Could you clarify the costs on your How To Read Rate Sheets article?

Author: Rob K. Blake | Date: February 1, 2008 | Filed In: Mortgage Answers

Here’s the whole question…then I’ll answer it.

“I just reread your article “How to Read Mortgage Rate Sheets”. In your example, you give 2 costs for obtaining the same $200,000 mortgage.

The right way = $2,328.00

The wrong way(YSP) = $4,996.00

My question:
Is $2,328.00 the entire total cost of the loan? Does this include closing costs and everything else associated with the loan?

In other words, what would be the COMPLETE and TOTAL cost for the loan? Is it the $2,328.00?

Thanks again for what you do…“

The article explains how loan officers quote rates to make them money at your expense examining the differences in income to the mortgage company and ultimately the loan officer salesman at different rates.

Given that understanding, the example above is only the income to the originating mortgage company…not the total set of closing costs.

The total set of closing costs above the originating company income is set out in the document called the Good Faith Estimate and since most of those costs are third party costs one can get an invoice for to determine legitimacy, the real ripoff comes in how well (or more accurately, poorly) you negotiate the income (ie. rate) with the originating mortgage company.

Our mortgage shopping system centers on this important fact…and everyone shopping for a mortgage should get a copy to insure they know the best way to shop for and negotiate a mortgage.

To learn more click the link… The Mortgage Advantage System

Great question!

Good Luck!

Author: Rob K. Blake