check out this mortgage good faith estimate of settlement charges?

Please explain where this looks kosher vs. questionable

No loan origination fee, but

Appraisal Fee: $495

Lenders Inspection Fee: left blank

Processing Fee: $495

Underwriting Fee: $1095

Interest for Mortgage Insurance Premium: 15 days @ $21 per day = $320. I am putting 20% down - do I have to have MI?

Hazard Insurance Premium $968

Closing or Escrow Fee: $450

Notary Fee: $150

Owners Title Insurance $500

Recording $500

Total estimated settlement charges: $4573

Update:

spam reported

Update 2:

Forgot to add: no points.

loan amount @ $175k

Yes I am def. shopping around

5 Answers

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  • 9 years ago
    Best Answer

    What amount are your borrowing?

    The Underwriting fee and Processing fee is the lenders charge. $1590.

    Appraisal fee is a bit high.....should be $350-$450

    Notary fee shouldn't be more that $50-$100

    Recording fee is charged by the county and is based on the sales price or the loan amount on a refi.

    Title insurance seems about right

    Your Hazard Insurance seems very high...shop around for various quotes from insurance carriers unless you have either flood or earthquake insurance included.

    You shouldn't have to have mortgage insurance if you are getting a conventional loan. FHA loans require MI no matter how much you put down.

    Escrows always pad their fees a few hundred dollars to cover any unforseen items, but return the difference at closing.

  • Anonymous
    9 years ago

    I agree with the previous two answers, however, just to point out, I'd guess the Mortgage Insurance is actually the Mortgage Interest. Once you fund, you start paying immediately. This is the per diem interest from the day of funding to the end of the month. Thanks to some recent disclosing changes the origination charges have a variance tolerance of 0%. So in other words the lender fees are set in stone. The "prepaids" which would be things like the interim interest, homeowners insurance, and property taxes have no set tolerance since the lender really has no control over what those costs are and simply estimated them to the best of their knowledge. The fees listed from closing/escrow down are third party fees and may vary only by 10% at the time of closing and are typically regulated by the state. Did you get a Truth In Lending? One way you can comparison shop is to compare APR to APR. I've attached a link to a very easy to understand tutorial on APR and how to compare it. Good Luck!

  • 9 years ago

    You should have three of these to compare. You should not pay a dime to get them.

    Some charges are paid to outsiders and may not be negotiable. Others you can shop for. Any that the mortgage company or bank keeps should get scrutiny.

    Overall, I don't like these numbers. I've never paid a notary fee and I've bought and sold over 125 times. Hazard insurance you can shop for. Do not use any company they recommend without careful comparison.

    Recording fees are charged by the county and are fixed. This one seems very high. Call the county and check.

    Processing and underwriting fees are "junk fees" and can be negotiated. I smell you are working through a mortgage broker. Try your local bank where you have your account.

    You should not have PMI with 20% down.

    Is this for a purchase or refinance? If for a purchase, ask your agent for help understanding these charges.

    You are asking the right questions. Now dig in your teeth and do some serious comparison shopping.

  • 9 years ago

    Fees are about right... no MI required with 20% down. My company charges 1% orig. but we don't charge for processing or underwriting- so you would pay a little more with us. Recording, title, appraisal, notary are based on the loan amount & any lender would charge the same exact amounts. Hazard insurance you could shop for a better deal with different insurance companies- taxes don't change. All in all looks like a pretty good deal to me. Do shop around, you may get a better deal...

    Source(s): 24 years mortgage lender.
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  • Anonymous
    3 years ago

    Interesting, I was wondering the same thing myself

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