FHA Rate for Northeast Ohio

[chartley3]

Hi Everyone,

Just got off the phone with my Mortgage specialist and was told that the rate for FHA with my bank is 5.875% on a 30 yr fixed. I feel this is an excellent rate and I should be able to shave a 1/4-1/2 a point off if I have them auto deduct it from my checking. I just wanted to ask Shane or DallasMortgageGuy if this is a solid rate.

Thanks,

[DallasLoanGuy]

Depends.

A list of lender fees would complete your question.

Explanation: Rates and fees go hand in hand. If you are paying outrageous fees for that rate it isn't good.

Lender fees are listed in the 800s numbers on the GFE

[chartley3]

As soon as I get the good faith estimate Ill know more. I do know all I need out of pocket is $350 for the Appraisal and App fee. Everything else I can roll into the loan. Im also looking to get 10-15K out at the time of close which will go back into the house.

[chartley3]

Dallas.

Just got the good faith estimate and here is the breakdown

Origination Fee 1.040.00

Appraisal Fee      300.00

Credit Report           8.95

Application Fee    200.00

LP Auto Undwrit     13.32

Underwriting Fee

[chartley3]

Dallas.

Just got the good faith estimate and here is the breakdown

Origination Fee                        1,040.00

Appraisal Fee                              300.00

Credit Report                                   8.95

Application Fee                            200.00

LP Auto Undwrit                             13.32

Underwriting Fee                          500.00

Flood Cert Fee                                 4.00

Prepaid Interest                            432.62

Mtg Insurance                            1,560.00

Settle/Close                                  375.00

Title INS Binder                               75.00

Title Insurance                              421.00

EPA ALTA 8.1                                 75.00

Survey endorse                               50.00

Special Tax Search                         35.00

Insured Closed Protect Lt                35.00

Recording Mtg                                  44.00

Add'l Recording Fee                         72.00

Survey Fee                                     125.00

Courier Fee                                      50.00

Hazard Insurance                            166.68

Summit Co. Taxes                          420.00

Aggregate Adjustment                       41.71 Credit

Total                                              5,960.86

Please note the only out of pocket for me is $350 for the App Free everything else will be rolled into the loan and this also has me getting back 10k at close based on my last appraisal numbers of last year at 110k on the property. I expect the house to appraise for $115k since I remodeled a bathroom, added some new landscaping and vinyl siding.

Message Edited by chartley3 on 05-12-2008 10:08 AM

Message Edited by chartley3 on 05-12-2008 10:10 AM

Message Edited by chartley3 on 05-12-2008 10:19 AM

[DallasLoanGuy]

I hate to comment on rates because I don't know the whole story.

Difficult borrower = higher rate

low loan amount = higher rate

organized/respectful client who bends over backwards to provide everything I ask for = lower rate.

With that said, the lender fees look to be in line for that rate.

if you are omfortable that your loan officer is competent, I would say go for it.

[Anonymous]

That looks like the auto fees called deception fees, oh I mean inception fees. $5000 OMG.

[DallasLoanGuy]

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ilovepizza wrote:
That looks like the auto fees called deception fees, oh I mean inception fees. $5000 OMG.

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Make that $5000 - $1560 mortgage insurance. = 4340

upfront PMI can be financed.

[granny031350]

so the LO can determine the rate charged

higher fees means customer was more difficult

lower fees means customer was better to work with

a little higher rate with less fees equals a better loan????

[DallasLoanGuy]

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granny031350 wrote:

so the LO can determine the rate charged

higher fees means customer was more difficult

lower fees means customer was better to work with

a little higher rate with less fees equals a better loan????

---

a little higher rate with less fees looks good..... but is worse for the borrower in the long run.

your loan officer can offer it to you both ways. and do a cost/breakeven analysis.

yes, the loan officer affects rate..... sure. And while most clients will experience the same fees regardless of who you are.... you better believe that there is an aggravation cost.

Message Edited by DallasLoanGuy on 05-13-2008 11:51 AM