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I've always got a lot of great feedback from this website so I thought I'd post my information here. I am refinancing my home and I got a quote from my employer and I think a saved a little bit of money. My scanner is not working so I had to create an excel document to look like my original GFE so you guys can see the numbers. To identity my first quote on the top I've labled 1st Quote. The interest rate on this one is 5.125%
On the second quote, another bank the interest rate is 5% but the woman is trying to convince me that this quote is better. My payment is a little higher with this one. Not only that the closing costs say $3831.90 while the closing costs on my original quote say $5851.50 but that is because the 1st quote added the upfront MIP into the closing costs. So in all actuality it looks like my second quote is eating me up in costs even though at first glance it looks cheaper. Am I wrong? The second quote has closing cost of $3831.90 plus the MIP at $3824. While my first quote has $5851 but the MIP is included in that. Please review and let me know what quote is best. I want to make sure I make the right decision. I appreciate all the responses. Thanks a bunch~
Last edited by atlcharm; 01-15-2009 at 09:48 PM..
Reason: needed to revise links
Thanks so much! Will you see my responses to you in red?
Quote:
Originally Posted by renriq02
Quote 1 - 90.94 should be the monthly MI
218253 x 0.5% divided by 12 = 90.94
Quote 2 - 92.64 should be the monthly MI
222324 x 0.5% divided by 12 = 92.64
2. You have two different loan amounts. One is higher than the other
Yes, they went about showing it different. On loan 1 my upfront MIP is $3753 which is shown on line 808-817. On loan 2 it is shown in the body of the GFE but it you look on top they add the MIP of $3824 to the mortage amount making the mortgage $222k versus the $218k of loan 1. Are you following?
3. quote 1 with the 808-817 adds up to 3753???? where did the fees come from?
This is the upfront MIP fee required by FHA. Loan 2 has it as well. It is $3824 according to their figures.
4. quote 1 is using 11 months for county taxes? and 9 months for city taxes. Quote 2 is using only 7 months of taxes
I didn't even catch that thanks.
Loan 2 just seems like it is trying hard to compete with loan 1 and is showing their information differently in order to make me think it is the better deal
1st quote lender must not do FHA loans often
MIP has a spot....line 902....and they have it at 75 cents
Make sure this is corrected or you could be paying everything written plus the 1.75% fee which is not in the proper spot
MIP can be paid out of pocket or rolled into the loan amount
Your fee is 1.75% so make sure you multiply your loan by that amount...and see who got it right
1st quote lender must not do FHA loans often
MIP has a spot....line 902....and they have it at 75 cents
hmmm. that's wierd but quote 2 doesn't have an amount at all.
MIP can be paid out of pocket or rolled into the loan amount
Yes it seems like loan 1 is taking it out of the cash due to me and quote 2 is adding it to the loan instead.
Your fee is 1.75% so make sure you multiply your loan by that amount...and see who got it right
Now that I've done that I'm total confused at which one is better. if i mult. loan 1 by 1.75% I come up with $3819 as the fee. My loan shows $5851.50 in closing costs but if you take the MIP out it is really $2890 in closing cost. Less than 1.75% but as an employee my loan is discounted. Now on loan 2 the closing cost is correct at $3831 which is highter than loan one at $2890 but at the same time they they are not taking the MIP from my proceeds like loan one, so I guess that is a plus to walk alway from closing with $3k more, but at the same time they may be underestimating my taxes where as loan 1 is more conservative at allocating the taxes so I won't have any surprises.
1. you dont need to be conservative on the taxes. Call the attorney, and find out how many months you will need...then ask the lender how many cushions they will require. It's that simple
2. Don't work with neither unless they properly disclose everything
1st quote lender must not do FHA loans often
MIP has a spot....line 902....and they have it at 75 cents
Make sure this is corrected or you could be paying everything written plus the 1.75% fee which is not in the proper spot
MIP can be paid out of pocket or rolled into the loan amount
Your fee is 1.75% so make sure you multiply your loan by that amount...and see who got it right
can i throw in a question if you don't mind? in a typical FHA loan closing cost, does the MIP upfront fees rollover to the total mortgage amount or could it be included on the closing costs? my GFE shows that the mortgage consultant rolled it over to my total mortgage amount and at the same time included it on the closing costs? is there an explanation for such. i would really like to maximize whatever options i can find. my home builder can throw in up to 4% in closing costs provided i use their lender.
#1 is a tad better deal IMO, you can choose to roll (finance) the UFMIP to the loan amount or pay it from your cash out proceeds, most people choose to roll it into the loan amount. Which LO do you feel more comfortable with though? Do you have equal faith that both can deliver on the promised terms?
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Now I'm really confused
