Like some opinions on these HML terms

[Christopher B.]

Cash buyer ended-up not performing on a house I have for sale so I am looking into HML for a package of 4 properties I am buying from an estate. The house I have for sale has an est. market value of $240k based on comps (confident appraisal will easily support), I own this property free and clear. Below are details of my purchase and the HML I am being offered.

Purchase Price: $250k

Current Value: $350 (conservatively)

Cash on-hand: $116,000

Loan Amount: $140,000 - $145,000 (closing costs, insurance,will likely fund monthly payments, etc)

HML:

1pts

3% prepayment penalty (so basically 4pts)

$2,000 Appraisal/Underwriting/Processing Fee

They said the fees and points can be rolled into the loan. I've never used a HML and know nothing more than what I've read on here. Does this sound kosher and reasonable? I've seen where some pay 5pts plus 15% interest, etc, though with the processing fees it looks like I'm paying closer to 5.5pts. The fact they're willing to roll the fees into the loan amount make me feel like they're not a scam. My biggest worry is the company isn't legitimate and then I end-up losing a great deal.

Thanks in advance for your time and any responses.