Closing Cost & Interest Rate

[octrends]

in my case Title Ins-Owners Coverage = 1020 was paid by seller.

 

[blitzjs]

Do some of the fees I listed not apply with a new construction?

 

[wb]

4.375% + 0 pts
4.25% + .375 pts
4.125% + 1 pts
4% + 1.25 pts

Which one is the best?  Thanks!

 

[qwerty]

4.375% + 0 pts
4.25% + .375 pts
4.125% + 1 pts
4% + 1.25 pts

Which one is the best?  Thanks!

you need to find the break even point and determine if you think you will be there past that. that should be biggest factor on which is the best.

 

[usctrojancpa]

4.375% + 0 pts
4.25% + .375 pts
4.125% + 1 pts
4% + 1.25 pts

Which one is the best?  Thanks!

Are you sure that 4% can be had at 1.25pts when it takes 1pt to get 4.125%?  Almost always the points to buy down the rate further keep going up exponentially.  So to get to 4% you'd probably have to pay around 2pts.

 

[usctrojancpa]

I left out all the little charges ( < $100, like credit reports and such)

Origination fee = 990
Appraisal = 595
Title Ins-Lender Coverage = 437
Title Ins-Owners Coverage = 1020
Closing/Escrow/Settlement = 1456
Endorsement to Title = 125
City/Cnty Tax / Stamp-Deed = 858
HoA Transfer Fee = 550
Approximate Cost of Closing = 6495

Prepaid Interest = 1333.44
1st Year Home Owners Insurance = 1220
Approximate Cost of Prepaid Interest and Escrows = 2553.44

Approximate Total = 9048.44

The only lender fees are the first two (origination and appraisal, even though it is for a 3rd party appraiser).  Owner's title policy and county transfer tax is typically paid by the seller.

 

[myirvine]

blitzj

tell the lender to

1. get the appraisal fee lowered
2. contact the title company to get rid of the endorsement fee
3. contact escrow to get the escrow fee lowered

some of this is negotiable.  many title companies do not charge for standard endorsements and escrow fees tend to be a blackhole where overcharging is the norm.  the 990 origination seems to be the lender's processing and underwriting as there does not appear to be separate fees listed which is standard.


wb

ask your lender to provide you an updated list of rates/points since rates have since improved.  also be sure to ask if they are "quoting" 30-day locks or what often happens 10-15 day locks which you will not be able to close if you lock upon submitting your application.