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YES and Peoples bank personal loan. First off, in Texas, this is true only for subprime cash-out deals. Secondly, although the lender is technically paying for all third party fees (title, insurance, reserves, attorney fees, etc) the lender is typically charging your loan 2 discount points (2) to buy down the rate and pay all third party vendors.
This is called a third party buy-out fee. Sometimes this works in your favor. In a situation in which third-party fees are greater than the discount points charged to your account this would make sense.
However, the difference is sometimes nominal.
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