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Old 06-12-2017, 11:07 PM
 
2 posts, read 1,609 times
Reputation: 10

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Hello. First, Thank you so much for reading the thread!!
long story short.

its newly constructed house and is priced at 375k. builder is helping us out with 5k towards closing cost and also they will pay for the title insurance 2.3k. If we are using preferred lender from builder and if we are not bringing our realtor, builder is taking off 15k from the listing price of the house so actual price would be 360k.

We are putting down 20 percent as down payment and my wife and I both have 790++ credit scores.
This is the loan estimation I received from lender today.

Total Loan Amount:

$ 287,672

Interest Rate:

4.250 %

Term/Due In:

360 / 360 mths

ORIGINATION CHARGES
Underwriting Fee Borrower $ 500.00
Funding Fee Borrower $ 500.00
Admin Fee Borrower $ 450.00

OTHER CHARGES
Appraisal Fee Borrower $ (550.00)
Document Preparation Fee Borrower $ 200.00
Final Inspection Borrower $ 180.00
Closing/Escrow Fee Borrower $ 350.00
Lender's Title Insurance Borrower $ 2,250.00
Title - Courier Fee Borrower $ 50.00
Title - E Recording Fee Borrower $ 50.00
Survey Borrower $ 450.00
Mortgage Recording Charge County Clerk Recorder Borrower $ 125.00
Deed Recording Charge County Clerk Recorder Borrower $ 75.00
Daily Interest Charges MFS, LLC Borrower $ 33.50 x 15 day(s) $ 502.50
Hazard Insurance Premium Borrower $ 100.00 x 12 mth(s) $ 1,200.00
Hazard Insurance Reserves Borrower $ 100.00 x 3 mth(s) $ 300.00
County Property Tax Reserves Borrower $ 779.16 x 3 mth(s) $ 2,337.48
Aggregate Adjustment Borrower $ -2,200.00
Owner's Title Insurance Borrower $ 250.00
HOA Certification Fee Borrower $ 500.00


what you guys think? should i shop around more lenders and give up 15k? or go with this one but have a little deal with this lender? any input appreciated.
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Old 06-13-2017, 05:38 AM
 
Location: Back in the Mitten. Formerly NC
3,832 posts, read 5,792,661 times
Reputation: 5340
What state are you in? Title fees vary greatly from state to state. It is hard to say if the fees are within a normal range without knowing.

As far as rate, extremely few people are getting under 4.25 with a fixed rate right now. 4.25 is lower than many (maybe most) are getting, so you are good there.

What I am posting below are not fees. They are escrow impounds and your homeowner's, which all lenders will require to be paid up front. This is not going to vary from lender-to-lender*. It is your money anyway, going into your escrow account to pay for future homeowner's and taxes. Well, except for the interest, but as I said, 4.25 is pretty low for right now. You are paying interest from the closing date until your first payment is due, and every lender will collect this. (*I mean, it could change very slightly, but your taxes and insurance aren't changing, so the difference would be very minimal and again, it is going into your escrow account, so it is still your money.)
Daily Interest Charges MFS, LLC Borrower $ 33.50 x 15 day(s) $ 502.50
Hazard Insurance Premium Borrower $ 100.00 x 12 mth(s) $ 1,200.00
Hazard Insurance Reserves Borrower $ 100.00 x 3 mth(s) $ 300.00
County Property Tax Reserves Borrower $ 779.16 x 3 mth(s) $ 2,337.48
Aggregate Adjustment Borrower $ -2,200.00
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Old 06-13-2017, 05:45 AM
 
Location: Back in the Mitten. Formerly NC
3,832 posts, read 5,792,661 times
Reputation: 5340
Honestly, looking at them again. You say the builder will pay the lender's title fees. So, take that out and take out your escrow impounds, daily interest, HOA fee, and prepaid homeowner's insurance and you are roughly around $3000. Recording fees are set by the municipality and cannot change lender to lender. You will be hard pressed to find a better deal. Even so, you are saving $15K. The only way I think this would be a bad decision is if you had either more than $15K in closing costs (you have roughly $3K because the rest is prepaids and escrows) or you had a crazy high interest rate. It is within the normal range. So, in a nut shell, I'd go with them.
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Old 06-13-2017, 11:58 AM
 
3,806 posts, read 8,431,417 times
Reputation: 4948
Quote:
Originally Posted by leesang86 View Post
Hello. First, Thank you so much for reading the thread!!
long story short.

its newly constructed house and is priced at 375k. builder is helping us out with 5k towards closing cost and also they will pay for the title insurance 2.3k Seller usually pays this anyway, YMMV. If we are using preferred lender from builder and if we are not bringing our realtor, builder is taking off 15k from the listing price of the house so actual price would be 360k.

