Home Buying in 94582>Question Details

Dupedbyctx, Home Buyer in San Ramon, CA

Builders at San Ramon advertise $10,000 is given as incentive to use their mortgage company & insurance -

Asked by Dupedbyctx, San Ramon, CA Mon Apr 14, 2008

This is completely misleading and false. Any experience or advice ??
Because here is the actual scenerio in San Ramon :
- Their mortgage company charge almost 1 - 2 % more than the going rates. That translates to extra $600 to $1200 per month.
- They mislead/ mask you and charge 1 - 1.5 % points which translates to another hefty $8500 - 12500 for a 1 million home upfront which itself overshoots their incentive for no apparent reason.
- Added to this if not looked right, you end up signing for additional payments of $4000 to avoid what they legitimately call avoiding "prepayment penalty"
- Do the math $10,000 incentive vs all these costs listed above, !!
Thats a no brainer !!
- This is nothing but a plain ripoff of innocent homebuyers.
- Not to add that you may end up with a negative amortization mortgage as if this is not enough to add to all your pains.Buyers need to be aware of this and not fall for these cheap tricks by so called reputed builders such as Centex.

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1
I don't know about Centex, but I just did my financing through Brookfield. The rate was locked about 4 weeks ago, interest only 5/1 arm jumbo at 5.75%. Before I went with them, I got their quote and asked quite a few mortgage brokers, and their quote is not worse than others. The good thing about doing financing with them is they would be more cooperative if things went wrong. In my case, they were willing to give us the key before the escrow was offically closed. So far I haven't found anything wrong with the deal, unless I missed something, the only thing I paid is my prorated mortgage and property tax and nothing else. Oh, and my mortgage doesn't have any "prepayment penalty".
0 votes Thank Flag Link Wed Apr 16, 2008
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