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New Contributor
Posts: 78
Registered: ‎12-16-2008
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Estimated Closing Cost Help

Hello I just received an estimated closing costs from NFCU on my preapproval letter.  They seem really high and I am wondering if they are high or normal.  I know these are estimates and not a GFE etc but if they are high I wonder if I should look for a new lender.  Here is a breakdown of what they said:  Thanks

 

Loan Amount $506,625

Interest Rate 3%

San Diego, Ca

Origination Fee$5,066.25
Discount Fee$1,266.56
Appraisal Fee$525.00
Credit Report$22.00
Flood Determination Fee$7.00
Tax setup fee$5.00
Prepaid Interest$957.73
MTG Insurance Premium$8,865.94
Hazard Insurance Premium$1,671.86
Settlement Fee$2,795.00
Owners Title Insurance$1,474.75
Title Insurance$1,173.61
Recording Deed$62.00
Transfer Stamps$577.50
Pest Inspect Fee$200.00
Total W/O Escrows$24,670.20
  
2 Mos Hazard Insurance$278.64
5 Mos County Property taxes$2,433.60
Escrow Total$2,712.24
Total$27,382.44
2/25/09 Transunion-698, Equifax-666
9 Months After BK
Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
0

Re: Estimated Closing Cost Help


monkatom wrote:

Hello I just received an estimated closing costs from NFCU on my preapproval letter.  They seem really high and I am wondering if they are high or normal.  I know these are estimates and not a GFE etc but if they are high I wonder if I should look for a new lender.  Here is a breakdown of what they said:  Thanks

 

Loan Amount $506,625

Interest Rate 3%

San Diego, Ca

Origination Fee$5,066.25
Discount Fee$1,266.56
Appraisal Fee$525.00
Credit Report$22.00
Flood Determination Fee$7.00
Tax setup fee$5.00
Prepaid Interest$957.73
MTG Insurance Premium$8,865.94
Hazard Insurance Premium$1,671.86
Settlement Fee$2,795.00
Owners Title Insurance$1,474.75
Title Insurance$1,173.61
Recording Deed$62.00
Transfer Stamps$577.50
Pest Inspect Fee$200.00
Total W/O Escrows$24,670.20
  
2 Mos Hazard Insurance$278.64
5 Mos County Property taxes$2,433.60
Escrow Total$2,712.24
Total$27,382.44

Well, a couple of things jump out;

 

First off, the Escrow total won't change, as property tax rates are what they are.  Your MIP is over a third of the remaining, which is fixed no matter who your broker is as long as you're going with the FHA.  You're paying a 1200 dollar discount fee, so I'm guessing you're buying down points which is why you are at 3%.

 

The origination fee looks like a flat 1%.  You might be able to do something about the settlement fee by choosing another title company. It looks like you're paying title insurance for yourself and for the seller, which presumably was negotiated by your agent.  Almost a thousant is prepaid interest, out of your control.

 

I don't know how much your Hazard insurance should cost or who provides it.

 

 

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
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Re: Estimated Closing Cost Help

Personally the fees are reasonable (maybe a little high), but you can do better

 

In my opinion I would make a few comparisons.

 

Banks, Credit Unions do not have to disclose all the cost such as the Yield Spread Premium you are paying.

Good Luck
May all your dreams and wishes become a reality!
Super Contributor
Posts: 6,460
Registered: ‎07-03-2007
0

Re: Estimated Closing Cost Help

thats a pretty low rate..... which requires a full fee deal.

if you plan to stay there a long time, this is a good long term strategy.

 

a little higher rate will afford you some concessions on the costs.... a good short term strategy if you don't plan to stay in the loan very long

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
New Contributor
Posts: 78
Registered: ‎12-16-2008
0

Re: Estimated Closing Cost Help

I wanted to thank everyone for their replies. 

2/25/09 Transunion-698, Equifax-666
9 Months After BK

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