U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 01-26-2010, 02:31 PM
 
394 posts, read 1,489,361 times
Reputation: 303

Advertisements

This is for a USDA loan. Thank for your opinion.

Origination 1%
Processing/underwriting $1,395
Pre-paid interest 15 days
Property tax impounds 7 months
Homeowners insurance 15 months
Appraisal fee $450
Title policy $400
Escrow fee $400-500
Miscellaneous escrow charges $100-300 (what would those be?)
Reply With Quote Quick reply to this message

 
Old 01-26-2010, 03:15 PM
 
Location: Plano, Texas
1,676 posts, read 6,467,801 times
Reputation: 686
Those fees look reasonable if you were locked at a good rate. The more you pay in fees the better the rate and the less you pay the higher the rate. To better answer your question, what rate can you secure with those fees.
Reply With Quote Quick reply to this message
 
Old 01-27-2010, 12:05 PM
 
Location: Georgia
2,545 posts, read 6,250,834 times
Reputation: 718
Quote:
Originally Posted by Fields of Green View Post
This is for a USDA loan. Thank for your opinion.

Origination 1%
Processing/underwriting $1,395
Pre-paid interest 15 days
Property tax impounds 7 months
Homeowners insurance 15 months
Appraisal fee $450
Title policy $400
Escrow fee $400-500
Miscellaneous escrow charges $100-300 (what would those be?)
The processing/underwriting looks a little higher. Anyway, make sure you carefully look at the fees thats going down the toilet, under the pretext of a "good faith estimate" some officers/brokers will quote less on the estimate for charges like Title etc that goes to the government agencies to make the GFE look good and make more money for themselves by increasing the other fees like "Misc fee" or "Processing fees" etc.
At closing they will just say that the Title goes to the government and they do not control that, thats when you realise how the title and insurance actual fees is much more than the amount on the "bad faith estimate"
Reply With Quote Quick reply to this message
 
Old 01-27-2010, 01:38 PM
 
Location: Plano, Texas
1,676 posts, read 6,467,801 times
Reputation: 686
Quote:
Originally Posted by zulu400 View Post
The processing/underwriting looks a little higher. Anyway, make sure you carefully look at the fees thats going down the toilet, under the pretext of a "good faith estimate" some officers/brokers will quote less on the estimate for charges like Title etc that goes to the government agencies to make the GFE look good and make more money for themselves by increasing the other fees like "Misc fee" or "Processing fees" etc.
At closing they will just say that the Title goes to the government and they do not control that, thats when you realise how the title and insurance actual fees is much more than the amount on the "bad faith estimate"

Due to the new Good Faith Estimate, loan officers cannot increase any fees once quoted. Plus, the title fees they quote have a 10% tolerance. If they are more than 10% higher than what was quoted, the loan officer must pay the difference.

the new GFE is a 3 page document that does not itemize the fees. All the 800 fees including ysp are grouped in one box called origination.
Reply With Quote Quick reply to this message
 
Old 01-27-2010, 02:07 PM
 
Location: Georgia
2,545 posts, read 6,250,834 times
Reputation: 718
Quote:
Originally Posted by VictorBurek View Post
Due to the new Good Faith Estimate, loan officers cannot increase any fees once quoted. Plus, the title fees they quote have a 10% tolerance. If they are more than 10% higher than what was quoted, the loan officer must pay the difference.

the new GFE is a 3 page document that does not itemize the fees. All the 800 fees including ysp are grouped in one box called origination.
Thats good to know Victor.
I'm just saying this... lets say the amount to close is about $15000.
Loan related charges = $7000 and other necessary charges = $8000. (I am over simplifying this)
What the agent can do is Quote $7500 for loan charges and $7500 for other charges like title and insurance + escrow etc....

for you it still looks like $15000, but when it ends up as $15500 at closing its possible that the agents charges are still the same, but he/she under quoted you on the other charges to make the GFE look good.
Just for example 10% of $15000 is $1500. So they are still within limits right ?

Another technique is go low on the escrow number of months to decrease the figure at the bottom of the page to make it attractive. I'm sure people are smart enough to question all the itemized charges, but the layman can easily be robbed of a lot of money on these deals. Don't even mention YSP's.... thats an even deadlier weapon, it will stick with you for the life of the loan
Reply With Quote Quick reply to this message
 
Old 01-27-2010, 02:25 PM
 
Location: Plano, Texas
1,676 posts, read 6,467,801 times
Reputation: 686
Yes, can show 7500 in the origination box, but that cannot increase. it can only decrease. So on this over simplified example, the LO couldnt lower the title fees and add those anywhere that would go to them.

Many shady LO's underestimate escrow to show lower total settlement charges.
Reply With Quote Quick reply to this message
 
Old 01-28-2010, 10:07 AM
 
Location: Wake Forest, NC
835 posts, read 3,622,730 times
Reputation: 648
This is why you should only compare fees that are directly related to the loan being quoted- 800 section charges. All other fees will be the same no matter the lender because they are related to the property. For example taxes are $200 a month and a years worth are due in 6 months you will need 6 months at clsoing no matter what. Same with all other fees outside of section 800.
.
Reply With Quote Quick reply to this message
 
Old 01-28-2010, 10:19 AM
 
Location: Plano, Texas
1,676 posts, read 6,467,801 times
Reputation: 686
Quote:
Originally Posted by dad2jules View Post
This is why you should only compare fees that are directly related to the loan being quoted- 800 section charges. All other fees will be the same no matter the lender because they are related to the property. For example taxes are $200 a month and a years worth are due in 6 months you will need 6 months at clsoing no matter what. Same with all other fees outside of section 800.
.
That is mostly true. One exception, some lenders have an affiliated business arrangement with title companies where they can get a kick back of the title fees. This has to be disclosed but consumers should pay attention to the title fees or they should choose the title company.

In most cases, just looking at the 800 section is good enough. With the new GFE, those fees are grouped together and called origination.
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top