topic Re: GFE for USDA Review please. seems excess to me. in Mortgage Loans

GFE for USDA Review please. seems excess to me.

rebuilding — Mon, 20 Apr 2009 14:35:03 GMT

Thanks in Advance for giving this a look over for me.

I am buying a home that I am currently living in as a lease option. Just found out today that I am eligible with the new USDA requirements and this was drawn up before that, but the amounts seem a bit excessive to me. I could be wrong.

Credit scores now: EQ 654 TU 675 EX 623

The house sales price is 103k but I have 2k from rent payments that apply to the purchase price, making the purchase price 101k.

The LO showed the purchase price higher I think to cover the closing costs. The seller agreed to pay closing costs up the 3k.

I did a cut and paste from excel I hope it shows up. (XYZ is the Lender, it lists FXYZ as the Investor) I have changed the company name, but XYZ is the broker, and here he is showing that name as the Lender and his name with an F in front of it as the investor. is this common?

Total loan amount: 105,978

Interest Rate: 5.750% 360mo

ITEMS PAYABLE IN CONNECTION WITH THE LOAN AMOUNT PAID TO

Loan Origination 1% $1,059.78 XYZ

Appraisal Fee: $450.00 Appraiser

Credit Report: $18.08 CRA

Processing Fee: $425.00 XYZ

Underwriting Fee: $675.00 FXYZ

Wire Transfer Fee: $10.00 FXYZ

Administration Fee: $350.00 XYZ

Application Fee: $75.00 XYZ

Flood Certification: $5.00 FXYZ

TITLE CHARGES

Closing/Escrow Fee $275.00 Title Company

Documentation Prep Fee $100.00 Doc Prep Atty

Atty Fees $50.00 Title Atty

Survey: $550.00 Surveyor

Tax Certificates $25.00 Title Co.

TX Guaranty Fee $5.00 State

GOVERNMENT RECORDING & TRANSFER CHARGES:

Recording Fees: $95.00

Express Mail: $30.00

ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE:

Interest (5 days @ 16.927/day $84.63

Mtg Ins. Premium $2,078.00

Hazard Ins. Premium $816.00

RESERVES DEPOSITED WITH LENDER

Hazard Ins. Premium (3 mo @ $68/mo) $204.00

Taxes $ Assessment Reserves (3 mo @ 108.23) $324.69

ESTIMATED PREPAID ITEMS/RESERVERS $3,507.32

TOTAL ESTIMATED SETTLEMENT CHARGES $7,705.18

PURCHASE PRICE $103,900.00

EST. PREPAID ITEMS/RESERVES $1,429.32

EST. CLOSING COSTS $4,197.86

PMI, MIP, FUNDING FEE $2,078.00

LOAN AMOUNT $105,978.00

CC PAID BY SELLER $5,627.18

TOTAL ESTIMATED MONTHLY PAYMENT

PRINCIPAL & INTEREST $618.46

HAZARD INSURANCE $68.00

REAL ESTATE TAXES $108.23

TOTAL MONTHLY PAYMENT $794.69

Re: GFE for USDA Review please. seems excess to me.

SonorityGenius — Mon, 20 Apr 2009 14:56:47 GMT

Well, they are already charging you 1% orig fee.. I found these to be 'junk' or atleast way more than should be:

Processing Fee: $425.00 XYZ

Underwriting Fee: $675.00 FXYZ

Administration Fee: $350.00 XYZ

Application Fee: $75.00 XYZ

Re: GFE for USDA Review please. seems excess to me.

rebuilding — Mon, 20 Apr 2009 15:23:57 GMT

Thanks Sonority, thats kind of what I was thinking, but was not sure what was customary.

Thought it was interesting he wanted to charge me the $18.08 for pulling the credit AND a $75 APP fee...

any other thoughts?

Re: GFE for USDA Review please. seems excess to me.

rebuilding — Mon, 20 Apr 2009 15:24:58 GMT

Oh, what about the MIP? is that necessary with USDA? and how about the 5.75 interest rate?

