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Old 09-17-2008, 07:04 PM
 
192 posts, read 436,574 times
Reputation: 58

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410k loan, 5.75% 30 years fixed rate

Origination fee: 1% $4.100.00
Appraisal Fee: $300
Credit Report: $16.59
Tax service fee:$60
Commitment fee $225
Flood Cert: $10.50
Attorney fee: $450
Title Insurance: $557
Recording fees: $85
Survey-optional $275
Courier: $25

total : $6.104.09

I am in NC, if that matters.
someone told me nobody pays origination fee anymore nowsday, is that ture?

thanks
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Old 09-17-2008, 07:07 PM
 
Location: Virginia Beach, VA
2,124 posts, read 8,815,859 times
Reputation: 818
Quote:
Originally Posted by duhrambull View Post
410k loan, 5.75% 30 years fixed rate

Origination fee: 1% $4.100.00
Appraisal Fee: $300
Credit Report: $16.59
Tax service fee:$60
Commitment fee $225
Flood Cert: $10.50
Attorney fee: $450
Title Insurance: $557
Recording fees: $85
Survey-optional $275
Courier: $25

total : $6.104.09

I am in NC, if that matters.
someone told me nobody pays origination fee anymore nowsday, is that ture?

thanks

Ahh, is this a refi or a new loan? Cause those are just the lenders costs. your total closing cost will generally run closer to 3% of the sales amount... and I am assuming you are putting some money down...so the loan amount is higher than 410K?

Has your agent run a buyers net sheet for you?

Oh, and I see origination points all the time.... your source was incorrect.

shelly
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Old 09-17-2008, 07:14 PM
 
192 posts, read 436,574 times
Reputation: 58
Quote:
Originally Posted by shellytc View Post
Ahh, is this a refi or a new loan? Cause those are just the lenders costs. your total closing cost will generally run closer to 3% of the sales amount... and I am assuming you are putting some money down...so the loan amount is higher than 410K?

Has your agent run a buyers net sheet for you?

Oh, and I see origination points all the time.... your source was incorrect.

shelly
This is a new loan and those numbers are from the bank's good faith estimate, are there going to be more fee than that?
I do put 20% down and the remainng loan is 410k.
thanks
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Old 09-17-2008, 07:49 PM
 
945 posts, read 1,981,687 times
Reputation: 361
Quote:
Originally Posted by duhrambull View Post
410k loan, 5.75% 30 years fixed rate

Origination fee: 1% $4.100.00
Appraisal Fee: $300
Credit Report: $16.59
Tax service fee:$60
Commitment fee $225
Flood Cert: $10.50
Attorney fee: $450
Title Insurance: $557
Recording fees: $85
Survey-optional $275
Courier: $25

total : $6.104.09

I am in NC, if that matters.
someone told me nobody pays origination fee anymore nowsday, is that ture?

thanks
It depends. I will say that $557 is really, really cheap for title ins. I think the originaion fee is high. We have an almost identicle loan amount with 40% down first, and our closing costs were a TOTAL of what your origination fees are. We're in IL.
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Old 09-17-2008, 07:55 PM
 
Location: Broward County
2,517 posts, read 11,015,853 times
Reputation: 1391
don't forget the pre-paid items ! That's another 2k-4k depending on where you live. Pre-paids are the remaining years property taxes, 1 year of insurance, flood insurance depending where you are at and some other stuff
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Old 09-17-2008, 08:01 PM
 
Location: Plano, Texas
1,673 posts, read 7,000,928 times
Reputation: 697
those fees look fair to me; however the rate is high since you are paying 1 point origination. If your credit score is over 700, paying 1 point you should get a 30 year fixed at 5.625% as of today.
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Old 09-17-2008, 08:02 PM
 
Location: Norfolk, VA
1,036 posts, read 3,959,926 times
Reputation: 515
It does matter that you are in NC. Shelly is from VA and some states have tax stamps or title insurance making it far more expensive for buyers. NC isn't the cheapest state, but its pretty nice.

There are a few "optional" items left out that are HIGHLY recommended.

Home Inspection ~$350
Termite Inspection ~$75


Since these are usually paid outside of closing some lenders justify that as a reason not to put it on the GFE. I prefer to so buyers see the "full cost", but I let them know those are usually paid to the third party at the time the service is done.

