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We are moving into a new townhome in March and are looking for a 30 year fixed loan. We have excellent credit and are putting 5% down.
Our builder offered us $5k in closing costs to use their lender. We looked at their GFE and it seemed to be loaded with high closing costs (this was 2 months ago so I won't list the outdated rates). This was based on a 80/15 loan. Both loans had origination fees, appraisal fees, etc. Total closing costs for both loans was close to $9k (obviously not including prepaid taxes, etc).
My father-in-law's personal banker works at Bank of America, so I decided to see what kind of rate he could get us thru their No Fee Mortgage Program. We applied thru him earlier this week and received his GFE. It lists a single 30 yr fixed loan for 95%. The rate is 5.75% with 0.89 points. There is no PMI and no closing costs, other than $930 for Tax Stamps (not sure what that is). Estimated hazard insurance seemed very high, but I'm not sure if this is provided by the lender, or something we get on our own.
Does this seem too good to be true? No PMI or closing costs, and still a pretty decent rate? I have a call set up with for Friday to discuss the GFE..what types of questions should I ask?
how about title fees?
stamps maybe something you have to pay per state.
what state are you in?
Quote:
Originally Posted by Go Blue 99
We are moving into a new townhome in March and are looking for a 30 year fixed loan. We have excellent credit and are putting 5% down.
Our builder offered us $5k in closing costs to use their lender. We looked at their GFE and it seemed to be loaded with high closing costs (this was 2 months ago so I won't list the outdated rates). This was based on a 80/15 loan. Both loans had origination fees, appraisal fees, etc. Total closing costs for both loans was close to $9k (obviously not including prepaid taxes, etc).
My father-in-law's personal banker works at Bank of America, so I decided to see what kind of rate he could get us thru their No Fee Mortgage Program. We applied thru him earlier this week and received his GFE. It lists a single 30 yr fixed loan for 95%. The rate is 5.75% with 0.89 points. There is no PMI and no closing costs, other than $930 for Tax Stamps (not sure what that is). Estimated hazard insurance seemed very high, but I'm not sure if this is provided by the lender, or something we get on our own.
Does this seem too good to be true? No PMI or closing costs, and still a pretty decent rate? I have a call set up with for Friday to discuss the GFE..what types of questions should I ask?
"It lists a single 30 yr fixed loan for 95%. The rate is 5.75% with 0.89 points. There is no PMI and no closing costs, other than $930 for Tax Stamps (not sure what that is). Estimated hazard insurance seemed very high, but I'm not sure if this is provided by the lender, or something we get on our own."
Your title fees are missing from GFE, are you Escrowing?, what is the Origination fee? 95% with no PMI? Hmmm....
Is BOA going to be a lender, or there is 3rd party lending? What are their fees? Who's paying appraisal, what about doc stamps and intengibles, is it all included in their "no closing cost"?? Is there prepayment penalties? Any other wierd stuff? Is your credit good? All needs to be taken in consideration.
If you indeed going with them, ask for HUD statement with all the fees included, then paint the picture "pink" )
For a townhome you would need to secure your own personal property insurance. You need to find out what is covered by your association, get a copy of the by-laws or call the management company. Then you need to get a condo policy from your insurance agent to cover your things and any building coverage you will need for your townhome. It is generally pretty inexpensive unless you need to cover a lot of the townhome, usually less then $20/month. You can not escrow personal property insurance with your mortgage.
Thanks for the feedback. I think I'm going ahead with this loan. I just had a call with the banker and everything seems legit- no PMI or closing costs (other than prepaid items). He is also giving us a free 45 day lock. It is too early to lock in right now, but I certainly can't complain about the 5.75% with 0.89 points.
I suppose I'll give the builder's lender an opportunity to match.
Good luck getting to closing with Bank of America without pulling your hair out. I just switched lenders about a week and a half before closing because I was so frustrated with the level of service I was getting.
I haven't told B of A yet as I want a back up just in case, but we close on Wednesday and I STILL do not have all the papers I need to sign for them. I have been told they were getting emailed to me several times but still no dice. Meanwhile, the smaller bank I went to has already got the papers done plus set up the closing time (took them about 5 days).
My sister in law is a realtor and she has told me multiple times she has had major problems getting to a close with Bank of America. Something about being to big for their own good. Probably get worse with the whole countrywide acquisition.
When I worked there it was 30days MINIMUM to close...looks like nothing has changed.
Quote:
Originally Posted by bls5555
Good luck getting to closing with Bank of America without pulling your hair out. I just switched lenders about a week and a half before closing because I was so frustrated with the level of service I was getting.
I haven't told B of A yet as I want a back up just in case, but we close on Wednesday and I STILL do not have all the papers I need to sign for them. I have been told they were getting emailed to me several times but still no dice. Meanwhile, the smaller bank I went to has already got the papers done plus set up the closing time (took them about 5 days).
My sister in law is a realtor and she has told me multiple times she has had major problems getting to a close with Bank of America. Something about being to big for their own good. Probably get worse with the whole countrywide acquisition.
5.75% with .89 points and no closing costs is a very very good rate on 95% loan.
All the best.
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