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3k help from the Lender by changing 4.6% to 4.8% APR

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jd77v17 Guest	Posted: Tue Jul 12, 2011 7:15 am    Post subject: 3k help from the Lender by changing 4.6% to 4.8% APR Like 0 Dislike 0 We were originally going to get a 3K CDA Loan/Grand, this was never filed properly so we are going to miss out on it. The Mortgage Agent said he could probably get us 3K back something or another at closing to use instead of the CDA if we changed the 4.6% Locked to 4.8% APR locked. To us it sounds like a pretty good deal. It's almost like getting a 3K loan from Wells Fargo with a ok rate. How much will a 0.2% increase effect me over my 30 year fixed mortgage? Is it work the change? How much will it have cost me in 30 years on a $147k home? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Tue Jul 12, 2011 9:54 am    Post subject: Like 0 Dislike 0 Sorry...this is all alien to me...can you further explain "3K CDA Loan/Grand" and what your locked 4.6% vis a vis the 4.8% APR locked is all about? "Getting a 3K loan from Wells Fargo with a ok rate" is something else I am having trouble understanding. Before you get 15 comments from others advising you of what to do in this extremely confusing situation, I believe it best that you elaborate on what it is that's taking place. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Tue Jul 12, 2011 10:42 am    Post subject: Money Like 0 Dislike 0 Mortgage payments are not calculated with APR rates. Mortgage payments are calculated according to the interest rate. What was the first interest rate? What will the new interest rate be? It is possible to raise your rate and get money back from a lender towards closing costs. In this case it sounds like you are getting $3,000 toward closing costs by raising the rate. I would think a Mortgage Agent who is knowledgable enough to do this, can also probably answer your questions. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278
Guest	Posted: Wed Jul 13, 2011 11:55 am    Post subject: Like 0 Dislike 0 Since you missed out on the Community Dev grant/loan, the LO is taking about increasing your INTEREST rate so that there will be additional YSP (Block 2 of your GFE) to offset the $3,000 you were to get from CDA. The APR will increase with the interest rate change. Should you elect to go this route, you will receive revised TIL and GFE forms -- just calculate the differance between the new and old P&I amount and multiply by the number of months in the loan term. The result will not be discounted for the time value of money,

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