The item that is missing is the 1st year of home owners insurance which you need to pay upfront. It depends on whom you use and the features, but expect ~$750-950 for a $500,000 home in the Durham area (I assume from your name).

If you want an escrow account, you also need to pay 2 months of taxes and insurance into it at closing. If you chose not to have an escrow account, make sure there is no fee from the lender for that option (~.25% of the loan amount on Fannie Mae loans).

The appraisal and survey seem a little on the low side, usually I would estimate an extra $50 on each of those. However the bank may have a good provider and it's withing the potential range. Title insurance in NC is $2 per $1000 unless you get a reissue rate, so that is also low. I would expect closer to $950 for it... but again the bank could be estimating a reissue rate or a provider that they have an interest in.
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Old 09-17-2008, 08:14 PM
 
Location: Norfolk, VA
1,036 posts, read 3,959,926 times
Reputation: 515
Quote:
Originally Posted by fairmarketvalue View Post
It depends. I will say that $557 is really, really cheap for title ins. I think the originaion fee is high. We have an almost identicle loan amount with 40% down first, and our closing costs were a TOTAL of what your origination fees are. We're in IL.
You need to compare apples-to-apples though. Closing costs and interest rates go hand in hand. We can do no closing cost loans if a customer wants, but the rate will of course be higher. Or they can pay 1% origination fee if they want a lower rate. Or 2 points to get an even lower rate at a much higher cost.

You can always trade closing costs with interest rate/monthly payment as best fits your situation.


Quote:
Originally Posted by heydade View Post
don't forget the pre-paid items ! That's another 2k-4k depending on where you live. Pre-paids are the remaining years property taxes, 1 year of insurance, flood insurance depending where you are at and some other stuff
Luckily here in Central NC we have a fraction of what FL has. No flood insurance and home insurance is much lower. Insurance will be $900 tops but that could still mean $1500-2000 total.


Quote:
Originally Posted by VictorBurek View Post
those fees look fair to me; however the rate is high since you are paying 1 point origination. If your credit score is over 700, paying 1 point you should get a 30 year fixed at 5.625% as of today.
True, but don't forget rates can be different from state to state. Some states have special adjustments even with major banks like Wells or Citi. As of today many lender had 5.625% with 1% origination, but since we don't know all the details of his transaction we can't say if the quote he has is too high or just right.
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Old 09-17-2008, 08:19 PM
 
192 posts, read 436,574 times
Reputation: 58
Quote:
Originally Posted by VictorBurek View Post
those fees look fair to me; however the rate is high since you are paying 1 point origination. If your credit score is over 700, paying 1 point you should get a 30 year fixed at 5.625% as of today.
My credit score is 790, i guess i should get the best rate out there.
There is an additional $2852.49 estimated prepaid and escrow costs.

I think i need to have a good talk with the broker tomorrow morning.
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Old 09-17-2008, 09:01 PM
 
Location: Virginia Beach, VA
2,124 posts, read 8,815,859 times
Reputation: 818
Quote:
Originally Posted by rcarrillo View Post
It does matter that you are in NC. Shelly is from VA and some states have tax stamps or title insurance making it far more expensive for buyers. NC isn't the cheapest state, but its pretty nice.

There are a few "optional" items left out that are HIGHLY recommended.

Home Inspection ~$350
Termite Inspection ~$75


Since these are usually paid outside of closing some lenders justify that as a reason not to put it on the GFE. I prefer to so buyers see the "full cost", but I let them know those are usually paid to the third party at the time the service is done.

The item that is missing is the 1st year of home owners insurance which you need to pay upfront. It depends on whom you use and the features, but expect ~$750-950 for a $500,000 home in the Durham area (I assume from your name).

If you want an escrow account, you also need to pay 2 months of taxes and insurance into it at closing. If you chose not to have an escrow account, make sure there is no fee from the lender for that option (~.25% of the loan amount on Fannie Mae loans).

The appraisal and survey seem a little on the low side, usually I would estimate an extra $50 on each of those. However the bank may have a good provider and it's withing the potential range. Title insurance in NC is $2 per $1000 unless you get a reissue rate, so that is also low. I would expect closer to $950 for it... but again the bank could be estimating a reissue rate or a provider that they have an interest in.
You are absolutely correct!! and I was considering the pre-paids as well when I was refering to the whole 3%.

shelly
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