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Esther Said:

Is my mortgage lender stalling me?

We Answered:

It was not your place to contact the appraiser. It was wrong of the appraiser to even talk to you. This may be where the problem lies. With the housing market the way it is today I am not sure why you would want to pay above appraised value. I would be surprised if they order a new appraisal.

Perry Said:

negotiating with mortage lender?

We Answered:

Most all transactions are negotiable in the mortgage business. You have to be smart and do your home work to make sure you can intelligently negotiate the right mortgage for you.

First of all you have to check each GFE to see if you are comparing apples to apples and not oranges to pears on one and oranges to apples on the other.

Are all the GFE for the same product in other words, are they for a 5 year adjustable or a 30 year fixed rate.

If one GFE is for an adjustable and the others are for a 30 year fixed you are not comparing apples and apples.

Once you are comparing apples to apples now ask how did the come up with the interest rate they are charging you? If you are getting a no fee no points loan. You might ask them if you paid the points and fees what would be the interest rate?

If you are getting a no points, no fees loan then normally the interest rate is a bit higher, however, on your income tax you are able to deduct on the interest.

You may not deduct fees and points unless you pay for them. You will also be able to deduct the interest.

The decision you make should be made intelligently and base on your financial situation that you are currently in. If lower payments will benefit you now and you plan to have the capacity to have an increase in your earnings you might want to select an adjustable rate mortgage.

When accepting an adjustable rate mortgage make sure you understand the cap on the interest per year as well as per adjustment period. This understanding will make sure you understand that when the rate does adjust that you will know how much that will increase the monthly mortgage.

You may also negotiate the number of years you can pay the mortgage off, say a 30,4o or 50 year loan. The longer the amortization the less the monthly mortgage payments. Once the montlhly mortgage payments have been established you may add extra payments to your monthly mortgage payment to pay the mortgage off early.

You should always see what other options you are qualified for even though the bank, credit union or other have told you that this is best for you.

Knowing you options and having them explained to you make you more knowledgable about what financial situation you are in and what you can take advantage of.

One thing you should do is check with you income tax consultant and see what is best for you.

Most banks and credit unions will try and sell you the flavor of the month because it benefits them and they are told to sell a certain mortgage product, so make sure you are not getting the flavor of the month.

You can also negotiate the fees and points, but keep in mind that nothing comes free in the big ole captalist world, so if you want you can play one off the other and say this is what my credit union is charging me for the same loan, why are your points a little higher and if you can reduce them below the other offer I can and will go with your mortgage.

Now don't go back to the other bank or lender and see if they can beat the deal you just made, they should have given you their best offer.

Play the game fair and you will come out ok. If you don't the lender, your credit union or the bank will take you seriously and will eventually just turn you down.

I hope this has been of some use to you, good luck.

"FIGHT ON"