We are putting down 20 percent as down payment and my wife and I both have 790++ credit scores.
This is the loan estimation I received from lender today.

Total Loan Amount:

$ 287,672

Interest Rate:

4.250 %

Term/Due In:

360 / 360 mths

ORIGINATION CHARGES
Underwriting Fee Borrower $ 500.00
Funding Fee Borrower $ 500.00
Admin Fee Borrower $ 450.00
Although these charges have different names depending on lenders, the dollar amount is consistent.

OTHER CHARGES
Appraisal Fee Borrower $ (550.00)
Document Preparation Fee Borrower $ 200.00
Final Inspection Borrower $ 180.00
Closing/Escrow Fee Borrower $ 350.00
Lender's Title Insurance Borrower $ 2,250.00
Title - Courier Fee Borrower $ 50.00
Title - E Recording Fee Borrower $ 50.00
Survey Borrower $ 450.00
Mortgage Recording Charge County Clerk Recorder Borrower $ 125.00
Deed Recording Charge County Clerk Recorder Borrower $ 75.00
Daily Interest Charges MFS, LLC Borrower $ 33.50 x 15 day(s) $ 502.50
Hazard Insurance Premium Borrower $ 100.00 x 12 mth(s) $ 1,200.00
Hazard Insurance Reserves Borrower $ 100.00 x 3 mth(s) $ 300.00
County Property Tax Reserves Borrower $ 779.16 x 3 mth(s) $ 2,337.48
Aggregate Adjustment Borrower $ -2,200.00
Owner's Title Insurance Borrower $ 250.00
HOA Certification Fee Borrower $ 500.00


what you guys think? should i shop around more lenders and give up 15k? or go with this one but have a little deal with this lender? any input appreciated.
As much as I hate it, I'd go with the builder's offer and check and re-check the lender's numbers for consistency as you progress through the process.
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Old 06-13-2017, 06:07 PM
 
2 posts, read 1,609 times
Reputation: 10
Thank you so much for the detail reply.... I live in Texas and near Aledo area which property tax is outrageous..
anyways I am surprised to know that 4.25 is actually a good deal.. as much as I hate to with this lender, i may have to with him.. 7/1 arm might be better option here??
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Old 06-14-2017, 09:53 AM
 
Location: Phoenix, AZ > Raleigh, NC
16,989 posts, read 22,146,852 times
Reputation: 28411
Quote:
Originally Posted by leesang86 View Post
Thank you so much for the detail reply.... I live in Texas and near Aledo area which property tax is outrageous..
anyways I am surprised to know that 4.25 is actually a good deal.. as much as I hate to with this lender, i may have to with him.. 7/1 arm might be better option here??
Not if there is ANY possibility you will still be in that hone in 7 years.
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Old 06-17-2017, 07:00 AM
 
Location: MID ATLANTIC
8,227 posts, read 20,514,003 times
Reputation: 9526
OP, what you do.......go with the builder loan and just keep asking if there is a prepayment penalty. Around the 3rd or 4th time, ask him/her specifically is there a PPP if you refinance the home a couple weeks after closing (face to face would probably make you LOL). What the public is not aware of - most brokers and most correspondent lenders (what most builder companies are) pay a significant penalty to the investor when a consumer pays off their loan within their first year. These penalties are not easy for most to swallow. I'm not a fan of the builder owned model (but I do understand the approved lender list). The goal is to have them ask you what it would take you not to refi in the first year and sweeten your loan.

Now, I am a little serious, but laced with sarcastism with a hint of wishful thinking. If more people did really refi early, maybe this model would be less appealing to the builder. With Dodd Frank, the builder owned mortgage company appeared that it may have met its death. But now, with talks of repeal, they are here to stay. But that doesn't mean you can't have fun jerking their chain.
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