Tag Archives: mortgage

Photo by:  Allyson Souza

Why you owe more at mortgage real estate closing than your down payment

The settlement sheet (HUD-1) 100 series numbers page 1 adds up what your charges are to buy the house:

  • sales price
  • closing costs from page 2
  • pro rations per the sales agreement.

Below that, the HUD-1 200 series adds up your credits to buy the house:

  • Your mortgage
  • Deposit(s) you already paid the seller
  • Seller credits
  • Lender credits

Below that your HUD1 page 1 subtracts your credits from your charges and the difference is what you owe!

Unless the seller paid ALL of the closing costs (they are limited to 2-6% seller credit so this may not be possible if you have very high property taxes for example) you will owe more than your down payment, you will also all the closing costs that the seller did not pay.

What you owe at closing should be fairly close to what your loan officer showed you in writing several times (signed 1003 application page 3, fee worksheet).


biweekly mortgage

BiWeekly Mortgages?

A biweekly mortgage pays a 30 year loan off in 22.6 years.  It does that by forcing the borrower to make an extra monthly payment annually.  Just as when you are paid by your employer biweekly, every few months you are paid three times, instead of twice (because there are more than 28 days in a month), with a biweekly mortgage every few months you are paying it three times instead of twice.  In a year you will make a full extra monthly payment.

We find that if you just send in 1/12 of your monthly payment as an extra principal payment monthly, it is a lot less banking to manage then biweekly loans with 2-3 payments a month.

zero closing cost

Pennsylvania No Closing Cost (NCC) mortgage information

No closing cost mortgage tips and background information.  Break even analysis.

The No Closing Cost mortgage is becoming very popular in Pennsylvania.  It was started and the word was spread in 2006 by a large bank as a marketing idea to bring in new business as things were starting to slow down in the mortgage industry due to rates being up and the refinance boom being over.  Now, we are receiving calls for these loans every day.  But, we do not always recommend them and here is why: Continue reading Pennsylvania No Closing Cost (NCC) mortgage information

Photo by:  Pierre-Olivier Bourgeois

Should you consider financing closing costs, escrow reserves, or other cash needed at closing?

The first question we ask is, “How long do you expect to keep this mortgage?”  We will then determine a break even period for you.  That will tell us how many years (to the month) it will takes to break even for paying more money at closing to obtain a lower rate. Continue reading Should you consider financing closing costs, escrow reserves, or other cash needed at closing?