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First time home buyer here and I need some help. I do not understand why I would have to pay so much at closing. The way I understand it right now is that I would have to pay 3.5% of my loan for down payment PLUS the settlement charges listed below which I estimate to be a grand total of about 17000.00. Am I right? I hope that I have this wrong. I was expecting to pay no more than about 8000 at closing...PLeeeeease help me!!!!
Purchase amount 160000
Loan amount 157102.00
Origination Charge 2534
Appraisal Fee 425
Tax Service 70
Flood Certification 10
Residential Mortgage Fee 10
Prepaid Interest 15 days 266.32
Mortgage Insurance Premium 2702
Title Services 665
Appraisal Final Inspection 150
First Year Homeowners Insurance for 12 months 864
Homeowners insurance 3 months 216
Taxes 5 months 662.75
Title Services 560
Owners Title insurance 640
Recording fees 60
Transfer taxes 480
City/County Tax/Stamps 160
TOTAL ESTIMATED SETTLEMENT CHARGES 10,475.07
This probably varies by area - but your origination charge looks pretty high. I would shop around. You don't have to stick with the lender unless you've signed intent to proceed. But you get the good faith estimate before signing so you know if you want to shop around.
Also if your seller agreed to pay 3% close costs (standard in my area) many of those fees will be covered by that - would be 4800 in your case. If you close closer to end of month will save you about $200. And your home insurance premium looks high for your home value - unless you're in a high risk area. If you shop around could probably lower that $200.
Part of what's driving up your costs is that they're escrowing so many months of insurance and taxes instead of just 3.
I would shop around more, the origination fee looks really high.
@Anonymous wrote:First time home buyer here and I need some help. I do not understand why I would have to pay so much at closing. The way I understand it right now is that I would have to pay 3.5% of my loan for down payment PLUS the settlement charges listed below which I estimate to be a grand total of about 17000.00. Am I right? I hope that I have this wrong. I was expecting to pay no more than about 8000 at closing...PLeeeeease help me!!!!
Purchase amount 160000
Loan amount 157102.00
Origination Charge 2534
Appraisal Fee 425
Tax Service 70
Flood Certification 10
Residential Mortgage Fee 10
Prepaid Interest 15 days 266.32
Mortgage Insurance Premium 2702
Title Services 665
Appraisal Final Inspection 150
First Year Homeowners Insurance for 12 months 864
Homeowners insurance 3 months 216
Taxes 5 months 662.75
Title Services 560
Owners Title insurance 640
Recording fees 60
Transfer taxes 480
City/County Tax/Stamps 160
TOTAL ESTIMATED SETTLEMENT CHARGES 10,475.07
Couple of other items:
Everything else looks in line to me.
I have title insurance twice on my GFE as well. One is the Banks title insurance and the other is my personal title insurance. (Foreclosure.)
Origination has a lot of factors as Starting pointed out. My Origination fees were $300. 0 points.
We had a final appraisal fee. $150 to make sure the owner completed the work.