Builder's "preferred lender"

[ezdriver]

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@Anonymous wrote:

Just wanted to update everyone, and hopefully get some input from everyone.

So the builder quoted us 4.49 with 0 points.

I was quoted through a mortgage broker 3.75 with 0 points, BUT the estimated closing costs are almost $7k (granted, this was just a quote and not a Lender Estimate, which they are working on getting me)

If I use the builder's lender, of course closing costs are paid, and we would only be responsible for prepaids.

I did the math and it would take over 8 years to recoup the money laid out at the beginning.  I plan on staying in the house for longer than 8 year, but life does happen after all.  Any advice or input would be greatly appreciated.

TIA

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Did you receive a GFE from each lender? If not, then your comparision will be flawed. You must look at every single item/fee for both.

You don't say whether or not your builder's "quote" include an closing cost contribution from the builder. You don't say what the broker fee is. Feel free to publish your GFEs [after redacting the institution names, etc] and folks here will then be able to provide reliable guidance.

Without the above information, then I recommend that you go with the lower rate. That's my "finger in the wind" guess.

[Anonymous]

So I wanted to update everyone on my situation.  I received two different LE's from different LO's.  I received a GFE from the builder's lender (since I technically applied for the loan before 10/04, I didn't get a LE).  I compared all 3 and ended up with the builders lender.  They were 0.25% higher, but they are paying $6110 towards closing.  The difference in the payment will take 18 years and 10 months to recoup (and hopefully we have moved on to bigger and better things by then)

This site has been so helpful, I want to thank everyone for all of the advice and recommendations.

[Anne1208]

We will likely go with our credit union because they have a huge discount on PMI.  Our PMI on a 5% down loan is supposed to be $14k upfront or $400/mo, but the CU has discounted PMI available (DEEPLY discounted) so we are paying $7000 k upfront PMI premium and thats all the PMI we will ever pay.

Saving money on that and having it done upfront is great and a big priority for us, esp bc this is a house we will be in for a long time. 

[Anonymous]

I asked the builder's LO if they can match the GFE I was getting. They did, so definitely wouldn't hurt to ask. Glad to see you are getting very close to what you were offered