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Wed Jun 27, 2018, 12:35 AM

25% Mortgage loan down payment rejected

Why would a bank refuse to take a 25% down payment. Requiring 20%

They just keep arguing that we could do better with the money in the market.

7 replies, 2393 views

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Reply 25% Mortgage loan down payment rejected (Original post)
California_Republic Jun 2018 OP
cpamomfromtexas Jun 2018 #1
marylandblue Jun 2018 #2
California_Republic Jun 2018 #4
marylandblue Jun 2018 #5
exboyfil Jun 2018 #6
exboyfil Jun 2018 #3
BadgerKid Jun 2018 #7

Response to California_Republic (Original post)

Wed Jun 27, 2018, 12:37 AM

1. Well thats half true, but only if market is going up.

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Response to California_Republic (Original post)

Wed Jun 27, 2018, 12:42 AM

2. They make money on the interest payment so you are cutting their profit

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Response to marylandblue (Reply #2)

Wed Jun 27, 2018, 01:00 AM

4. So we just need to find another bank?

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Response to California_Republic (Reply #4)

Wed Jun 27, 2018, 01:01 AM

5. Yes, or a mortgage broker

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Response to California_Republic (Reply #4)

Wed Jun 27, 2018, 01:03 AM

6. I love my credit union

Last refinance they kept the mortgage in house. I almost felt like Jimmy Stewart in It's a Wonderful Life. How often does this happen anymore? I have gotten tired in the past of trying to track down my mortgage holder (same with my student loan earlier).

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Response to California_Republic (Original post)

Wed Jun 27, 2018, 12:59 AM

3. Seems very odd

Could the paperwork have already been prepared? If there were points for origination fee and buying down interest rate, the bank would get less dollars for the loan.

As far as the mortgage, you could kick in the 5% in the first payment. Disadvantage is that your payment amount would be higher per month, but the advantage is that the loan would be paid off sooner.

Also you get interest rate breaks for higher amounts for your mortgage. For example when I refinanced my house to get a lower interest rate, I did $100K (actually owed less), but this gave me a lower interest rate. Could you be at one of those break points?

What you do with your finances should be no business of the loan company. Usually they only care about the credit rating and whether the appraisal comes in at the needed value. It seems unprofessional to me even.

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Response to California_Republic (Original post)

Wed Jun 27, 2018, 04:16 AM

7. Along the lines of bank losing money

Maybe it has certain criteria in mind to meet in order to sell the loan. Maybe this bank is interested only in a quick buck. It pays to shop around.

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