Have I made a schoolboy error?
Stupid me! I agreed to a loan of $370k, with the seller providing a $3k credit, which stems from my inspection report and a deal I subsequently thrashed out based on the issues that need resolving. Alternatively, I could taken a mortgage for $367k and used that $3k whichever way I choose. Now I find myself having to pay interest (3.125% on a 7-1 year ARM) on that $3k. Have I made a costly error? by ARO1975 from New Haven, Connecticut. Apr 1st 2011
Rick Pelleriti (RickPelleriti)
#366 ranked lender in California - 59 contributions
If I understand you correctly, you simply borrowed $3K more at 3.125%. It's deductible and factoring in inflation - it is very cheap money.You borrowed more and saved $3K out of pocket.I wouldn't worry about it.
Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions
I tend to agree. Where else can you borrow at 3.125%. If it really bothers you, pay it back on your first payment and you will no longer be paying interest on it. Hope this helps. Pat McCarthy, Northpointe Bank Mortgage, 866-901-3576
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