05-10-2013 02:20 PM - edited 05-10-2013 08:14 PM
Took a look at our most recent GFE last night and I saw the following:
Origination Charges - $9520
Lender Credit given for 3.375% rate - ($8100)
Adjusted Origination Charges - $1420.
Our builder gives us 3% towards closing costs if we use their lender. Is our 3% credit being masked by us taking a higher rate? To me, the lender isn't "giving" us anything as we are taking a higher rate. So shouldn't we get 3% on top of this?
05-10-2013 06:23 PM
05-10-2013 08:15 PM
Thanks, Booner. I edited the OP in hopes to get my point across a bit better. I don't want to pay an arm and a leg at closing when I shouldn't have to.
05-11-2013 07:05 AM
You are right in that the lender credit is created by increasing your interest rate.
That is how all lender credits work.
If you are getting a fixed rate 3.375% interest for 30 years AND a credit of over $8000 at closing, then you are doing great. In fact, it looks like you were charged very little in your rate if anything at all.
Normally the lender credits are for much smaller amounts with a larger interest rate bump.
How much would your interest rate be if you didn't get the credit?
05-11-2013 08:11 AM
That's the thing. We were only quoted the 3.375%. We weren't offered anything below that, nor did we ask to take negative points, but the middle check box on #2 (Section A) of the GFE was checked along with an $8100 credit.
05-13-2013 06:23 AM
i was quoted 3.375% without any credit taken yet. It can go up to 3.775% if i choose for $4k back in credit. Wish i had your scores and credit to work with....
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.