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finance charges

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novak Guest 0.10 Dollars($)	Posted: Tue May 30, 2006 1:42 pm    Post subject: finance charges If the loan officer says that finance charges would get deducted from the financed amount, is it means I don't have to pay them. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
inoal Guest 0.10 Dollars($)	Posted: Tue May 30, 2006 2:00 pm    Post subject: Hi Novak, I think you have to pay them all right. Lenders don’t charge fees that they don’t expect to be paid.
jameshogg Joined: 20 Dec 2005 Posts: 1514 Location: nevada 210.98 Dollars($)	Posted: Tue May 30, 2006 3:17 pm    Post subject: Hi Novak, Inoal is quite correct in saying : Quote: I think you have to pay them all right. Lenders don’t charge fees that they don’t expect to be paid. In the Truth in Lending (TIL) one information is there called "Amount Financed". It is the loan amount less prepaid finance charges, which are the charges paid at closing. For example, if the loan is $200,000 and the borrower pays 3 points, or $6,000, the amount financed is $194,000. It is created as such with the thought that you should be told that the lender wasn’t "really" advancing you $200,000 because they got $6,000 of it back from you at the outset. This piece of misinformation allows loan officers to say that the finance charges are deducted from the amount financed. And you think as if that meant that you won’t have to pay the charges. Its nothing but a way borrowers get confused about the real situation. Hope I was able to make the actual situation clearer to you. James
helping_user Joined: 31 Mar 2006 Posts: 803 Location: Hawaii 149.53 Dollars($)	Posted: Tue May 30, 2006 9:17 pm    Post subject: Re: Finance Charges Hi Novak, JamesHogg and Inoal were absolutely right. I am just adding little more information about the finance charges. Finance charge is determined as the total off all charges payable directly or indirectly by the person. The finance charge shall not include the fees and amounts obligated by the third party closing agents. The finance charges include different following types of charges which are applicable: Interest and any amount paid under discount point. Service Charge. Loan fees. Investigation fees or credit report fees. Insurance premium amount. Mortgage Broker fees if paid by the borrower. Hope this information may help you little more. Thanks
novak Guest 0.10 Dollars($)	Posted: Wed May 31, 2006 10:09 am    Post subject: Thanks all of you , it was really a eye opener for me.

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