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What is the average closing cost on the house? My mortgage guy quoted us somewhere 9K, what concerns me most is the Title Insurance cost of $3,750.
on 375K mortgage amount. The property is located in CT.
Please advice!
Thank you
pk1700
Hi,
I am an ex loan officer. If your total closing costs are 9K on that size mtg., you are doing ok. I'd love to look at the GFE to see where you might be getting hit for junk fees.
Best of luck to you!
Hi there.
It is not against the rules to call a lender to ask for a good faith estimate based on certain assumptions like purchase price, taxes, middle credit score, etc.
If they give you flack, move on to the next one who will provide you with good customer service, regardless of whether you have an application in or not!
A good rule-of-thumb for closing costs is about 3% of the purchase price, though it can me more or less. The title policy should be a fixed amount and generally your attorney arranges that. You should receive a prelimary estimate of closing costs from the mortgage company, but you must also take in account taxes, escrows, insurance, recording fees, etc.
For a buyer who is tight on cash, I am often able to arrange to get a credit at closing for closing costs. That is generally limited to 3% and will be most likely be offset by your purchase price.
Well you have to break it down into the components. On mine it was the arrears interest, which was a couple hundred since I closed near the end of the month. I did the PMI prepay so that was about $2k. Also, house insurance. There were a few other misc fees and the rest was covered by my credit union. So in all, without the PMI, I paid about $600-700 aside from the downpayment. My GFE from the credit union showed about $2500 for closing fees (not including the arrears interest, house insurance and PMI, and minor misc). This is in SoCal. I believe the title insurance was mostly paid by the seller.
ur mortgage guy is full of squat. Go to quickenloans.com and talk to John Scott....you can close with as little as 500 dollars, maybe even Zero
Nothing is free no matter what way you look at it. Your are still getting charged. It is important to understand what your short-term and long-term goals are. Let me show you what I mean.
For example you can see below, the "no fees" loan that is so wonderful is roughly 7% with no fees, but with fees you can obtain a loan at 6.125%. But you have to understand the purpose and the goals of the individuals in order to place them with the right product. This is why it is important that people find a knowledgeable mortgage broker who understand not just financing, but what meets the clients needs.
This is a real scenario that I am currently doing for a client of mine. Loan Purpose:Refinance With Cashout Loan Amount:$290,000.00 Property Value:$550,000.00 Property Type:SINGLE Property Use:2nd HOME Escrows:INCLUDED Income Documentation:FULL Credit Score:580
30 Year Fixed - Rates accurate on 8-13-2008 Lien--Loan Amount--Rate---APR----Payment----Lender Fees
1st----$290,000----6.125%--6.533%----$1,762-------$12,171
1st----$290,000----6.25%---6.585%----$1,786--------$9,978
1st----$290,000----6.375%--6.641%----$1,809--------$7,919
1st----$290,000----6.5%----6.717%----$1,833--------$6,426
1st----$290,000----6.625%--6.796%----$1,857--------$5,057
1st----$290,000----6.75%---6.873%----$1,881--------$3,616
1st----$290,000----6.875%--6.938%----$1,905--------$1,858
1st----$290,000----7.000%--7.022%----$1,929--------$638
1st----$290,000----7.125%--7.125%----$1,954--------$-433
1st----$290,000----7.5%----7.5%-------$2,028--------$-1,068
Someone also asking about total closing fees, typically they will run about 3.5% of the loan amount, a purchase is more than a refinance as well. And title insurance rates vary depending on state. There are state laws regarding title fees and some regulate the fees. But even in states that aren't typically the title company's follow the other states rates as well, since the insurance company's are still the same insurers.
Last edited by brokerdave; 08-13-2008 at 02:33 PM..
It also looks like you're charging about 2 points for that rate.
Quote:
Originally Posted by brokerdave
Nothing is free no matter what way you look at it. Your are still getting charged. It is important to understand what your short-term and long-term goals are. Let me show you what I mean.
For example you can see below, the "no fees" loan that is so wonderful is roughly 7% with no fees, but with fees you can obtain a loan at 6.125%. But you have to understand the purpose and the goals of the individuals in order to place them with the right product. This is why it is important that people find a knowledgeable mortgage broker who understand not just financing, but what meets the clients needs.
This is a real scenario that I am currently doing for a client of mine. Loan Purpose:Refinance With Cashout Loan Amount:$290,000.00 Property Value:$550,000.00 Property Type:SINGLE Property Use:2nd HOME Escrows:INCLUDED Income Documentation:FULL Credit Score:580
30 Year Fixed - Rates accurate on 8-13-2008
Lien Loan Amount Rate APR Payment Total Payment LenderFees
1st $290,000 6.125% 6.533% $1,762 $1,762 $12,171
It also looks like you're charging about 2 points for that rate.
i know you understand this stuff and it wasn't intended for you. again this was just to show the difference between fee's and rates.
but I can do 80% if it makes you feel better inside and it is a refinance, not a purchase. my markup is 1.44 pts = $4+k. whether you want to decided if thats a lot to charge, you don't know how long or hard i had to work on this deal. it all takes time especially if you are trying to structure a refinance, with people who have multiple properties. running pricing scenarios in different structuring.
perhaps your experience is different? but most of my clients have equity. this particular client owes 92k on a 15 year loan. I am lowering his payment $400 and getting him 190k out of closing. that's the power of referrals and not buying internet leads.
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