New GFE for refinancing comes up with $24K (settlement fees) for $144K mortgage

cbsmortsrch
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FICO 813, LTV <20%, Orig applic, was for $155K (to include $100K payoff old 7/1 ARM, hoped for $45K cash out, and roll-in $10K est. for settlement costs. Bank wants to lower it to $144K, $20K cash out, and $24K GFE. I understand new rules req. "worst case scenario" but the estimate include $8,250/yr for liability/damage insurance. I'm in a large condo in NYC, already pay for bldg's master policy in my monthly charges. I noted in appl. I wanted to do modest $13-16K renovation (replaster, paint, new hardwood floor.) Did this adversely effect GFE. Is this standard practice?

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July 05 2010 - Upper West Side

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Chris Jones, "Christopher Jones"
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These days? There is no such thing as "usual". Lenders are now required to eat the difference between our estimates of your closing costs (even including the SELLER'S title fees) and the actual costs at the end of the day. Many, many lenders are therefore opting to guess as high as possible, then double it, to avoid having to pay. This makes the GFE even more inaccurate than the government requires it to be, but that's what happens when you start tinkering.

No doubt this is not what the government intended with RESPA reform. The government should have at least someone in it that has had origination experience, then.

That said, it sounds to me like the closing costs are pretty high, all things considered, and I might advise you to get a second opinion.