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- Watched parasite. Started slow, but was decent overall. Didn’t deserve 99% on rotten tomatoes and 8.6 on imdb, in my opinion.
- Housing.
- Talked with both roger and jay.
- The government takes a cut when a house changes hands, of course. For a title, it’s transfer tax. For a co-op, it’s flip tax. This is 15k for my spot. Seller pays this (in 99% of cases).
- Realtors. Seller pays both. Usually 2.5-3%.
- Appraisal charges, $700. Round up to 1k.
- Attorney fees, usually 2k.
- Origination charges, the actual fees to the lender. 7/1 arm, used the cost waiver down to 2.25, 1.388-0.5=0.888, then multiply by loan total (615) to get $5,461 i have to pay at closing. Add 1240 static fee on top of that ($400 discount for already being a BoA member), for a total of 7k.
- All said, this means I’m paying $10k in closing, on top of the 210 down.
- Timing is phenomenal. Shit is about to hit the fan, banks tightening underwriting guidelines tomorrow. Need to lock in today.
- BoA is waiving extension fees due to coronavirus, giving at least 30 extra days. So if we lock today, we’d get until July 17 to close nominally, and could extend to August 17 guaranteed.
- Appraisal is going to be the long pole during this time.
- Points. Basically giving the user flexibility in being able to buy down the interest rate by increasing the fee at closing, or reducing fee at closing for a higher interest rate. Just have to to math to see what’s best. As a senior lender, Roger can get 0.5% reduction. This is basically 3k less at closing.
- Again, I don’t qualify for the rate reduction because I can’t put my shareworks money in merrill lynch.
- 7/1 is a nice balance of risk between 5 and 10, although I’d be likely fine with 5.
- To get the 0.5 point reduction at closing, emailed Roger:
- Loan amount (615).
- Rate lock period, 90 days.
- Type, 5/1 arm.
- Rate itself %.
- Points (0).
- Eg: Shopping for competitive rates, spoke with fsb, they offered 10/1 arm at this rate for 90 days on a loan amount of 600, and 0 points associated with locking that rate. Is this something that you can match or beat?
- Consulted with both my attorney and lender, locked the rate. Again, summarized: 2.25%, 7/1 ARM, monthly is actually only 2351 (+ 1609 for maintenance + XXX for insurance), and ~10k closing costs + 210k down.
- Wrote 2 templates for letter of recommendation; one professional and one personal. Sent the professional to Allie/Harner/Ken and personal to Eric/Derek/Jcriss.
- Created an account with the IRS to download return transcripts, uploaded to the package manager. Absolute insanity that a co-op board believes themselves to be rightful accessories to this information. It should be an exchange between the lender and lendee, and not even to this depth. I have private equity in substantially higher risk, higher volatility, and higher-worth assets (SpaceX and Citadel), with more intimate business partnership, and the tax/finance/reference/application scrutiny is greater for the co-op on all fronts. Crazy.
- Added signatures to the 2017 and 2018 returns.
- Submitted main application section, now that I have all ref names.
- Submitted 5 docs with seller sigs merged with mine.
