Lubbock Avalanche-Journal from Lubbock, Texas on April 5, 1975 · Page 6
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April 5, 1975

Lubbock Avalanche-Journal from Lubbock, Texas · Page 6

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Location:
Lubbock, Texas
Issue Date:
Saturday, April 5, 1975
Page:
Page 6
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Page 6 article text (OCR)

5. 1975 Looking for a house?. Don'I forget to search for hidden costs In financing as, carefully as you hunt for holes in the roof or cracks in the faster. Savings and loan associations have reported an increase in the amount of money available for mortgages; the recent tax hill provides a credit of up to $2,000 to purchasers of new houses. Some Americans are deciding that now is the. time to buy a house and, if they are hot careful, these consumers could be in for a rude awakening when they go to sign the final own trship papers. Th? mortgage itself is only part of the cost. Bankers-and mortgage company, officials warn that homebuyers should be prepared to pay substantial sums in one-time payments for a variety of services. Remember: because of interest, the amount you pay over the years of your mortgage will bo much more than tho loan it self. The Mortgafie Bankers As soctation of America said, for example, thai a person who takes out a $35,000 loan to be repaid over 20 years with 9 per rent interest, will have monthly payments of $315. That means 2<10 payments totaling $75,600. More than half of the money is interest. A bill passed by Congress protection and information. The legislation, which takes 'effect June 20, generally requires lenders to provide borrowers with what is called a "uniform disclosure settlement statement." It also prohibits lawyers or realtors from giving or getting kickbacks for referring settlement service business to anyone and makes it illegal for a seller to require a buyer to purchase title insurance from particular company as a condition of sale. The settlement statement j must be presented no later than 12 calendar days before the final settlement. It must include estimates of all settlement costs the buyer will have to pay at the time the deal is closed. Tile Department of Housing and Urban Development is working out exact details of what the form will include. A proposed draft covers such itrms as loan origination fee, loan discount points, closing fee. title search and escrow charges. Here is a guide to some of the terms involved in purchasing a house: I/ian origination fee: a charge made by the lender to cover Hie administrative cost of making tse loan. It usually is calculated as a specific pcr- cenlagc of (he face value of the mortgage. Loan discount or loan discount points: a one-time lump sum payment to the lender in a a case where the interest rate on a mortgage is less than the ;oing market rate. This could iapp*n ih 'several .c^ses — in states where usury laws limit mortgage rates, for . example, jr on Velerons and Federal Housing Administration loans where the interest rate is-;set by federal >law. Suppose;* tender can make a regular mortgage loan thai -wil} yield an average annual return jf 8% per cent over 25 years. The maximum return on an FHA loan may be set at 7% per cent over 30.years. The lender, figures the difference between' the amount he would get for the conventional loan and the return orr the FHA loan. He converts this into points, with each point equal to 1 per cent of the value of the mortgage. On the example used, about nine points or 9 per cent of the face value of the FHA mortgage is needed to equalize the two loans. On an FHA or VA loan, the lender is prohibited from charging the buyer more than one point and the seller must absorb the additional cost. This ban ' doos not apply to conventional loans. Title search: lo determine whether there 1 :«rc any oustand- ing claims to the property involved, you must hire a title or abstract company or a title attorney lo search through the records at the local courthouse or wherever is necessary.' Attorney's fee: for the lawyer who handles the closing transaction. ' : . dosing fee: a charge" made