Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You're making a common mistake with your assumption.
In real estate, many (most) of the fees are fixed, regardless of sales price. Your appraisal will be the same at 500K as 92K, your real estate transaction fee also the same. In fact, you could be paying a penalty for a low loan amount in your points and title insurance. Most lenders depend upon making $x to pay their expenses. The low loan amount gets what we call an add-on to make the loan cost effective. Otherwise, you would have lenders saying "no loans under." You are also obtaining a 203K, which automatically carries additional fees.
Your fees are in line. I know it smacks unfairness that if your loan amount were 300K, it would only be a few dollars more, but remember you won't have the payment of a higher mortgage.
Wait a second...nobody can say whether those fees are in line or not without knowing what interest rate you are getting.
Mortgage rates are like everything else you buy, the more you pay in costs, the lower the interest rate should be. the less you pay, the higher the rate.
Those are not "typical" because you are obtaining a 203K and not a 203B. You are asking the lender to take a higher risk that the house will be better in the future than it is right now, so they charge you more in case you don't fix it up and you foreclose. They're then stuck with an unfixed up house that they have to resell.
Is there any way you can buy it without a 203k loan? This would really reduce the closing costs. You would just fix it on your own. 203k's are a nightmare to finish.
Yes, you should trust your gut. They are too high! The first question I would ask is why you are having to pay a discount fee at 4%. Also, the origination charge which should equate to the lender fees seem about 200-300 higher than the average. The other fees seem inline depending on which state you are in, however, I've never seen the RE Agent Conveyancing/Broker Fee: 400.00 charged to the buyer, this is a Junk fee, why would you pay your RE Agent $400 when they are already making 3% on the deal from the seller. The actual conveyancing is done by the Title company and already in their fees. Also your escrow account seems high as well for this size of home. The seller will be responsible for paying the property taxes to date, so your escrow account should only include a couple months of Taxes and Insurance to get started.
So yes trust your gut, in my opinion your fees are too high. Address the fees I have mentioned and good luck on buying your home.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Interest Rate
