We received our first mortgage payment yesterday and it is higher than expected. The entire time we were working with the mortgage consultant or whatever her title is, she was telling us something different. She emailed me several "good faith" estimates. Even as we were signing the loan docs I called her and she reassured me everything was fine, the payments were what we thought. We are flipping out right now. Can a mortgage company lie to us and do this legally?
2007-11-16 01:43:40 · 7 answers · asked by Carrie 4 in Business & Finance ➔ Renting & Real Estate
The payment that is listed on the loan document you sign at closing lists the mortgage payment, not including insurance and taxes, that you willpay. The good faith estimate is just that... an estimate.
So, double check your closng papers for the specific payment on the mortgage and then add the amount of taxes and insurance you should find on the closing documents under escrows (it will be listed as some $ times a number of month). You just want the amount of tax and insurance per month.
At the mortgage payment + the tax and insurance and that should be your total amount. If that is NOT what you're paying then you have something to fight about. If it is, then it's correct and at some point there was confusion.
Sorry to hear about the frustration. Hope it works out.
2007-11-16 01:54:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
"good faith" estimates are just that...estimates. You, however, should've been informed what the actual mortgage payment would be when you closed. The mortgage company tells you exactly what the mortgage is going to be. Unless your good faith estimates did not include any funds for your escrow, they're usually not too far off. Do you have an escrow account? (Escrow accounts are basically savings accounts set up by the mortgage company that hold your money for property taxes and insurances. All FHA loans require this, but conventional loans do not) What kind of loan do you have? It's not unusual to have a mortgage payment of let's say, $1,000, AND have to put an additional $400 for your escrow. YOUR REALTOR AND LOAN OFFICER SHOULD'VE SAID ALL THIS TO YOU AND YOUR LOAN DOCUMENTS HAVE ALL THE INFORMATION.
2007-11-16 10:17:02 · answer #2 · answered by ron-D 7 · 0⤊ 0⤋
Years ago, has the only one kind of mortgage: 30 years are fixed rate borrower to have 30 years payment mortgage by fixed interest rate and payment are similarly in loan life period. This was still the most common home loan.
The borrower choice fixed rate loan because the mortgage payment is steady and may forecast, considers the easier family budget and the plan. The payment is similarly in mortgage life period, no matter interest rate change. At first, leads and the mortgage payment compared to these high-level may the adjustment rate mortgage, but
pays money compared to that low 15 year is fixed interest rates mortgage. Hope that helps
2007-11-17 01:41:12 · answer #3 · answered by bobb 1 · 0⤊ 0⤋
The mortgage broker has no control over the amounts required for tax and insurance escrow. As long as you got the interest rate promised, you have no issue of which to complain. With the stated interest rate, it's merely a mathematical calculation in determining the amount of the monthly P&I payment. Anything other than that is subject to change.
2007-11-16 10:08:25 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Yes, the principal and interest will be what you signed for. Taxes and insurance will change every year. They will collect some at closing but they are probably collecting about 1/12 per month to pay your taxes and insurance for you. At the end of the year they will adjust and you will get a refund and or a higher payment for the next year.
When you signed your papers you were only agreeing to the interest and term of the loan not what your property taxes and insurance will cost. It should be close to what you were estimated but if they find your insurance or taxes are higher they have to collect it.
2007-11-16 09:46:21 · answer #5 · answered by shipwreck 7 · 0⤊ 0⤋
When you closed on the loan, the actual payments should have been fully disclosed. You may also be escrowing taxes and insurance in your monthly payment. All of the payments they give you are quotes until you actually close.
2007-11-16 09:51:37 · answer #6 · answered by Michelle 3 · 0⤊ 0⤋
If all you received is estimates, the answer is yes. The question you should be asking is why it is higher? Was the interest rate hiked or is the difference in the escrow account?
2007-11-16 09:47:59 · answer #7 · answered by npk 7 · 0⤊ 0⤋