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Old 11-15-2012, 08:46 PM
 
132 posts, read 1,274,063 times
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The total numbers seem very high to me but I don't know anything about mortgages, I just had a thought in my head that it's typically about 3% of the purchase price. Maybe the FHA Up Front Mtg Insurance payment is throwing me off? The top part is the information from the "Uniform Residential Loan Application" (up to the $10,676.38 cash due line) and the second part is the "Itemization of Settlement Charges".

What exactly due on the day of closing...the $10,676.38? Or $6924.31 (the total closing charges to the Buyer)? Why is there a PMI, MPI, Funding Fee listed at $4,897.38 and then again at $4,897.00 but this time financed?

Anything else that doesn't look quite right? Thanks for any help.

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Old 11-15-2012, 10:43 PM
 
132 posts, read 1,274,063 times
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The more I look over this paperwork, the more it confuses me.

From what I've read online, you can either pay the upfront MIP at closing or it can be rolled into the mortgage. On my application, it's both listed as a cost to be paid in cash at closing and then also listed as something that is rolled into the mortgage.

Can anyone give some insight on that?

Last edited by SelfEmployed75; 11-15-2012 at 11:59 PM..
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Old 11-15-2012, 11:28 PM
 
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Everything looks OK. You would owe $10,676 at closing.

This 10,676 is basically your 3.5% down payment, minus your 1,500 deposit, plus the closing costs of yours (not counting the MIP stuff) that are listed out on the borrower's column.

So .035*290000 - 1500 + (350+35+100+11+145+2175-1160+318+53) = 10,676.


You are not being charged twice for the MIP stuff, even if it looks that way. They just end up grouping things together differently at different points in the spreadsheet.
For example, lines 2 through 4 are various costs on top of the loan:
2582 + 7003 + 4897 = 14483 (ignore rounding).... which is the same as the total borrower and seller closing charges at the bottom:
6924 + 7559 = 14483
It would appear that 2582 number comes from all your "prepaids" (which in some minds aren't true closing costs), so 3 months insurance + 9 months property tax + 30 days interest + hazard premium + HOA dues - escrow balance:
145 + 2175 + 790 + 580 + 53 - 1160 = 2582.
7003 is everything else on there (i.e., real closing costs) except the MIP:
2799 + 12 + 450 + 425 + 350 + 35 + 58 + 14 + 100 + 1912 + 466 + 65 + 318 = 7003


What you should be thankful for (or potentially worried about?) is that transfer taxes don't show up anywhere. It depends on where you live, so if you don't have any, that's awesome. They can be a significant expense.
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Old 11-15-2012, 11:54 PM
 
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Thank you for breaking that down so well! It was like reading another language. So then the MIP is not paid in cash at closing, but is actually rolled into the loan? That is what was confusing me...in searches on Google, I thought it said that it's paid up front at the time of closing.

Arizona actually does have a transfer fee of...$2! I see that some places are as high as 2%!

Real Estate Transfer Taxes
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Old 11-16-2012, 09:19 AM
 
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Quote:
Originally Posted by SelfEmployed75 View Post
So then the MIP is not paid in cash at closing, but is actually rolled into the loan? That is what was confusing me...in searches on Google, I thought it said that it's paid up front at the time of closing.
You can do either. Obviously, if you roll it in, you are really paying 2 PMI components with each monthly bill - one is hidden in the P+I portion of the loan, and one is a separate line item, so instead of PITI you get PITIP (my term, lol).
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Old 11-19-2012, 12:40 PM
 
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The MIP information gets confusing because HUD requires the money upfront. However, your lender can roll that amount into your loan. So you are paying your MIP in monthly installements to your lender despite the fact that HUD is still getting paid upfront by your lender.
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Old 11-27-2012, 01:23 AM
 
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Wow, are they charging you a point?? What rate did they offer. Even if the seller is "paying" it, you are paying it, because it's inside the price.

What is the rate they offered?
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Old 11-27-2012, 11:38 AM
 
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There appears to be a 1% Origination Fee, but no actual discount points.
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Old 11-27-2012, 08:45 PM
 
132 posts, read 1,274,063 times
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Quote:
Originally Posted by Pfhtex View Post
Wow, are they charging you a point?? What rate did they offer. Even if the seller is "paying" it, you are paying it, because it's inside the price.

What is the rate they offered?
3.375% if the loan closed now. Thy of course can't guarantee a rate as the house is scheduled to be ready/close in June. As was pointed out, it's a 1% origination point and no discount points.

Loan numbers look pretty solid, now it's just a matter of if I can get approved because of being self employed. An underwriter on another website told me that they won't take this year's wages/earnings into account since there are no filed taxes to prove the numbers and they will only use 2010 and 2011. I'm hoping that since we are so close to the end of the year, they can either put it on a short hold or approve contingent on 2012 tax return. Any thoughts on that?
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Old 11-28-2012, 12:43 AM
 
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You're getting a mortgage now for a house that's not closing for 7 months?

(N/M I saw the other thread)
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