topic Re: Estimated Closing Cost Help in Mortgage Loans

Estimated Closing Cost Help

Anonymous — Fri, 25 Jan 2013 23:31:31 GMT

Hello I just received an estimated closing costs from NFCU on my preapproval letter. They seem really high and I am wondering if they are high or normal. I know these are estimates and not a GFE etc but if they are high I wonder if I should look for a new lender. Here is a breakdown of what they said: Thanks

Loan Amount $506,625

Interest Rate 3%

San Diego, Ca

Origination Fee	$5,066.25
Discount Fee	$1,266.56
Appraisal Fee	$525.00
Credit Report	$22.00
Flood Determination Fee	$7.00
Tax setup fee	$5.00
Prepaid Interest	$957.73
MTG Insurance Premium	$8,865.94
Hazard Insurance Premium	$1,671.86
Settlement Fee	$2,795.00
Owners Title Insurance	$1,474.75
Title Insurance	$1,173.61
Recording Deed	$62.00
Transfer Stamps	$577.50
Pest Inspect Fee	$200.00
Total W/O Escrows	$24,670.20

2 Mos Hazard Insurance	$278.64
5 Mos County Property taxes	$2,433.60
Escrow Total	$2,712.24
Total	$27,382.44

Re: Estimated Closing Cost Help

p- — Fri, 25 Jan 2013 23:52:45 GMT

@Anonymous wrote:
Hello I just received an estimated closing costs from NFCU on my preapproval letter. They seem really high and I am wondering if they are high or normal. I know these are estimates and not a GFE etc but if they are high I wonder if I should look for a new lender. Here is a breakdown of what they said: Thanks

Loan Amount $506,625
Interest Rate 3%
San Diego, Ca
Origination Fee $5,066.25
Discount Fee $1,266.56
Appraisal Fee $525.00
Credit Report $22.00
Flood Determination Fee $7.00
Tax setup fee $5.00
Prepaid Interest $957.73
MTG Insurance Premium $8,865.94
Hazard Insurance Premium $1,671.86
Settlement Fee $2,795.00
Owners Title Insurance $1,474.75
Title Insurance $1,173.61
Recording Deed $62.00
Transfer Stamps $577.50
Pest Inspect Fee $200.00
Total W/O Escrows $24,670.20

2 Mos Hazard Insurance $278.64
5 Mos County Property taxes $2,433.60
Escrow Total $2,712.24
Total $27,382.44

Well, a couple of things jump out;

First off, the Escrow total won't change, as property tax rates are what they are. Your MIP is over a third of the remaining, which is fixed no matter who your broker is as long as you're going with the FHA. You're paying a 1200 dollar discount fee, so I'm guessing you're buying down points which is why you are at 3%.

The origination fee looks like a flat 1%. You might be able to do something about the settlement fee by choosing another title company. It looks like you're paying title insurance for yourself and for the seller, which presumably was negotiated by your agent. Almost a thousant is prepaid interest, out of your control.

I don't know how much your Hazard insurance should cost or who provides it.

Re: Estimated Closing Cost Help

Anonymous — Sat, 26 Jan 2013 00:31:35 GMT

Personally the fees are reasonable (maybe a little high), but you can do better

In my opinion I would make a few comparisons.

Banks, Credit Unions do not have to disclose all the cost such as the Yield Spread Premium you are paying.

Re: Estimated Closing Cost Help

DallasLoanGuy — Sat, 26 Jan 2013 04:34:30 GMT

thats a pretty low rate..... which requires a full fee deal.

if you plan to stay there a long time, this is a good long term strategy.

a little higher rate will afford you some concessions on the costs.... a good short term strategy if you don't plan to stay in the loan very long

Re: Estimated Closing Cost Help

Anonymous — Mon, 28 Jan 2013 04:55:35 GMT

I wanted to thank everyone for their replies.