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I found this forum while looking for some answers that I couldn't get from my lender. Any help would be greatly appreciated.
These are the details:
Home Sale Price: $250,000
Down Payment: $8,750
Up Front Mortgage Insurance: $5,428 (rolled into loan)
Total Loan Amount: $246,678
On the GFE that I received, BOX A (Adjusted Origination Charges) is $3,291
BOX B (All Other Settlement Charges) is $12,773
The MIP of $5,428 is included in the other settlement charges. But if this getting rolled into the loan, why do I have to pay for it at closing? The lender assures me that I am not paying this amount twice and I am open to the fact that this may be somethig that I'm not understanding.
Could somebody please enlighten me on this point? And also, do the closing costs seem high, low, about average?
You only pay the MIP of $5,428 one - you have the choice of paying it out of pocket or financing it into the loan. It is listed on the GFE so if you choose to pay it as part of your closing costs, the lender can say they have properly disclosed you about the fee. If it wasn't listed on there, it wouldn't be able to be charged to you at closing if you did want to pay it out of pocket and the lender would actually have to eat that cost. That is why it is listed on the GFE.
Other settlement charges seem high but you could very well be in a high closing cost state (such as DE, NY or FL), a breakdown of the other settlement charges would be good to have if you were interested in why it is so much. Would need to know the interest rate that is on the GFE in order to tell you if the adjusted origination charges are appropriate.
You are welcome. The fees look appropriate for the loan amount/interest rate you are being offered... some would say the origination charges are a little on the high side.
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