Are my closing costs to high ?Here are the costs:
Loan Amount: 2,003
Interest Rate: 5.875%
Loan Origination Fee: (1%) 1,202.00
Loan Discount: (2%) 2,440.06
Appraisal Fee: 375.00
Credit Report: 26.50
Tax Related Service Fee: 400.00
Processing Fee: 725.00
Closing or Escrow Fee (FHA) 425.00
Title Insurance: 700.00
Tax Certificates: 40.00
Endorsements: 84.00
Titles Delivery Fee: 25.00
Policy Guarantee: 1.00
Recording Fee: 110.00
(Items required by lender to be paid in advance)
Interest for 23 days: 457.93
Mortgage Insurance Premium: 1,803.00
Hazard Insurance Premium: 792.96
(Reserves deposited with lender)
Hazard insurance Premium: 198.24
Taxes and assessment reserves: 1,003.80
Aggregate adjustment: -401.52
estimated closing cost: ,407.97
The loan office said it would probably be 2K less than quoted but still is 8K-10K high for closing? Seems a small high. Thanks!
YES this is WAY TOO high!!!! The origination is average, but you should not have to pay 2% in discount points – period! The tax relation service is a joke – we only charge $59!!!!! Seriously, they are screwing you royally. Also, the processing fee is straight income to the lender, that's not needed either. I'd also be curious to know what tax certificates and endorements are, I'm not familiary with those but then again it may be a state fee (I do loans in Washington state).
Prepaids and reserves will not change from lender to lender, those are standard costs when purchasing a home.
PLEASE shop around you are easily paying $3,500 too much!! At my credit union you could get a $122,003 loan for about $3,000 in closing costs at the same rate of 5.875% on a 30 year fixed loan, whereas you're paying $6,553 for the same thing!! Do yourself a favor and shop around by getting a Excellent Faith Estimate, check with local credit unions they're generally cheaper in closing costs. Excellent luck.