My closing cost is $ 10, 000! Wow

[J_G]

Does this seem normal I refuse to pay that much! We found a house and they countered our offer with full price $359, 950 plus closing cost of 10k! LO says my payment will be over 2550.00 a month and that seems high because when I first looked at the numbers with him going FHA route it was over 2500 and now going USDA and it is 2500 this doesn't sound right? Please help thanks

[ShanetheMortgageMan]

That is entirely possible.  You have lender fees, title/escrow fees, title insurance, recording fees, and in some areas there is a transfer tax you have to pay. 

FHA has a 1.75% upfront mortgage insurance premium & USDA has a 2% guarantee fee - are you calculating those amounts in your closing costs?  Both of those are usually financed into the new loan amount instead of paid out of pocket.

Did you get a breakdown of the closing costs?  If so, how do they break down?

[StartingOver10]

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@J_G wrote:

Does this seem normal I refuse to pay that much! We found a house and they countered our offer with full price $359, 950 plus closing cost of 10k! LO says my payment will be over 2550.00 a month and that seems high because when I first looked at the numbers with him going FHA route it was over 2500 and now going USDA and it is 2500 this doesn't sound right? Please help thanks

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^^^What do you mean "plus closing cost of $10k"? Did the seller actually put that in the counter offer - or did they just counter with full price and no contribution toward buyer's closing costs?

Did you get your itemized closing cost worksheet from your lender yet (or GFE*)? If so, post the figures here.

*edit for typo

**look under the stickies at the head of this forum to learn how to read a GFE

[basballguy]

2500 seems fair t o me.  I'm almost 2300 with 4.375 on a 290kish loan. 

[J_G]

They countered with full price and 2500 twards closing. So if that is in fact part of the USDA 2% then that seems ok but LO didn't make it sound like the 7500 would go towards that he talked about it going to taxes, insurance and other loan fees.  That's what I'm worried about if I except and then they tell me at closing I need to come up with another 2% for USDA that would suck because I still need to buy a washer dryer fridge and I don't want to go into a new home broke 

[StartingOver10]

J_G, the closing costs can be more closely estimated now that you have an actual house with known taxes and insurance figures (HOA figures too if applicable).

Make sure your LO gets you the figures now before you accept the counter (if you haven't done so).

Closing costs + pre-paid expenses include escrows and fees (including that 2% fee you reference from USDA). The GFE is supposed to give you enough info to know how much to bring - but it is an estimate. Some LO's are better than others with their estimates. The good LO's are pretty much bang on within $100 or so from what I have seen - as long as there aren't any surprises from a third party (title co charges for example).

The $2500 helps you. The $10k estimate is probably close (less the $2500 seller contribution) to what it will be for a $250k house, but we don't know without looking at your figures if they are inline or not.

[fot1]

My house was $165 k, I put $20 k into closing with a payment of $1000 a month, so that sounds about right..

[Peter1142]

My closing.costs were $18, 000 (not including UFMIP) and monthly payment of $2050 on a $235k loan.

[StartingOver10]

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@Peter1142 wrote:
My closing.costs were $18, 000 (not including UFMIP) and monthly payment of $2050 on a $235k loan.

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^^Peter, did that include the balance of your down payment? If not, it sounds high unless you are in a HOA/condo association or have high taxes and insurance.

[Peter1142]

No it did not. It is NY, in a county with pre-paid taxes, so I had to reimburse the seller for taxes as well. The taxes/escrow alone were like $8k. Thankfully I also had some lender credits to help a little.

Other big ticket items included $1k for a bank attorney/settlement agent, and $3k in transfer taxes and state fees.