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Old 05-28-2010, 02:38 PM
 
79 posts, read 219,010 times
Reputation: 44

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Currently at the tail end of escrow (2 months into it) & our closing costs for a $310,000 home in Los Angeles is currently around $16,500. I didn't realize it would take this long and be so much and we are not even closing yet. Just wanting to do a little get a gauge of things since all of the mortgage/closing cost calculators online seem to give different calculations. If you could help shed light on whether this sounds correct or not that would be greatly appreciated.

Here is the break down on the GFE form

Original Loan=$310,000
Amount financed:-20%downpayment= $248,000
interest rate= 4.875
  • Origination Charge=$6,458
  • Charges for all other settlement services(appraisal, creditreport, title services,government recording charges, transfer taxes, Home owners insurance =$11,956.98
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Old 05-28-2010, 03:03 PM
 
123 posts, read 258,006 times
Reputation: 192
Default Try $18,414.98!

Does not add up? not $16500 but $18,414,.98 Seems high! Need to see GFE to really understand this? In anyones book that is high for a $248,000 loan.
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Old 05-28-2010, 05:13 PM
 
588 posts, read 913,979 times
Reputation: 870
origination charge is high, depends on what points you are paying and how that is reflected in the gfe. but more importantly, be aware that the gfe may list costs that the seller will actually be paying. talk to the lender, ask about every line on there, they should be able to clarify what's an estimate, how much certain things can change, what you can shop for yourself, etc. In my (recent) closing, on the new (this year) GFE, it listed about 10k that was actually the excise tax (or stamp) that the SELLER would be paying, not me. My broker insisted that it's not his fault, the new rules required him to write it that way. I don't know if that's true, but he was right in that I didn't pay any of that at closing. Attached to your GFE should be another doc (can't remember, might have been part of the loan qualification docs) that will show numbers much closer to reality. But, yeah, make sure your lender explains EVERYTHING to you, don't let them off the hook until you are satisfied.
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Old 05-28-2010, 05:26 PM
 
2,415 posts, read 4,711,049 times
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In my area of New York, I've been told by loan officers and real estate agents to expect to pay about 6% of the purchase price in closing costs so that doesn't sound high to me.
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Old 05-28-2010, 05:59 PM
 
68 posts, read 449,264 times
Reputation: 25
Origination and other charges are about there depending on the lender

Tell your loan processor to give you detail of the origination cost, did you use POINTs to buy a lower interest rate?? The other things like appraisal, creditreport, title services,government recording charges, transfer taxes, Home owners insurance should not change significantly from lender to lender, but the origination charge is really high.

my home is 490K, 20% down borrowing 392K
according to my estimate of closing cost, it would be about $12K-$14K (though this differs from lender to lender, citibank quoted me $20K in closing cost and I say "HELL NO", so I went with BOA which closing was about $12K-$14K depending if I wanted to add some other pre-payments stuffs like property tax and stuff.

Sounds about right if there are some pre-payments like a pre-paid of 6 months property tax or something like this as the lender wants to make sure you have money for these at least for the next 6 months.


Quote:
Originally Posted by curiosa View Post
Currently at the tail end of escrow (2 months into it) & our closing costs for a $310,000 home in Los Angeles is currently around $16,500. I didn't realize it would take this long and be so much and we are not even closing yet. Just wanting to do a little get a gauge of things since all of the mortgage/closing cost calculators online seem to give different calculations. If you could help shed light on whether this sounds correct or not that would be greatly appreciated.

Here is the break down on the GFE form

Original Loan=$310,000
Amount financed:-20%downpayment= $248,000
interest rate= 4.875
  • Origination Charge=$6,458
  • Charges for all other settlement services(appraisal, creditreport, title services,government recording charges, transfer taxes, Home owners insurance =$11,956.98
Rate this post positively Quick reply to this message
 
Old 05-28-2010, 08:43 PM
 
Location: MID ATLANTIC
8,140 posts, read 19,989,830 times
Reputation: 9382
2 points at 4.875% seems like a high quote.

Is the seller paying any closing costs? Those won't be backed out of the estimate. Not knowing your state's closing regulations makes it heard to give you a fair opinion. Talk to your lender.
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Old 05-29-2010, 01:12 AM
 
58 posts, read 189,149 times
Reputation: 26
2 points could be due to extended lock, if buyer has locked rate 2 months ago some points had to be paid for locking.
rates were different then.
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Old 05-29-2010, 04:15 PM
 
Location: SoCal again
17,762 posts, read 14,640,399 times
Reputation: 35427
we pay $6,500 in closing costs (seller doesn't pay anything) for a loan of $235,000. Purchase prize is $273,000. And we bought points to get a rate of 4.875%
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Old 05-29-2010, 04:23 PM
 
370 posts, read 949,410 times
Reputation: 674
This thread just makes me very happy that I am a renter and will continue to be one indefinitely.
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Old 05-29-2010, 04:25 PM
 
19,667 posts, read 21,181,971 times
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Quote:
Originally Posted by runrgirl View Post
This thread just makes me very happy that I am a renter and will continue to be one indefinitely.
I wouldn't say that... I paid zero closing costs... and I am glad I will no longer be a renter...
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