Hey can anyone tell me if this looks ok. my scores are 589,586,612 Base Loan 85,500 Total loan 86,782 Interest rate 6.75 FHA fixed 30yr 801 Origination Fee 855.00 803 Appraisal Fee 375.00 POC 804 Credit Report 25.00 809 Rate Lock 300.00 812 Underwriting Fee 385.00 813 WV Residency Fee 5.00 901 Interest 240.75 902 Mortgage Insurance Premium 1282.50 1001 Hazard Insurance 41.67 1002 Mortgage Insurance 35.45 1003 City Property Tax 41.67 1008 Escrow Aggregate Adjustment 0.02 1101 Settlement or Closing Fee 550.00 1102 Abstract or Title search 600.00 1103 Title Examination 295.00 1108 Title Insurance 347.13 1201 Recording fee 200.00 1204 Environmental Lien Endorsement 25.00 1301 Survey deletion endorsement 50.00 1303 Courier 75.00 1304 Flood cert - US determination 9.00
They are making a ton off of you here. You are only seeing a 1% origination fee, which is standard, but that rate of 6.75% on an FHA loan means they are making atleast 2 points in yield spread from the lender. Plus that "rate lock fee" of $300 is ridiculous. Im a mortgage broker btw. FHA rates are around 6.0% currently. Your loan size is small so the broker is probably getting an increase in rate for that as well as for your scores, but not nearly enough to justify 6.75%. You should ask them to show you a copy of the rate lock and what "price" they are getting your rate at.
It really depends on where the poster is buying. Many of these fees vary by area or state. For example, some states require settlements to be conducted or reviewed by a lawyer. That's more expensive than a title company doing it. So you have to find out what is "usual and customary" for the area where you're buying.
This is true as far as the closing fee is concerned. And btw, rates absolutely hit the fan today...gone up over 1% in the last week...ridiculous!... So now 6.75% is pretty close to par for your situation it sounds like. Even if you called other lenders/brokers for rates today you would likely not get anything better. But if you broker locked this last week or before they are getting paid several points in yield on it. Too bad that the ship has kinda sailed on shopping around for now if you are under a closing deadline. We are not locking anything today. In this market rates are extremely volitile, who knows what they will be tomorrow?!
More than the closing fee can be state or location specific. Things like inspection fees and appraisal fees also vary with location, as well as title fees, insurance and taxes.
Yes, all your pre-paids are subject to vary a good bit depending on area. But if your broker locked this a week or more ago he/she is getting a big paycheck on the back end on the rate from the lender. I would ask them to lower or eliminate their origination. But keep in mind, if they are smart they know that rates have gone up significantly and that you cannot go elsewhere to greatly improve your rate today, so they might call your bluff. But ive never ever heard of charging a $300 lock fee!...I would be pretty upset with that one and demand they eliminate it. It cost them nothing to lock your rate...certainly not $300!
