| Scot Lilly 2005-06-17, 11:27 pm |
| The best way when shopping is to use the Truth In Lending Form. This is
required by all lenders and allows the consumer to compare the loans in a
like manner (APR). I would venture to say that Ditech might finance their
own loans, but these loans are packaged and resold in the secondary market.
Also, I would agree that Ditech is not showing all sides. I have personally
never dealt with them, but I assume that what you see on TV only applies to
a small sample of the population that fit their "ideal" consumer that is the
least risky. You probably can not get that advertised rate and the no
closing fees unless you have perfect credit and meet certain conditions.
Working with a local lender usually does help in the process of insuring
that the loan is tailored to your needs. Often times consumers are not
aware of all the products available and would be much better suited to be
fit into other loans besides standard 30 or 15 year conventional loans.
--
Scot Lilly
slilly@pratamortgage.com
www.pratamortgage.com
"CRWLR" <noneofyourbusiness@yahoo.com> wrote in message
news:10k9pd1n6ltso5b@corp.supernews.com...
quote:
>
> <reply@this_newsgroup.com> wrote in message
> news:4zK0d.111807$0o5.109328@bignews1.bellsouth.net...
>
> I assume that nobody actually qualifies for the loans they have on TV, but
> they sell two different things, and you have to be sure which of them you
> are looking at.
>
> I can sell you a $395 colosing cost loan too, and I can sell you a 4.75%
> <or whatever>, but you will NEVER see them selling 4.75 for only 395.
>
> A No Closing Cost Loan has a higher interest rate than a losn where you
> pay the costs, and a 4.75 has no only closing costs but a Loan Origination
> Fee. You have to be careful to not mix apples and oranges when yu are
> talking to DiTech.
>
> The bottom line is, I structure my loans the same way as they do, and I
> can beat them more often than not. The only way to know for sure is to get
> a Mortgage Loan Disclosure Statement from them, and from other lenders,
> and compare the APR. The APR has virtually no value, EXCEPT it tells you
> in summary form how much the loan is going to cost you. If you had a MLDS
> from two lenders, both for the same loan amount and interest rate on the
> note, the APR is the number that tells you the relative cost of the loan,
> the lower APR is the better. There are literally a dozen different fees
> that are assoicated with loan generation, sometimes they are the same fee
> with different names, sometimes they are different fees with the same
> name. Some fees are rolled into one on one form while on another set of
> forms the fees are broken out in excrutiating detail. You get a headache
> trying to figure them all out, but you can simply to the the APR and get
> the loan that has the lowest APR, again assuming the loan amount and
> interest rate are the same.
>
> The reason the loan amount is important is that if you took a loan for
> 250,000 or you took a loan for 300,000, the associated fees (except the
> Loan Origination Fee) would be essentially identical, let's say $3000.
> Well, the $3000 figure is larger percentagewise for the 250k loan than the
> 300k loan, therefore the APR would be greater for the smaller loan, get
> it? The Loan Origination Fee is calculated in Points, where 1 point is 1%
> of the loan amount. 1 point on a 250k loan is 2500, the same point on the
> 300k loan is 3000. This difference tends to keep the APR on an even keel
> because the APR includes the points. The 250k loan has a total of $5500
> in fees (the 3000 plus the point - 2500), wheras the 3000k loan has $6000
> in fees (the 3000 plus the point - 3000).
>
> You can be sure that DiTech has the same fees, but if you only pay $395 in
> Closing Costs, they are getting the fees in the form of a rebate from the
> lender, and you are getting a higher interest rate as a result. If you
> plan on remaining in the property for longer than about 5 years, you do
> not want the Low Closing Cost loan, because the higher rate will cost you
> thousands of dollars over the term of the loan.
>
>
>
|