going off another mortgage post, I'd like advice on the GFE (Good Faith Estimate) I received from our Mortgage Broker Today. We're first time buyers and will be putting down ($12K) on a $220K home, financing $208K. Something I found wierd, using the assumption of a $200K principal, the monthly payments were lower if we went FHA @ 6.25% paying $86/month PMI and having $2,964 for Mortgage Insurance premium tacked on to the principal that going convential with an 80/10/10 plan @ 6.5%. The difference was only $35/month in favor of the FHA. anyhow, here's the GFE for the 30yr FHA: Rate: 6.25% Loan Origination: $0 Processing Fee: $300 Application Fee: $295 Committment Fee: $465 Flood Cert: $23.50 Closing or Escrow Fee: $250 Title Insurance: $250 Recording Fee: $100 (BROKER CREDIT) -$500 Estimated Closing Costs: $1,683.50 - ($500) = $1,183.50 *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- - Items required by Lender in advance - Interest for 15 days @ $34.82/day : $522.30 Mortgage Insurance Premium: $2,964 *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- - Reserves Deposited with Lender - Hazzard Ins 2months : $100 Mrtg ins Premium 2months : $170 Taxes and Asstmnt 2months : $500 Estimated Prepaid Items/reserves: $4,256.30 Total estimated Settlement Charges: $5,439.80 What do you guys think?
It really depends upon where you live (or where you're buying the house). Closing costs vary greatly from state to state. It would look good to me, but then where I live we have some of the highest closing costs in the country (or so I've been told).