by the person or company handling the final clerical and ad- ministrative'details of the settlement; it may'b* part of the attorney's- fee or listed separately. -. . ' Recording fee: a charge made by a local authority to record .the deeds that transfer the property from, the .seller to the buyer. Termite inspection: in certain parts of the country, the house must be checked before the settlement for harmful'pests. Appraisal foe: if the buyer wants his own appraisal in addition to one furnished, by the lender, he must hire someone , SrCAINmCTKD .DALLAS (AP) — The Dallas Society for the Prevention of Cruelty to Animals was indicted by a grand jury Friday on charges of animal cruelty. The SPCA was accused i.of misuse of a decompression chamber used to kill unwanted animals. himself. It also may be a. good idea in some cases to hire an engineer or architect to inspect the property, Esc*>w fee: in some sections of the country, there is a onetime charge tor the services of a ! third party who hofds 'the buyer's money. for transfer, at the time, of, the settlement, to Hie'seller. In the case of a VA loan, the seller pays the fee; in other loans, the borrower may be charged for this service. SW ON YOUR COOLING t HEATING v :£*••'•'' ^^jammi Ik^M^AtoM ESTIMATES JB'$ HOME INSULATION Col (806) 792-3583 Henry Hock has 17 reasons why you should come to us for income tax help* Reason 12. Our people have been specially trained...and keep abreast nf all the latest tax laws. \Ye will do our best in preparing your return. And then we'll carefully check it for accuracy. THE INCOME TAX PEOPLE 4241 34th Town & Gauntry Center 4716 Ave. Q Family Park Center OPEN 9am-9pm WEEKDAYS 9-5 SAT. & SUN. PHONE 799-4376 OPEN SUNDAY - NO APPOINTMENT NECESSARY A!M in Sears 1625 13th St. Curing tegular Store Hour» BIG STOCK LIQUIDATION Similar To Illustration 3 PC. KING SIZE BEDROOM SUITE Includes: Dresser with mirror, nigh) s)ond 4 king size headboard with mattresses. Or* Only! ROCKING LQVESEATS $ SPANISH COFFEE & END TABLES ~— EACH 2 PC. LIVING ROOM GROUP $! KELVINATOR HOME FREEZERS • Big 14.4cu. ft. capacity • Five deep door shelves • Four fast-freeze interior shelves • Bosket for • -'odd size packages • Defrost drain • Four adjustable leveling legs WHILE THEY LAST! $ 258 3-PC. SPANISH LIVING ROOM Includes: Sofa, Chair I loveseat HIGH BACK VELVET ROCKERS < willy •••••••••»•••••••• SPANISH NAUGAHYDE LOVESEATS Only " ^" ^^^ ^^^H^^^ ^^» : ^^^B^ ^^* ^^W^^* ^HV ^^V •• ^^^^^r B^B ^MB ^M^B kHHrn Terrm— Financing Available — Op«n Lat« to Serve You. Family Pork Center . 744-6527 TOWN & COUNTRY SHOPPING CENTER 4th & University Across from Jones Stadium Sporting Goods OPENING SPECIAL "360" GOLF OUTFIT TRUE-TEMPERED DYNALITE"R" SHAFTS WILSON "340" Golf Outfit 9:30-6:30 Mon.-Sat. Open Mon & Thurs. until 9:00 P.M. •Set of 8 IRONS(3 Thru 9 Plus P/W) Precisely croft- ed wilh the new toe-weighted iron blade for greater hitting area.' . •Set of 3 WOODS (1-3-4) Slroto-Block heads hov. brass back Weight ond oversize face insert. Finished in .beautiful antique ooV. •A. J. Golf Cert Folds easily, adjustable & brackets. 10 inch wheels lightweight. • HALLMARK COMPARTMENT BAG Deluxe grodj expanded vinyl Shah saver styling Reg. 279" $17099 Sporting poods 4th & University Given with Love Received with Pride radiant and aijlou) beautiful Mother , she gives oj herself , (\ t ,f] l^^^^\. in many \ ways with dignity and grace Mother is the center and heart of... Mother's Medallion can be purchased as a pendant or pin- pendant in gold filled or sterling silver. personal birthstones available to identify each family member Pendant n S1Q95 I 7 pt"3.SO ftr MrtiwtefM JONES JEWELRY tonka m«fka rd M»«t«rchorj« 763-4945 INFLATION FIGHTERS! TOWN AND COUNTRY LOCATION ONLY LADIES SANDALS Reg. to $25.95 SUSHED-TO SO90 9 RICH VARIETY OF STYLES. COLORS, AND TYPES TO CHOOSE FROM SIZES 5-10 PLAY SHOES HIGHLY SCUFF RESISTANT REG. 8.95 REDUCED to $^95 4 SIZE 5-12 WHITE WITH POPULAR BLACK HIGHLIGHTING STRIPES FITTED BY OUR PROFESSIONALS NO, RIB OR SIRLOIN Furrs Pnotcn ib, r.. t * # GROUND BEEF (GROUND FRESH PAILY e9*

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