detlef Posted January 11, 2012 Share Posted January 11, 2012 I'm looking at two loans that both offer credits towards closing costs. One gives out more money but has a higher rate (obviously). I get that and can easily do the math in terms of how long it would take to save that much in the lower interest loan and such. Here's what I don't get. The estimated pre-payment costs are almost $1000 different. That's escrow, right? If I understand correctly, that's paying for something you paid for before to your last loan and you'll get back after closing. Isn't that a number that neither of these banks truly knows or has any control over? That, if I pay $1000 more in estimated pre-payment costs, I'll get that much more back once the dust settles? In other words, if I'm trying to look at apples to apples, should I just ignore both of those estimates? Quote Link to comment Share on other sites More sharing options...
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