Best place to get a Loan?

[chiefs1okie]

Originally Posted by Great Expectations

If you go with an RD loan I would look at a couple of different mortgage companies/banks in the area. RD loans can be very good for the borrower, they can also be very good for the institution lending on them so make sure they know that you are rate/price shopping and ask for a Truth in lending statement so you can make a fair comparison.

Uhm... good advice, but what you actually want to ask for if comparing offers is a GFE (good faith estimate), as it would have all costs and fees involved with the loan as well as the amount financed and interest rate and payment disclosure... etc. etc.

[Great Expectations]

Originally Posted by chiefs1okie

Uhm... good advice, but what you actually want to ask for if comparing offers is a GFE (good faith estimate), as it would have all costs and fees involved with the loan as well as the amount financed and interest rate and payment disclosure... etc. etc.

Actually the Truth-in-lending (TIL) statement takes the fees from the GFE and gets you the annual percentage rate (interest rate adjusted to reflect extra fees associated with the loan). This allows you to compare apples to apples when deciding on a mortgage and not try to wade through all the BS.

[chiefs1okie]

Originally Posted by Great Expectations

Actually the Truth-in-lending (TIL) statement takes the fees from the GFE and gets you the annual percentage rate (interest rate adjusted to reflect extra fees associated with the loan). This allows you to compare apples to apples when deciding on a mortgage and not try to wade through all the BS.

We could argue this back and forth forever, fact is the TIL does not break down the amount financed to let the consumer know where he could negotiate better fees, costs, or originations etc. etc. A TIL is a snapshot of the total amount financed period. Payment, term, % rate, and total of payments over the term.

[Bill Lundberg]

Originally Posted by chiefs1okie

We could argue this back and forth forever, fact is the TIL does not break down the amount financed to let the consumer know where he could negotiate better fees, costs, or originations etc. etc. A TIL is a snapshot of the total amount financed period. Payment, term, % rate, and total of payments over the term.

There is a box on every TIL labeled "Amount Financed". I get what you're saying though and you're both right to a certain extent. There are varying degrees of "Best Deal". Someone can give you a lower interest rate and charge you a point in origination and their APR may look lower, but you will pay an extra 1 percent of your loan amount in closing costs. Is that the best deal for you just because you got the lower rate? Maybe, maybe not, it depends on your situation, the effect on your monthly payment and how long you intend to be in the house.

Sample TIL attached.