New loan estimate and comparison with in-house lender w/ DPA vs better.com w/ no DPA. Need a 2nd opinion. (fixed rate, 401k)

[htxqman]

New loan estimate and comparison with in-house lender w/ DPA vs better.com w/ no DPA. Need a 2nd opinion.


Here is a comparison between:

Better.com w/ no DPA vs KHBS (KB Home) w/ DPA from TSAHC --KATY, TX
https://imgur.com/a/bU8iKMD



Breakdown:

My credit score: 703

My wife: 740

No credit card debt or student debt.

Only debt is two car notes which total together only $380 a month (Balance total for both: $16000)

Combined income: $70000

House: $214,995



Putting down 3%



Realtor is contributing $3000 towards closing.



In house lender: KBHS is providing $5000 in seller credits towards closing.

Using DPA w/ TSAHC it's at a fixed rate 5.625% is taking care of 3% down payment (About $6400 to $6500).

The 5.625% is pretty high because TSAHC is providing down payment assistance.



I'm now looking at better.com rates. No down payment assistance or closing assistance. Still have my realtor contributing $3000 towards closing.

They have me at 3.875% with 3% down (About $6400 to $6500).

What I do not understand is paying for the points. See my loan estimate for the breakdown.

For this option I plan to borrow from 401k w/o penalty and pay myself back interest.

[Pfhtex]

You are being charged points to get that KB rate down to 3.875%. With the $5,000 incentive, IMO, stick with the KB in-house lender.

[SmartMoney]

On option 1, ask for a 0 point quote so you are compering apples to apples. The other thing to be aware of they left off fees you will be hit with such as survey (check your contract, new construction typically requires you to reimburse seller), the final inspection fee, tax service (charged on 99%) to name a few.

Not a fan of the rate in option 2, plus the fact w DPA you are setting yourself up for a short sale if you have to sell and cannot pay off the balance.

The rate of 5.625% seems high, even with DPA. Ask in house lender for 0 point quote with no DPA.