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I am using the builder’s mortgage company, so i can get some incentives, but i am not sure is this costs are reasonable? the house is 380,000. 0% down. i have good credit 798.748,702. i am getting a rate of 6.59 30 year fixed interest only(10 years) and second mortgage 8.75% with a ballon payment.

Loan Origination Fee: (1%) $ 3051.90
Appraisal Fee: $ 400.00
Credit Report Fee: $ 36.00
Underwriting fee 600.00
Broker Processing Fee: $ 475.00
Tax Related Service Fee: $ 78.00
Lender Document Preparation Fee $ 175.00
Courier Fee: $ 20
Flood Certif: $ 15.00
Other Financial closing costs $ 1,200.00
total 9,213.62

plus 3,247 reserves deposited with lender.

Title Charges:
Closing/Escrow Fee: $ 150.00
Doc Prep Fee: $ 70.00
Title Insurance: $ 1474.00
Endorsements Est.: $ 100.00

Recording Fee: 95.00

Estimated Closing Cost: $ 8,325.00

Is this right? It sure seems a little high! The loan amount is 470k. Thanks!

7 Thoughts on are my Closing costs too high? sacramento, ca?
  1. Reply
    zyberianwarrior
    May 1, 2011 at 12:34 am

    thats about right but go to Ditech get a 30 year fixed and get rid of that baloon bs.

  2. Reply
    CAS
    May 1, 2011 at 12:40 am

    It all seems very standard not unreasonable. However, Title insurance is usually paid by the seller check into that one.
    Congratulations on your new home purchase..; }

  3. Reply
    beg f
    May 1, 2011 at 1:18 am
  4. Reply
    Goldenbearloan.com
    May 1, 2011 at 2:12 am

    In today’s market most Builder’s are paying the closing costs? Seems wierd. If you want you can send me a copy of your GFE or Hud-1 Statement. I live in the Sacramento Area. But for the price your paying for the house the closing cost seem reasonable. Would like to hear the whole story first.

  5. Reply
    sarahglian
    May 1, 2011 at 2:33 am

    Hi,

    I am a loan officer for a Direct Lender through Fannie Mae. First off make sure they are a direct lender not a broker. Are you buying a new home or refinancing, and if you are financing a first and a second are you going 100% into the equity, and piggy backing the loan? This seems a little odd to do both but once a gain it depends on the equity and whether or not this is a refinance or new purchase.

    The first thing I want to address is your rate your rate for loan amount, is high espically for an interest only. Secondly why are you doing an interest only loan? That is just like paying rent for where you live. You will never be paying on the principal balance of your home and your are going to waste 100’s of thousands. Why did you say 30 year fixed and in () 10 years only…… is this only fixed for 10 years?

    Your second is actually a good rate seconds are always going to be high in the 10% range. However, a ballon payment is not a good option unless you intend to keep the mortgage for a short period of time. Its better for you to get into a 20 year fixed 2nd. If it is a ballon payment than the chances are it is an interest only or and adjustable which is not good espcially the way rate are going.

    Now one more thing about the first rates are done in quaters 6.50, 6.125 ect…… not 6.59 so I would question that, and the high rate i did a loan the other for someone with a 720 and they got a 6.25% so it diffently seems high.

    As for the clsoing cost they seem low, each loan you do will have closing cost. 1% is understandable but for a first a loan is usually 1.5 points to 2 points. One 1 point seems low. Espcially if this is going to include both loans. Also 2nds usually have higher points in the neighborhood of 2 to 3 points.

    Apprasial fee is always an out of pocket expense (at least for us) in california it normally runs 440. It looks like you are going with a broker not a direct lender so be very wary there because they only give quotes they dont give underwritten approvals. I would be interested in seeing your good faith estimate they arent being honest. All closing cost should be spelled out to you so the ones listed with other, seems like they arent give you the a clear pictures. Also 1 point for two loans not likely to happen.

    If you want more information or would like me to take a look at your options I would be more than happy to do so. My work number is 1-800-496-4850 ext 253 and you can email on my personal email [email protected] (i dont want to give out my work email on a message board it has my first and last name. )

    Good Luck, I hope I helped you.

    Sarah

  6. Reply
    Plain Jane
    May 1, 2011 at 2:55 am

    I used to work for a Title and Escrow Company for 30 plus years.
    I don’t think your figures look bad at all.
    My Daughter refinanced her house for $ 350,000. using a Mortgage Broker and that fee alone was just over $ 12,000.00. Of course her Credit score wasn’t as good as yours.

  7. Reply
    walkinandrockin
    May 1, 2011 at 3:23 am

    The figures are pretty decent, but probably you could beat them by a little if you shopped it. If you are generally happy with your broker, go for it. I am confused by your loan amount though 1% origination of $ 380K is $ 3800 (not $ 3051.90), or is it at $ 470K loan amount??? If you shopped and got a lower rate, the builder would not give concessions – many times paid for by the lender in one form or another, so they generally have to charge a bit more in rate.

    Brokers usually have better selection of products and more often than not, better pricing than the bankers, though not always the case.

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