Re: GFE for USDA Review please. seems excess to me.

SonorityGenius — Mon, 20 Apr 2009 15:42:13 GMT

Based on today's rates you should be able to do better - your scores are above 620 and have sellers paying 5k towards closing as well..

The funding fee is required, and the credit fee is pretty normal (although my broker charged me just 8.80 per person)

I would definately shop around..

Re: GFE for USDA Review please. seems excess to me.

Anonymous — Mon, 20 Apr 2009 15:43:10 GMT

I don't know if USDA is different in some sort of way, but the interest rate seems high to me. I paid 1% discount point and my rate was 4.875%. If the point was buying down your rate it would make the other fees not seem so bad, but given that the interest rate is high and the fees are a bit higher and you are also paying 1% origination, that seems pretyt high to me. The MIP seems fine so long as USDA requires it, don't know anything about USDA.

Re: GFE for USDA Review please. seems excess to me.

Anonymous — Tue, 21 Apr 2009 03:40:35 GMT

I know this can vary area-to-area, but your homeowner/hazard insurance premium seems high to me. I recently purchased one with standard indemnities/deductions, at about 60% your cost for a house appraised 25% higher.

Re: GFE for USDA Review please. seems excess to me.

Anonymous — Tue, 21 Apr 2009 11:23:47 GMT

Definitely shop some more.

The 1% origination fee is common, but not universal. We're paying a fair amount less than that. We also locked in last week at 5% on a USDA loan.

Agree the insurance seems high. That's also worth some serious shopping. I'm paying around the same as you are, but the mortgage amount is $250k and they put replacement cost near $500k. Also, there are no hydrants within an accessible proximity so it ranks pretty poorly from a fire protection standpoint. Insurance quotes ranged from around $850 to over $1500 for comparable coverage.

Re: GFE for USDA Review please. seems excess to me.

Anonymous — Tue, 21 Apr 2009 16:44:41 GMT

The area, size, features and the age of the house have a lot to do with the cost of insurance. May or may not be high, for my area what you are paying would not be considered high. Purchase price/appraisal doesn't play into the cost of the homeowners insurance. Could have inherited the house for free, won't have any impact on the value or replacement cost of the home.

Message Edited by UpUpUp on 04-21-2009 12:44 PM

Re: GFE for USDA Review please. seems excess to me.

rebuilding — Tue, 21 Apr 2009 16:42:49 GMT

thanks for all your responses! once again Myfico family has saved the day and saved me lots of $$!!!

I got a new GFE from another lender (directly from a local bank here) and it is about $1500 less in fees and 5% instead of 5.75%!!

she said if I could get the contract to her today she could lock in the 5% for me.

I will def shop around the insurance that was just a guestimate.

thanks again!

Re: GFE for USDA Review please. seems excess to me.

ShanetheMortgageMan — Wed, 22 Apr 2009 15:50:54 GMT

I think that 1st rate you were quoted of 5.75% was illegal at the time - seems too high. USDA has limits on the interest rate that can be charged.

Re: GFE for USDA Review please. seems excess to me.

Anonymous — Wed, 22 Apr 2009 18:07:41 GMT

Why are you paying private mortgage insurance and this type of loan is not suppose to have that charge. Also, this moring I locked in 4.5% 30 days on USDA.

Re: GFE for USDA Review please. seems excess to me.

ShanetheMortgageMan — Thu, 23 Apr 2009 01:41:38 GMT

@Anonymous wrote:
Why are you paying private mortgage insurance and this type of loan is not suppose to have that charge. Also, this moring I locked in 4.5% 30 days on USDA.

That is the guarantee fee you are referring to.

Re: GFE for USDA Review please. seems excess to me.

WannaHouse — Thu, 23 Apr 2009 02:21:36 GMT

4.5% ???

My broker locked us at 5.25 2 days ago??? Is that a tad high Shane?

Re: GFE for USDA Review please. seems excess to me.

ShanetheMortgageMan — Thu, 23 Apr 2009 02:27:03 GMT

4.5% is a killer deal, most are in the 5-5.25% range.