Mortgage Rate with FICO 769

oh and there is PMI- it is listed in the reserves for 2 months under mortgage insurance.

 

Kara

Most lenders require that LTV be between 75-77% before releasing from PMI or a yr, whichever comes first. You normally will also have to pay for an appraisal to show that the home has reaached that level.

Are you aware that PMI is not tax deductable and that the interest on the first 100K is schedule A tax deductable and the rest should be able to go on schedule C, unless your income is over a certain amount? I would recommend that you check with your tax advisor as well to check and see what they would suggest tax wise.

Before I could give you or anybody any suggestions concerning what type of mortgage to get, I would need far more information than what should be posted on a public board. Some of the things I would want to know are things like:

1) How long are you planning to be in the home?

2) What are you trying to accomplish, other than
home ownership?

3) What type of asset base do you have?

There is alot that needs to be taken into account when trying to help someone find and secure the mortgage that fits them best.

While underwritng and processing fees are generally paid to the ultimate lender, what is your broker doing to earn the origination fee and what other fees is the broker getting on the back end? Also, is your broker charging you an application fee?

Also, when I just reviewed your post listing fees again, I saw a couple of other fees that I might question the amount on. I will post those seperately after doing a bit of research to verify my thoughts.

Good luck with your mortgage.


fla-tan

 

I can tell you right now that you should never pay origination fee. That is a total rip. That is a bogus fee, even though a lot of brokerages charge that. You can do without that. When I got my mortgage, I paid no points and no origination fees. What is your timeframe? And did you go to bankrate.com. That is the site that I used and found my broker. And you don't have to go with someone local. Another thing is ask the broker what all the fees mean so you have a better understanding of what you are paying.

 

fla-tan,

we are planning on staying in the home for many years, we have no other motives for the house other than to build equity and get away from renting. We have a alot of write offs for taxes so it isn't a big concern. I am not sure what the broker is getting on the other end but she "claims" they can give me the best sinceshe is not commissioned and paid by the builder. Is it a good idea to go with someone closely associated like that. I would be more than willing to go somewhere else. I have already paid for the appraisal though.

Kara

 

I just looked at the "Estimate of closing costs" the broker sent me that breaks it down who gets paid what and it shows the origination fee and the processing fee to be paid to the broker and the rest going to the lender. So tell me for those that beleive an origination fee is not necessary, how does the broker get paid unlesss he ups the % of interest. Are there brokers who really give you the "lowest" rate and not charge an origination or point, etc? For instance Eloan claims to have "no fees". Well that have to get paid someway and their rates are pretty low, so how do they do it?

Kara

 

Kara

Mortgage people should NEVER paid by the builder. Real estate people are though and that is ok. I am in the mortgage business and I also generally charge an origination fee, but I don't normally charge most of the other "broker" fees. I am all for mortgage people making reasonable profit for their work as that is what I do. I am not in favor of them making unreasonable profits. Before I could state which way your broker is going, I would need to see the Good Faith Estimate and Truth-in-Lending Disclosure.


fla-tan

 

So what are origination fees used for? Are they a valid fee? And why do some brokers charge that and others can do your loan just fine without it?

 

good question suedan! They have to be paid somehow so if they say they don't charge fees than how do they get paid?

Kara

 

why are you paying so many points? Is it for a really low rate?

Kara

 

Your closing costs are OUTRAGEOUS. I have a FICO in the low 500's (so embarassing) and my closing costs on a $90K loan are a staggering $6K but yours is much more. That doesn't makes sense since your FICO is awesome. Go figure...I would complain to the loan company about the closing costs.

 

Kara,

If you do go ahead with a 90% LTV loan, make sure your lender allows you to drop PMI after you produced a high enough appraisal that drops your LTV below 80%. Because, if your lender doesn't accept the appraisal, you'll need to refinance and by that time interest rates are probably higher than now and will eat up your PMI gain.

Personally I'd go with a 80/10/10 loan to avoid PMI since it's not tax deductable. My new house in the Central Valley will be ready in 30 days and I'm doing a 80/15/5 loan to avoid PMI.

Mike

 

AUX

I am curious I am starting the new home purchase process in SO Cal, Corona area and have until tomorrow to find a lender other than the builders lender (Wells Fargo). I am just curious if you are in the same area and how close in circumstances we are in.

 

Aux,

These are the ones I have come up with as "pure crap fees"

Points (there is no reason to pay points w/interest rates so low)
Processing fee - $995 What the heck are they processing?
Online application fee
Tax service fee
Signature fee
Courier/mail fees

Hon, they are trying to get one over on you. There is no reason the fees should be this high or outrageous.

Dani

 

mephisto,

The only reason I want to go with a 90 LTV is because the rate is alot lower(6.125) and after a few years and my LTV goes below 80 I will have a lower rate with out the PMI, but if I go with the 80/10/10 at a higher rate(6.625) I will always have the high rate no matter. Seemed more logical to me with the market the way it is and housing prices rising so fast.

Kara

 

http://www.arader.com/

 

On 7/26/02 I closed on a house with a median score of 655. 95,000@6.5 for 30 years, 20% down.

My final closing fees were:

Origination Fee 760.00
Appraisal Fee 300.00
Credit Report 18.00
Processing Fee 250.00
Document Prep 100.00
Flood 25.00
Tax Service 60.00
Underwriting 450.00
Interest 81.18
Insurance 490.00
Title Fee 229.08
Title Insurance 209.13
Courier Fee 45.00
Wire Fee 20.00
Recording Fees 60.00

I barked about the processing and underwriting fee, but to no avail. I really didn't want to start over at that point, what else could I do?

Now I am looking to Equity Loan some of the money back, (argh! borrowing my own equity back!) at 8.5 over a 10 year period.

 

Your lender is ripping you off, charging 0.5% more for a 80/10/10 loan unless the 2nd loan of 10% is also at the 6.625% rate. I locked my 80/15/5 loan in yesterday at 5.25% for a 5/1 ARM for the 1st loan of 80% and will have a 2nd loan in the 7% range which I'll refinance within 6 months anyway. He quoted me 6.25% for the 1st loan, no matter if its for the full 95% or 80% only.

Mike

 

AUX

The fees that I would most strenuously object to are:

Points $4500. That is 2.5 points...to high by 1.5
points if an origination fee...2.5 points
if discount points to buy the rate
down.

Processing Fee $995 What is included in this fee?

Escrow Fee $660. Why are they charging you to hold
your own money in escrow? Or is
this the fee allowing you to waive
escrow?

Signing Fee $150. ???????What is this fee?

Courior Fee $100 That sounds about $50 to high to
me, but it may be right for NY

Also where are the real estate taxes and monthly HOI premium, where are the state doc stamps, where is the NY mortgage tax fee?


It definately sounds to me as if you are being over charged in many areas.

I hope that I have given you some food for thought. A mortgage is not a positive if the fees are way to high and it sounds that way to me.

Good luck.


fla-tan

 

Does anyone know how the reserves are figured out and how many months of taxes, PMI, an homeowners are required by which month you close in?

Kara