Posted: Tue Oct 06, 2009 10:55 am Post subject: Texas A6
Can bank lenders raise discount points to cover closing costs? I was working with one who offered 5.25 with 1 discount point, and closing costs of $4,100, well over the 3% limit on closing costs for A6 loans. He realized his mistake after I questioned him, and he raised the points to 2-1/2 but still offered the 5.25 instead of lowering the interest rate.
As far as I know, you would be able to lower your interest rate by paying the discount points. You should note that discount points represent additional money that you pay to the lender at closing which helps you in reducing your interest rate. _________________ Procrastination is the enemy of your financial sucess
Ronda Guest
Posted: Wed Oct 07, 2009 12:13 pm Post subject: You would think so ...
But ... the limit of 3% of total loan value on Texas A6 loans for closing costs bit him, and he had to recover his costs somewhere, so he raised the points from 1 to 2-1/2. lol I just wondered if it was legal for him to do that under A6 rules.
Guest
Posted: Wed Oct 07, 2009 10:43 pm Post subject:
Better contact an attorney who has expertise in Texas A6 rules and get to know whether or not it's legal for the lender to charge you higher rates.
rondapullen
