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VII Details of Transaction
What does this mean of Freddie Mac Form 65
Purchase price-$558,00
e.Estimated prepaid items-$335.37
f.Estimate closing costs- $ 35,377.35
h.Discount(if borrower will pay) $ -11,492.01
I dont understand where this number is coming from. $-11,492.01
Closing cost should be $ 24,221 first page of estimated cost.
What does your lender say?
What does your title company or closing attorney say?
If you have an agent, what do they tell you?
Those are three people who have more knowledge specific to your instance than any of us on CD have, and any of them should be able to offer more accurate help than we possibly can.
The negative discount (line h) means that you're getting a credit from your lender, probably for choosing a slightly higher interest rate than you qualify for, so that the lender will cover part of your closing costs. This is fairly common, and your mortgage officer probably went over this with you at some point, but it's easy for first-time buyers to become confused. Discount points can be either paid by the borrower to "buy down" their interest rate, or can be paid by the lender (showing up as a negative on your loan estimate), meaning you're getting paid to have a higher interest rate than the current base rate.
The prepaid items are daily interest charges assessed for the days in the month between your closing date and your first mortgage payment.
If you subtract the lender credit of $11,492.01 from your total estimated closing costs, and add the prepaids back in, you come up with $24,221.
VII Details of Transaction
What does this mean of Freddie Mac Form 65
Purchase price-$558,00
e.Estimated prepaid items-$335.37
f.Estimate closing costs- $ 35,377.35
h.Discount(if borrower will pay) $ -11,492.01
I dont understand where this number is coming from. $-11,492.01
Closing cost should be $ 24,221 first page of estimated cost.
The answer above is the explanation. You don't provide your loan amount, but you have what looks like an over 2 point lender credit. What rate are you at? With those (very) high closing costs, it sounds like you are paying a lump sum to get rid of PMI and a lender credit to offset it.
Did your blood boil when I said you are paying very high closing costs? I did that for a reason. Your costs could very easily be in the normal range with several explanations. The point I wanted to make is to tune out all those that are being "helpful" and set your teeth on edge. People gravitate to first time buyers with well meaning advice. Some even intend to get under your skin. Know that, try to recognize the incoming advice. Politely nod, then go call your agent or loan officer if there is any concern. Trust those you have engaged for your first purchase.
Good luck.
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