Outrageous GFE!? Please help me understand this..

[blahblahblaj]

Ok I have a middle score of 731 and my wifes middle is 764. We finally found a home we love so we offered 265,000 and began a 45 day escrow last week. I instantly started bugging our lender for a good faith and he finally emailed it to us, now Ive been paying attention to the Ca. average for 2 months now and i know recently its been near 3.4-3.5 or so, well to my utter SHOCK the lender is charging us 2k in points to "lock in" 3.75!! HUH??!! We have very good credit!? The good faith also lists roughly 7k in fees and closing costs, does this sound right? Its our first home and we are doing a conventional with 20% down.
We were pre-approved by 3 lenders but our agent highly recommended using this company and staying away from the internet lenders, I dont know if we can afford this it seems outrageous to us compared to what we expected.

[beb86]

is that the interest rate or the APR??

[blahblahblaj]

Not sure, this is how it is written "CONVENTIONAL 30 YEAR FIXED in the amount of 212,000, in 360 payments at the initial rate of 3.750%"

[MainMan]

Our rate is 3.75 but we aren't being charged any points. And my scores are much lower than yours but we are going FHA. There has got to be a better rate than that. But keep in mind that the GFE is just an estimate and you have not locked in your rate. So that rate isn't what your rate is going to be just yet. Talk to your LO and tell him either get you a lower rate or your headed for the door. You can def get a MUCH better rate.

[DallasLoanGuy]

fha rates are lower than conventional right now

how much of these 'fees' are origination charges?  <= i dont want to hear about other fees..... they are the same lender by lender and only estimates.

the lender controls 'origination charges' and rate

i saw 3.75% cost 1/2 point to lock today..... but that is just the origination(points) charges..... it doesnt include other bank fees

[blahblahblaj]

Well the "Credit or charge (points)" is $1,855.00

Processing fee is 495

Underwriting fee is 595

AMC fee to solidifi is 110

Theres a bunch more fees but im assuming this is what your after? Like I said its our first home so im learning as i go.

[tooleman694]

3.75 with conventional sounds good to me, we got a 3.75 with FHA with a negative point.

[prince1969]

Negative points is usually a higher interest rate in order to have lower closing costs.

[tooleman694]

If I wanted the lower rate they were going to charge me like a 1000 bucks.

I had 2 options, pay 1000 or get 1000. I took the 1000 bucks and the 3.75 and smiled all the way to closing.

[foofighter74]

3.75 is high with those credit scores, OP...at least, it would be here in Central New York.  The rate for our lender with a 740 mid-score (your'e nearly there) is 3.375 on a 30 year conventional rate paying .5 point. 

FHA with our lender right now is 3%.