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Old 02-24-2009, 12:21 PM
 
9 posts, read 15,768 times
Reputation: 12

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I am posting a friend's GFE. Rate seems high to me. Does anyone have any thoughts about this GFE?

Rate locked in last week for 5.5% Term 30 years
800 ITEMS PAYABLE IN CONNECTION WITH LOAN
$ 1,158.13 Loan Origination .625%
$ 470.20 Loan Discount .250%
$ 420.00 Appraisal
$ 850.00 Lender Fee
$ 105.00 Tax Service
$ 26.00 Flood Check Fee

900 ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE
$ 28.34 1 Days Interest @ $ 28.34 /Day
$ 2,779.50 Conventional PMI/FHA Up-front MIP/VA Funding Fee Financed $ 2,779.00

1000 RESERVES DEPOSITED WITH LENDER
$ 1,942..10 Taxes 5 Months @ $ 388.42 /month

1100 TITLE CHARGES
$ 300.00 Closing or Escrow Fee
$ 150.00 Document Preparation
$ 1,418.00 Title Insurance
$ 225.00 Title Insurance Endorsement
$ 65.00 Title Tax Cert
$ 30.00 Courier/Express Mail

1200 GOVERNMENT RECORDING & TRANSFER CHARGES
$ 120.00 Recording Fees


$ 9,536.27 TOTAL ESTIMATED BORROWER SETTLEMENT CHARGES

TOTAL ESTIMATED FUNDS NEEDED TO CLOSE:
$ 4,786.33 Estimated Closing Costs
$ 4,749.94 Estimated Prepaid Items/Reserves
$ (2,779.00) Financed PMI/Funding

$6,757.27 TOTAL



TOTAL ESTIMATED MONTHLY PAYMENT

$1,067.89 Principal and Interest
$388.42 Taxes
$76.74 Mortgage Insurance

$1,533.05 TOTAL MONTHLY PAYMENT

If she has locked in her rate, but has not signed any paperwork, does she have the option to choose another mortgage lender? She has already paid for the appraisal but it has not been done yet. Thanks in advance for the guidance.

K
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Old 02-24-2009, 01:10 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
Reputation: 952
5.5% is about standard for a FHA loan today. However it should not cost a 0.25% discount point to get that 5.5%. The UFMIP is standard as well. Title insurance seem high to me, but different locations incur different charges and being that it is a third party fee the LO absolutely cannot upcharge that. It's possible that the LO is quoting high on the costs so there are no surprises.

She is not obligated to any lender until she signs the closing package (not recission on a purchase). If this is a refinance then she will actually have until 3 business days after signing to rescind.
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Old 02-24-2009, 02:29 PM
 
3,583 posts, read 10,242,083 times
Reputation: 5096
Quote:
Originally Posted by kqstiger View Post
I am posting a friend's GFE. Rate seems high to me. Does anyone have any thoughts about this GFE?

Rate locked in last week for 5.5% Term 30 years
800 ITEMS PAYABLE IN CONNECTION WITH LOAN
$ 1,158.13 Loan Origination .625%
$ 470.20 Loan Discount .250%
$ 420.00 Appraisal
$ 850.00 Lender Fee
$ 105.00 Tax Service
$ 26.00 Flood Check Fee

900 ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE
$ 28.34 1 Days Interest @ $ 28.34 /Day
$ 2,779.50 Conventional PMI/FHA Up-front MIP/VA Funding Fee Financed $ 2,779.00

1000 RESERVES DEPOSITED WITH LENDER
$ 1,942..10 Taxes 5 Months @ $ 388.42 /month

1100 TITLE CHARGES
$ 300.00 Closing or Escrow Fee
$ 150.00 Document Preparation
$ 1,418.00 Title Insurance
$ 225.00 Title Insurance Endorsement
$ 65.00 Title Tax Cert
$ 30.00 Courier/Express Mail

1200 GOVERNMENT RECORDING & TRANSFER CHARGES
$ 120.00 Recording Fees


$ 9,536.27 TOTAL ESTIMATED BORROWER SETTLEMENT CHARGES

TOTAL ESTIMATED FUNDS NEEDED TO CLOSE:
$ 4,786.33 Estimated Closing Costs
$ 4,749.94 Estimated Prepaid Items/Reserves
$ (2,779.00) Financed PMI/Funding

$6,757.27 TOTAL



TOTAL ESTIMATED MONTHLY PAYMENT

$1,067.89 Principal and Interest
$388.42 Taxes
$76.74 Mortgage Insurance

$1,533.05 TOTAL MONTHLY PAYMENT

If she has locked in her rate, but has not signed any paperwork, does she have the option to choose another mortgage lender? She has already paid for the appraisal but it has not been done yet. Thanks in advance for the guidance.

K
She of course always has the option to go with another lender. Even if she had signed paperwork, its never a "done deal" until you close. Looking at the fees, expenses and accruals that you have listed, they seem to be right in line with the costs here in Houston.
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Old 02-24-2009, 06:01 PM
 
Location: A little suburb of Houston
3,702 posts, read 15,923,098 times
Reputation: 2047
I did not see the HO insurance in there anywhere or, since it is Houston, Flood insurance (a must for this area). It appears this will be going the escrow route so I would expect to see those in there unless they were included somehow w/the taxes.

Did your friend get a survey and pay for it seperately? I would always recommend a survey be done as well.
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Old 02-25-2009, 12:43 PM
 
50 posts, read 183,860 times
Reputation: 45
i got a 5.0 rate with half a point and my credit isnt great, im in houston
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Old 02-25-2009, 01:07 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
Reputation: 952
Quote:
Originally Posted by pleasesaythe4th View Post
i got a 5.0 rate with half a point and my credit isnt great, im in houston
FHA or conventional? It does make a difference.
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Old 02-25-2009, 02:48 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
Reputation: 1007
also when did you lock?



Quote:
Originally Posted by pleasesaythe4th View Post
i got a 5.0 rate with half a point and my credit isnt great, im in houston
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