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Replies (28)
- Jason Evans, "JasonEvans"
- Contributions:38
Carmen,
That is a reasonable cost for extending for 14 days but you should only be paying for it if the delay in cloisng was not the lenders fault.
That is a reasonable cost for extending for 14 days but you should only be paying for it if the delay in cloisng was not the lenders fault.
- Dave Skow, "daveskow"
- Contributions:1104
yes
- Anna Montgomery, "Anna Montgomery"
- Contributions:160
I give a free 20 day extention when I do loans....so .25 point for 14 days may be what the investor is charging....
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
Carmen, you can do the math to see if it makes sense to pay. Take the cost of the .25% extension fee and compare to what your payment will increase to at the new rate if you don't extend.
It may make a lot of sense.
Yes, the .25% is typical for the industry for a 14 day extension.
It may make a lot of sense.
Yes, the .25% is typical for the industry for a 14 day extension.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Yes, you could easily be asked to pay that for a 7 day extension. If the delay is their fault, make them eat it. They probably will not run you off over a quarter point, regardless of whose fault the delay is, but be fair. If it is the Seller's fault, make them pay for it,
- Andrew Adams, "203K Specialist"
- Contributions:9349
Anna,
To say that you give a free 20 day extension without qualifying it is not real fair to the consumer. If your rate was an .125 to .25% higher than the lender that they chose to lock with from the get go.... that free 20 day extension was not really free! Nor does telling them that you offer that help them in understanding how reasonable a fee of .25% is to extend the rate.
Which it is reasonable.
To say that you give a free 20 day extension without qualifying it is not real fair to the consumer. If your rate was an .125 to .25% higher than the lender that they chose to lock with from the get go.... that free 20 day extension was not really free! Nor does telling them that you offer that help them in understanding how reasonable a fee of .25% is to extend the rate.
Which it is reasonable.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Anna,
I must agree with Andrew.
First of all to mention your "free 20 day extension" did not contribute to the question.
No one in business for a profit would offer this costly of an incentive for no charge. All of us know that. Somewhere in your fees or rate this cost is being paid.
There's no such thing a "Free Lunch."
I must agree with Andrew.
First of all to mention your "free 20 day extension" did not contribute to the question.
No one in business for a profit would offer this costly of an incentive for no charge. All of us know that. Somewhere in your fees or rate this cost is being paid.
There's no such thing a "Free Lunch."
- Anna Montgomery, "Anna Montgomery"
- Contributions:160
Andrew...
I do give a free 20 day extenstion to my customers if I need it. That is something I can do. I don't charge a higher rate to do this. My fee's are very low. What I said was that the investor must be charging this .25 fee to extend the loan.
I do give a free 20 day extenstion to my customers if I need it. That is something I can do. I don't charge a higher rate to do this. My fee's are very low. What I said was that the investor must be charging this .25 fee to extend the loan.
- Anna Montgomery, "Anna Montgomery"
- Contributions:160
Rudi...
I do offer this for free..I could charge the customer but I have never done this!! I get up to a 20 day extention....it's something I can offer. I do know that investors do charge for this....I said that the .25 fee must be what the investor is charging...
I do offer this for free..I could charge the customer but I have never done this!! I get up to a 20 day extention....it's something I can offer. I do know that investors do charge for this....I said that the .25 fee must be what the investor is charging...
- Hamp Yonce, "Zilluminati"
- Contributions:3463
I wonder why you wouldn't just call your 30 day lock, a 50 day lock.
I think the point is, that the extended lock period is priced into the loan by your company, and without it, your company could actually do loans cheaper. Further, each customer that does not require the extension, but has paid for it, due to slightly higher costs across your rate sheet, is providing pure gravy to your company.
It is actually a clever way to be more profitable. If LO's do their job, company banks extra funds, and doesn't even have to pay LO any extra. I guess they could fire LO's who consistently need the extension time.
I think the point is, that the extended lock period is priced into the loan by your company, and without it, your company could actually do loans cheaper. Further, each customer that does not require the extension, but has paid for it, due to slightly higher costs across your rate sheet, is providing pure gravy to your company.
It is actually a clever way to be more profitable. If LO's do their job, company banks extra funds, and doesn't even have to pay LO any extra. I guess they could fire LO's who consistently need the extension time.
- Brian G. Allen
- Contributions:334
The charge to extend it for 14 days is reasonable. What was the delay and was it your responsibility? How long was your lock?
Anna, can you give us your rate today for 30 days and you are telling us you give a Free 20 day extension.
Anna, can you give us your rate today for 30 days and you are telling us you give a Free 20 day extension.
- Anna Montgomery, "Anna Montgomery"
- Contributions:160
Premiere
My 30 year fix rate for 30 days is 5% no points. I have up to 20 days to extend the loan. My company charges .015 per day. I take that hit. I have never charged a customer for this. We have 2 fee's that we charge ..$860 plus fee's from the customers title company. So just so everyone knows , it's not that I charge higher fee's for this. I want to help the customer.
You guys don't know me but I am really one of the good guys (gals) here. I just want to help. I wish I didn't answer the question now...
Have a good night everyone!
