As you all know I’ve been saving for a bedroom set, I took half of my saving a paid on my student loans, thinking I could save another $700+ by end of the year.
Well I get a call from my sister and her friend is selling a wood bedroom set. Though wood isn’t my first choice, if the price is $500 or less I’ll make it work. I’m going on Wednesday to look at it. Fingers crossed.
Well I looked at the loan docs and I’ll admit, I questioned the amount, it was explained; however I didn’t realize I didn’t understand until I got my statement. I consider myself pretty literate, however I guess not. Basically when the loan officer/broker told me that I was correct that the balance was the $109k she didn’t explain the charges. So I assumed that was what I was financing, lesson learned. I’m annoyed, only because I told her I felt like the process was being rushed, two, when communicating I think she deliberately played on my ignorance. I also received a gift card from here with a note that it was my application fee. I’m pissed because I questioned this and she told me it would be refunded after the closing, well she didn’t tell me it would be in the form of a gift card. Didn’t know I had to ask if this would be a check, gift card or cash.
I also received a huge check today for my escrow and taxes. I’ve put this in my EF account, contingent on the tax bill in November, I’ll use this to pay the bill, I’m almost certain I won’t have enough in my escrow account. What ever the balance is after taxes and insurance, I’ll pay down the principal.
Long run when I look at it and crunch the numbers, the overall savings is worth it. My break even is actually two years. I’ll start back paying an extra $100 on the principal.
Lesson Learned
August 4th, 2020 at 02:38 am
August 4th, 2020 at 05:47 am 1596520031
Is the new mortgage company escrowing taxes and insurance? Given this shady move. you might want to verify that they escrow correctly each month.
Hopefully you can use the gift card anywhere so you can use it for food and other necessities and use the cash from that for debt pay down.
I am sorry you were made to doubt yourself by someone else being underhanded. You should never feel rushed to make a financial decision, you work hard for your money!
August 4th, 2020 at 04:08 pm 1596557337
Good luck! Glad it'll be beneficial overall.
August 4th, 2020 at 05:53 pm 1596563635
You were misled by this broker. They rolled their costs and other charges into the loan balance for a total of $10,000 and rushed you into signing. That's why it's so important to read the disclosures before you agree to anything.