOW that you can save part of. I haven't purchased a home yet but always read up on the process so I can save money wherever possible when I do buy. I will make sure to negotiate on every single fee charged and shop around. One of the most useful relationships you can have is a relationship with a decent lawyer. If you have one in your family or friends that you can retain to help you on things that is great, but you can also find good lawyers for reasonable rates on your own. Most lawyers aren't the type that make several hundred thousand or millions per year. I come from a middle-class family and my dad had a lawyer he once needed on something over a decade ago and since then we've used him for tons of things. I've noticed that just having your lawyer call on your behalf for certain things can be a huge help. True story, I was once charged for a Dell computer that I ordered but never received. Dell had even sent me automated emails saying the computer's delivery was delayed over and over again, but for some reason they charged me for it and told me I received it. I argued with them for hours and even sent them all the emails I got from them, it didn't change anything. My father suggested we call this lawyer and ask him to call Dell, we did so, he told them to contact him regarding this from now on, but instead a manager at Dell took the charge off right then and there. The lawyer didn't even charge us since it was just a short phone call. But if he did charge it would've only been around $100 (he's not an expensive lawyer), so $100 to save me from a $2500 erroneous charge wouldn't have been a bad deal. This is a great post, the fees mortgage lenders charge can be absurd but not enough people complain because compared to the huge size of the mortgage it doesn’t look like much. But they amount to thousands of dollars that you pay NOW that you can save part of. I haven’t purchased a home yet but always read up on the process so I can save money wherever possible when I do buy. I will make sure to negotiate on every single fee charged and shop around. One of the most useful relationships you can have is a relationship with a decent lawyer. If you have one in your family or friends that you can retain to help you on things that is great, but you can also find good lawyers for reasonable rates on your own. Most lawyers aren’t the type that make several hundred thousand or millions per year. I come from a middle-class family and my dad had a lawyer he once needed on something over a decade ago and since then we’ve used him for tons of things. I’ve noticed that just having your lawyer call on your behalf for certain things can be a huge help.

True story, I was once charged for a Dell computer that I ordered but never received. Dell had even sent me automated emails saying the computer’s delivery was delayed over and over again, but for some reason they charged me for it and told me I received it. I argued with them for hours and even sent them all the emails I got from them, it didn’t change anything. My father suggested we call this lawyer and ask him to call Dell, we did so, he told them to contact him regarding this from now on, but instead a manager at Dell took the charge off right then and there. The lawyer didn’t even charge us since it was just a short phone call. But if he did charge it would’ve only been around $100 (he’s not an expensive lawyer), so $100 to save me from a $2500 erroneous charge wouldn’t have been a bad deal.

]]> By: Tom http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-17673 Tom Mon, 18 Feb 2008 21:39:34 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-17673 I read your post about getting the origination fee removed. Nice move. I used to be a lender and the 1% origination fee is how we got paid. That fee is the income the brokerage company uses to keep the doors open so I was surprised when your broker agreed to remove it. I would bet they made up for it by the yield spread premium but don't know for sure. They too have to pay for the lights, telephone, taxes, etc. I am in no way condoning excess fees so please don't read this post that way. I read your post about getting the origination fee removed. Nice move. I used to be a lender and the 1% origination fee is how we got paid. That fee is the income the brokerage company uses to keep the doors open so I was surprised when your broker agreed to remove it.

I would bet they made up for it by the yield spread premium but don’t know for sure. They too have to pay for the lights, telephone, taxes, etc. I am in no way condoning excess fees so please don’t read this post that way.

]]> By: Patrick http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-17648 Patrick Mon, 18 Feb 2008 16:01:14 +0000 http://advancedpersonalfinance.com/homebuyers-save-1250-by-asking-for-it/#comment-17648 Awesome! That's a very nice amount of money to save just by asking for it to be removed. Most people don't even think about getting those crazy add-on fees removed. Great job! :) Awesome! That’s a very nice amount of money to save just by asking for it to be removed. Most people don’t even think about getting those crazy add-on fees removed. Great job! :)

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