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
Total estimated settlement charges: $4573
Forgot to add: no points.
loan amount @ $175k
Yes I am def. shopping around
- Glenn SLv 79 years agoBest 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.
- Anonymous9 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!
- Sharon TLv 79 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.
- Beverly SLv 79 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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- Anonymous3 years ago
Interesting, I was wondering the same thing myself