Loan Scenario: CA, $43,500, 774, 75% LTV, Purchase

Not familiar with market conditions costs.

seeking opinions:

1 bedroom condominium

Win HUD bid , under contract to close Sept 4th

Rates for August 11th 2009

2 Lenders offer, fixed 30Yrs 6.0%,

One disclosure shows APR 7.027% for 25% downpayment

been told rate is justified because will rent condo

Origination + 2 points + escrow fees+ other closing fees:

That lender   25% down + $5721.95 (processing 455, escrow fee 1500, appraisal 575 Etc.) Total cash to close $20,221.95

other lender APR not available 20% down + $4956,  (Origination + 2 points + escrow fees+ other closing fees) Total cash to close $15,356

Will apreciate your comments and advise

Thanks in advance

Benjamin

High points and fees aren't a big surprise because you have to consider the size of the loan.  The fact of the matter is that despite it being only a $43,500 loan, it will likely be just as much work as a significantly larger loan.  An LO is not likely to feel it is worth their time unless they can make 2-3 points minimum.  Otherwise they could just focus on the next deal which could easily be $200K loan and significantly more profitable despite being the same amount of work. 

Oh,  I see...

The LO wrote that she will review the GFE as she saw some errors,

hopfully they will be revised in my favor as she will not give

any further discount to what was quoted. 

Thank you for the explanation.

Best Regards,

Benjamin