Hi guys, I'm getting a mortgage on an investment property (single family home) that I currently own debt-free. I estimate its value at $175,000, and I'm looking to keep my total monthly payment at $750. I received a cost estimate from a broker, and wanted to see if the costs are fair. I have more detailed information but essentially the loan is for $113,750 with the following expenses:
1. $0 - Loan Origination Fee
1. $420 - 30 days prepaid interest
2. $490 - Appraisal Fee
3. $550 - Settlement/Escrow
4. $450 - Title Insurance
5. $595 - Processing Fee
6. $775 - Underwriting Fee
7. $200 - Loan Documents
8. $100 - Recording
9. $150 - Closing Signor
As I already own the property, I will not need the Settlement/Escrow and Title Insurance fees. But Essentially I am paying $3,730 on a $113,750 mortgage. Is this high for an investment property? He says that the Loan Origination Fee is $0, but he is just making his money on the processing/doc fees.
Any information is greatly appreciated. Thank you!
