LE Page 1
What is Caliber's prepayment penalty?
There isn't one!
What are transfer taxes? Why is nothing shown here?
Transfer Taxes are for Purchas Transactions. This is the city, county, or state’s charge on the change of real estate. Fun fact: Texas has 0 transfer taxes. California, New York, and Florida have the highest amount of transfer taxes.
What is the APR? How does it differ from the actual interest rate?
The interest rate is the percentage you will pay to borrow the money for your home. The APR reflects the total cost of the loan, including points and fees.
Why do I receive so may Loan Estimates?
Numbers are updating in process. The average customer receives 8 LEs per transaction.
Under Projected payments, your client wants to know if they are in a 5 year ARM. They see years 1-4 and years 5-30. Explain what this means.
Because this is a conventional loan, this is when the borrower’s mortgage insurance will fall off.
I’m looking at my Loan Estimate and it says my appraisal is $405. Why did you charge me $199?
What we charge is a deposit. The rest of that is baked into your Total Closing Costs, under Calculating Cash to Close.
What is “In 5 Years”?
This shows the amount of money that will go towards interest and how much will go towards principle in 5 years.
Where does the MIP refund show on the LE?
It doesn’t! It will be on the CD. Set the right expectations.
Is the client paying anything monthly towards HOA? How do you know?
No! Nothing is shown under “other” in taxes and insurance.
What are prepaids and why is it set at 15 days in Section F?
Prepaids are the cost of borrowing money over the period of time between your closing date and the date of your first mortgage payment. The initial LE will show a minimum of 15 days.
Explain TIP and how this number can be lowered?
Total Interest Paid. Pay extra, refi, bi-weekly payments
Where can I direct my client if they have questions about the LE:
CFBP- There is an interactive webpage on the CFPB that breaks down the LE.
Your client is upset, because we said their closing costs were going to be around $3000. Why is it showing $5099?
Taxes and Insurance are what is “other”.
Why am I paying a flood determination fee? I am not in a flood zone.
We are determining if you are in a flood zone. If you are, you will have to pay more in costs. This is standard on every loan, since flood zones change.
Why do I care if Caliber services my loan?
You know who you’re making your payments to, and you’re our Customer for Life!
What is the difference between the 1003 vs. LE vs. CD?
Application- Estimate- Final Figures
Is this a cash out Refi? If so, can this number change in process?
Yes! $24,901. And Yes! If the appraisal comes back lower or DTI increases.
What is an escrow account and how does it work?
A non interest-bearing account used to make payment on your behalf for taxes, HOI, or flood insurance. We will collect an amount based on how often you pay, along with a 2 month cushion.
In Other Considerations, under Refinance, why may I not be able to refinance this loan?
We can’t predict the housing market and your home’s value when you are ready to refinance
When do I walk my client through an LE?
When they receive their initial disclosures! The LE tells customers to shop, so we want them to feel confident with what they are seeing and signing!