Good Faith Estimate

juice · ‎04-02-2014

I recieved a GFE from CITI today can someone chime in and tell me if this is a good deal or not my middle credit scrore is 655.

ANNUAL PERECENTAGE RATE 5.471e%

FINANCE CHARGE $153,215.94e

AMOUNT FINANCED $154,245.57e

TOTAL OF PAYMENTS $307,461.51e

INTEREST RATE 4.000%

PRINCIPLE + INTEREST PAYMENT $750.03

EST TAXES + INSURANCE (ESCROW) $416.61

ORGINATION CHARE $715

CREDIT OF $-1,351.00 FOR RATE OF 4.000

TITLE SERVICES AND LENDER'S TITLE INSURANCE $1,290

OWNER TITLE INSURANCE $1,407.50

GOVERMENT RECORDING CHARGES $359.00

TRANSFER TAXES $640.50

INITIAL DEPOSIT FOR ESCROW AMOUNT $1,324

HAZARD INSURANCE $560.00

StartingOver10 · ‎04-02-2014

There is one interesting thing I see right away: You show a credit toward your closing costs of $1,351 from the lender to get a rate of 4%.

Have you asked the lender what your rate would be if you were to not have the credit? I would think that it would be lower than 4%. Find out from your LO if that is an option for you.

juice · ‎04-02-2014

Thank you for replying i thought the -1,351.00 was like paying points for the 4% apr. The whole box reads "You receive a credit of $-1,351.00 for this interest rate of 4.000%. This credit reduces your settlement charges. But i will defenitly call tommorrow and ask.

@StartingOver10 wrote:
There is one interesting thing I see right away: You show a credit toward your closing costs of $1,351 from the lender to get a rate of 4%.

Have you asked the lender what your rate would be if you were to not have the credit? I would think that it would be lower than 4%. Find out from your LO if that is an option for you.

StartingOver10 · ‎04-02-2014

It is like paying points, except instead of paying points you are getting a credit in exchange for paying a higher interest rate for the loan term.

That's why its a good idea to ask the LO what your rate would be if you didn't get the credit. Of course, that means you will have to bring in the $1351 to closing. So figure out which is best for you - getting a lower rate or having lower closing costs.

ezdriver · ‎04-02-2014

@juice wrote:
Thank you for replying i thought the -1,351.00 was like paying points for the 4% apr. The whole box reads "You receive a credit of $-1,351.00 for this interest rate of 4.000%. This credit reduces your settlement charges. But i will defenitly call tommorrow and ask.
@StartingOver10 wrote:
There is one interesting thing I see right away: You show a credit toward your closing costs of $1,351 from the lender to get a rate of 4%.

Have you asked the lender what your rate would be if you were to not have the credit? I would think that it would be lower than 4%. Find out from your LO if that is an option for you.

Actually, it is the opposite. You are GETTING some cash but it is costing you a higher rate. Thinks of it as financing that $1,351 in your mortgage and paying for it for the life of the loan. It is ok to ask your loan officer to explain every line item to you.

FSFdoppleganger · ‎04-03-2014

@juice wrote:
I recieved a GFE from CITI today can someone chime in and tell me if this is a good deal or not my middle credit scrore is 655.

ANNUAL PERECENTAGE RATE 5.471e%
FINANCE CHARGE $153,215.94e
AMOUNT FINANCED $154,245.57e
TOTAL OF PAYMENTS $307,461.51e
INTEREST RATE 4.000%
PRINCIPLE + INTEREST PAYMENT $750.03
EST TAXES + INSURANCE (ESCROW) $416.61

ORGINATION CHARE $715
CREDIT OF $-1,351.00 FOR RATE OF 4.000
TITLE SERVICES AND LENDER'S TITLE INSURANCE $1,290
OWNER TITLE INSURANCE $1,407.50
GOVERMENT RECORDING CHARGES $359.00
TRANSFER TAXES $640.50
INITIAL DEPOSIT FOR ESCROW AMOUNT $1,324
HAZARD INSURANCE $560.00

Congratulations for getting that rate with that kind of middle score. If I may ask what bank are you using? I think I was to quick to post, I see your using CITI. Great rate!!!

Starting Score: TU 627 EQ 640 EX 641
Current Score: TU 730 EQ 758 EX 766
Goal Score: TU 750 EQ 800 EX 800
Lender Pull 4/7/14: TU 716 EQ 747 EX 760
"Whatever the mind of men can conceive and believe, it can achieve". Napoleon Hill

UTloanofficer · ‎04-03-2014

What kind of loan are you applying for (Conventional, VA, FHA?), and is this a 30 or 15 year fixed rate, or an ARM loan (5/1,7/1 or 10/1). Your credit score on a government loan does not affect you as much as it would on a Conventional.

I'm confused on why the APR is 5.471% when the interest rate is 4%.. that's a huge difference.

jhutt50 · ‎04-04-2014

I would venture to guess this this an FHA loan based on the high APR. The APR will include the FHA UFMIP and MIP.

juice · ‎04-04-2014

Yes it's a FHA loan.

juice · ‎04-09-2014

Can i bother you guys with one more question? I'm full approved in contract but the seller realetor told me about usda loan that the area is eligible for is this a better loan then the fha one that i posted before?