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3% Capp on Texas loans?? Just A6

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dianefhouse Joined: 17 Aug 2011 Posts: 1 1.26 Dollars($)	Posted: Wed Aug 17, 2011 8:29 am    Post subject: 3% Capp on Texas loans?? Just A6 Like 0 Dislike 0 Am I caped at 3% closing cost on all texas loans or just A6. Also, what fees are included in that 3%
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Wed Aug 17, 2011 7:15 pm    Post subject: Like 0 Dislike 0 Hi dianefhouse! Welcome to forums! As far as I know, Texas capped closing costs at 3% of the amount borrowed. This is done in order to eliminate the fee incentives for loan flipping. However, if you find that the fees on your home equity loan are higher than three percent of the amount you borrowed, then in some cases that would be considered as legal. The law prohibits "necessary" fees greater than 3%, except for "interest." You will find that the lenders will want you to exclude money you paid directly to your lender. It is considered that the fees paid directly to the lender are "interest" (not "fees") regardless of what they may be called on the loan disclosures. As far as I know, the following may be included in that 3% loan cap: origination fees, attorney’s fees, appraisal fee, inspection fee, property survey, credit reports, transfer taxes and recording fees, title insurance and title examination fee. However, your lender will help you better in this matter. Feel free to ask if you've further queries. Sussane

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