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Good Faith Estimate

  • Thread starter Thread starter tico
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T

tico

Guest
What is the name of your state?washington state

i recently purchased a home. a good faith estimate (gfe) was provided showing a 90% first mortgage at 6.75% rate and a second good faith estimate showing a 10% second mortgage at 12.99%. I received and signed both of these gfe's with in three days of my application. the loan closed one month later, but the loan documents were written with a 80% first at 6.75% and a 20% second at 12.99%. I didnt notice this until after the loan closed. When I contacted the mortgage broker asking for the correction to the loan he refused. he said he sent me a new gfe in the mail 7 days and covered it verbally before closing. this was untrue, I was never told about, received or signed different gfe's. Because of this error I will probably be paying about $72,000 more over the life of the loan. do I have any recourse against the mortgage broker? or the lender?
 


dworrill

Member
You probably won't live there for the life of the loan. So the added expense won't be there. The 20% second wipes away the mortgage insurance. that you probably would have paid under the other model. You get to write off more on your taxes than you would with the mortgage insurance model. When you build up some equity and improve your credit you can refi for a better rate.

No one is more responsible concerning the terms of the loan than you. You sign the documents. Read them thoroughly.

DAM
 

Ciarraine

Member
You got a better deal. Like dworrill said, with a 90% loan you would have paid for mortgage insurance, which can be as much as .5% and is not tax deductible.
 

dworrill

Member
Realistically you saved: as much as an upfront fee of approx 1.5% in addition to the monthly premium equaling to (the price of your home x .005/12). So, for a 150,000 valued home you could have paid $2250 at closing in addition to the $62.50 monthly mortgage insurance premium that is not tax deductable. After five years that totals to $6000!

Check out all of your terms. Is your second an arm or fixed? Balloon? etc. If terms are different than you expected, there could be more.

DAM
 

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