My 30 year fix rate for 30 days is 5% no points. I have up to 20 days to extend the loan. My company charges .015 per day. I take that hit. I have never charged a customer for this. We have 2 fee's that we charge ..$860 plus fee's from the customers title company. So just so everyone knows , it's not that I charge higher fee's for this. I want to help the customer.
You guys don't know me but I am really one of the good guys (gals) here. I just want to help. I wish I didn't answer the question now...
Have a good night everyone!
- Andrew Adams, "203K Specialist"
- Contributions:9349
Anna,
It's not a matter of being a good guy or not...@ .015% per day on a 300K loan that is $45 bucks a day $900 for 20 days.
If you had priced that loan out and were only making $800 on the loan it would be pretty foolish of you to pay $100 to simply be the good guy. Many of the LO's on hear would absorb what they could to help their buyers but at some point there is no more meat on the bone!
It's not a matter of being a good guy or not...@ .015% per day on a 300K loan that is $45 bucks a day $900 for 20 days.
If you had priced that loan out and were only making $800 on the loan it would be pretty foolish of you to pay $100 to simply be the good guy. Many of the LO's on hear would absorb what they could to help their buyers but at some point there is no more meat on the bone!
- carmen25
- Contributions:128
My rate lock was good for 45 days (expires 02/01/2010) @ 4.875%.
I need to extend because I am doing MAJOR ...MAJOR repairs to the house before I can close escrow. The contractors are a little behind. But after I finish fixing the house, an appraiser needs to come out to check off the repairs (assuming 1 week) and then the lender needs to draw the loan docs (assuming 3 days) and then I was just told that I need another 3 to 5 days for HUD and grant deed, and then I can close....So that is about 2 weeks. My lender told me I have to close by the 1st so not to lose the rate lock. I will finish fixing the house and get an appraiser out before Feb.1st, but then I have to wait for the HUD and grant deed, and that is why I need the extension.
Any input?
I need to extend because I am doing MAJOR ...MAJOR repairs to the house before I can close escrow. The contractors are a little behind. But after I finish fixing the house, an appraiser needs to come out to check off the repairs (assuming 1 week) and then the lender needs to draw the loan docs (assuming 3 days) and then I was just told that I need another 3 to 5 days for HUD and grant deed, and then I can close....So that is about 2 weeks. My lender told me I have to close by the 1st so not to lose the rate lock. I will finish fixing the house and get an appraiser out before Feb.1st, but then I have to wait for the HUD and grant deed, and that is why I need the extension.
Any input?
- Dave Skow, "daveskow"
- Contributions:1104
pay the extension fee and get loan closed asap
- Andrew Adams, "203K Specialist"
- Contributions:9349
You seem to be really going up against the wire....That always makes me nervous...
- carmen25
- Contributions:128
why Andrew?? :\
- Larry Jacobson, "Clearpoint"
- Contributions:1214
Pay the extension! Why stress yourself out even more.
Anna,
Your 30 year fixed rate at 5% with no points is much higher than what probably 90% of the people here could provide. You don't seem to understand how the extra 20 days is built into the pricing you offer but whatever. You seem dead set on just trying to pimp yourself as the next best thing and we are here to inform anyone reading this that you are not. Many loan officers try the same angle that you are trying; you want to make it seem as if you offer something truly magical and special; you do not!. As brokers, we all have options to place our loans with people that offer free floats or extended locks but the truth is that it's cheaper to lock it for 30 and be dilligent and get it done. Even my 60 day lock is lower than your 30 day"with a free additional 20".
Anna, stop the pimping and get real!
Your 30 year fixed rate at 5% with no points is much higher than what probably 90% of the people here could provide. You don't seem to understand how the extra 20 days is built into the pricing you offer but whatever. You seem dead set on just trying to pimp yourself as the next best thing and we are here to inform anyone reading this that you are not. Many loan officers try the same angle that you are trying; you want to make it seem as if you offer something truly magical and special; you do not!. As brokers, we all have options to place our loans with people that offer free floats or extended locks but the truth is that it's cheaper to lock it for 30 and be dilligent and get it done. Even my 60 day lock is lower than your 30 day"with a free additional 20".
Anna, stop the pimping and get real!
- Timothy Sutherland, "SunTrust"
- Contributions:619
another strategy is that if rates are same or better than when you locked, let the lock expire and then re-lock; it saves the extension fee.
Tim, I'm not sure you understand how wholesale works. If the lock expires and rates are better, most investors will allow a relock at the same terms with no fee; but no one that I know of will allow the lock to expire and a relock at better terms. The borrower would have to wait for at least 30 days after the lock expires to relock at a better rate than initially.
- Timothy Sutherland, "SunTrust"
- Contributions:619
It works the same on retail. we go by worse case; so if rates are same or better then just let it expire then relock it (at the original terms). If rates are worse then extend it and charge the extension fee.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Don't they also usually charge to re-lock the loan?
- Timothy Sutherland, "SunTrust"
- Contributions:619
no
- carmen25
- Contributions:128
Oh yes I will pay for the extension. I only would need 5 to 7 days extra. Now I know that I am not being charged too much, thanks to all of you!
I just want to close the damn thing, I can't wait!
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Carmen, You, or the Seller, need to be cracking the Contractor whip.
- Mike Politzer, "Mike Politzer"
- Contributions:630
yes
Fee for Extending Rate Lock..
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