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GFE . . . . Good deal?

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Anonymous
Not applicable

GFE . . . . Good deal?

Sorry I know I am new so slam me or put me in my place  . . . . . but this GFE doesn’t seem to be a good deal.  Fico score 813 for a FHA loan.  3% YSP?  On myfico.com it says I should be able to get an interest rate of 4.9% with my score.  I know that changes daily, hourly, etc but still?

  

Loan $245, 271

Interest Rate 5.375% 

 

801 Loan Origination Fee              

803 Appraisal Fee                           400.00 

804 Credit Report                              40

810 Processing Fee                         475.00

811 Underwriting Fee                      

525.00813 Courier Fee                       45.00

814 Yield Spread Premium 0-3%     7237.5 

1101 Closing/Escrow Fee                 274.00

1108 Title Insurance                         719.00

1109 8.1 Endorsement Fee               50.00

1110 Title Courier/Edoc                     100.00 

1201 Recording Fees                        35.00 

901 Interest           30 dys@ 36.6502 1099.51

902 Mtg Ins Prem                           4221.88

903 Hazard Ins Prem                        723.72 

1001 Hazard Ins Prem          2mth@60.31  120.62

1004 Taxes & Asses Resrvs 2mths@156.25 312.50 

Estimated prepaid items/reserves $6478.23

Total settlement charges $9141.23

Total Estimated Funds needed to close – $13,670.23

 

  

Mortgage Neophyte

 
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: GFE . . . . Good deal?

 I guess I should also include that while I realize there is no origination fee of 1% included in this GFE and I think 2% is normal for a YSP.  So 3% YSP should be reasonable expect . . .my interest rate is 5.375?  On myfico.com it said I am in the top 10% of the nation and I should be able to get an interest rate of 4.9%.  I know this changes daily, hourly, etc.  But I checked it last night before I received the GFE and I checked myfico.com again this morning after I received the GFE and it still says 4.9%.  I know the internet the papers, everything cant keep up with the changing interest rates . . .. then how do I know I am getting a good interest rate when there is no way for me to check?
Message 2 of 6
DallasLoanGuy
Super Contributor

Re: GFE . . . . Good deal?

1. I don't put much faith in those lists that say you will get ABC rate with XYZ fico

2. How do you know a good rate? You come here and ask.

 

the fees are low in the 800s section. If nothing has been left off.... you are doing outstanding there.

 

how long do you plan on staying in the home? paying origination fee is a good idea if you stay beyond 5yrs.

 

 what is the loan amount? about $240K?!?!?!?

 

5.375% is paying closer to 2% ysp today. was paying more. when did you get the quote? might have been 3%ish yesterday

 

you should be able to lower your rate by  .25% by paying 1% origination. that would be a great value

 

 

 

Retired Lender
Message 3 of 6
Anonymous
Not applicable

Re: GFE . . . . Good deal?

Purchase price is for 250,000 but loan amount is for 245,471.

 

Got the quote via e-mail at 6:32AM this morning (pacific time)

 

Not sure how long I will be in the home could be less than 5 years or could be more.  My boyfriend owns a home now which he bought when the market was a bubble so we may keep both or sell mine if the market goes up.  Not counting on it though!

 

So we have a meeting to review this GFE on Tuesday of next week.  I know the numbers will be out of date by then I just want him to walk me through his fees and process.  I don’t plan on taking too much of his time. 

 

So Dallas you think 3% is ok with now origination fee and the 5.375% is reasonable if I got this with 24 hours?

 

I realize myfico.com is not a magic 8 ball for interest rates I just want to be educated more so I am not so darn paranoid!

 

PS Dallas I don’t understand your commit “240,000?!?!??!?” is that too much too little?  Did you just not know what my loan was?  I am confused?

Message 4 of 6
DallasLoanGuy
Super Contributor

Re: GFE . . . . Good deal?

i was asking how much the loan amount was.... off the top of my head i was guessing 240ish

 

if the fees in the 800s section dont change then 5.375% is a good deal. make hhe rest of the fees are not controlled by the lender. they are third party fees.

im honor that.

 

unless you stay beyond 3-5yrs and then the extra interest is more than the origination fee would have been.

 

 the gfe says 0 - 3%(reads zero to three) that is a range. they may or may not get all 3% depending on the rates the day you lock.

 

i think 3% is about right for a 0% origination deal with low fees since another lender would have higher fees.. fees and rate have a direct coorelation.

if fees go up then 3% would be out of line

 

 

Retired Lender
Message 5 of 6
Anonymous
Not applicable

Re: GFE . . . . Good deal?

ok thanks!
Message 6 of 6
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