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Profile picture for Frederick1971

So for $235000 mortgage I need 25 grand in my wallet?

Does the below quote seem about right? I got a quote for a mortgage of about $235000 with 3.5% down. Seems really excessive.

You'll need to bring this amount when you go to close your loan. This amount may vary, and your lender may or may not require additional reserves for taxes and/or insurance.
Down Payment
$8,500.00
Lender Fees
$3,810.01
Closing Costs (lender estimated)
$5,321.25
Other Closing Costs (closing.com estimated)
$7,821.69
Estimated Total
$25,452.95
  • September 15 2010 - Largo
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Answers (7)

Best Answer

Right. The lender fees ( 800 section only ) of $3810 should be something like 1% origination, $400 appraisal, $800 underwriting Fee, $250 Processing Fee. The $5321 is your upfront mortgage insurance that is financed into the loan amt. The other part showing $7821 is most likely overstated, it would include your new escrow, prepaid interest, 1 year hazard policy, state and local taxes, Closing Agent ( or Atty ) Fees, Title Insurance/ Other Title Fees, etc. I would guess that last group would be closer to $4,000. Aside from the down payment of $8500 you are probably looking at a figure around $9000. How you handle the $9000 is up to you. Lets say the seller is contributing 2%, or $4700 towards closing, that leaves $4300. If you wanted to keep that money in the bank, the lender could move the rate from 4.25%-4.375% up to 4.75% and pay the $4300 difference, leaving you with only the down payment to pay at closing. If you select one of the lenders you received a quote from, they can give you a worksheet showing a much more refined estimate and also include any seller concession so you know about how much you will need.   
  • September 16 2010
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Profile picture for mymortgagebrokerjoe
Have you closed yet? FHA upfront mortgage insurance has been lowered to 1% of base loan amount (purchase price minus down payment is base loan amount). i can do an FHA purchase with no lender fees and be the lowest rate out there. - joe
  • November 01 2010
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I think there is an error and you should not have the "other closing costs" listed...
I believe that is a mistake.
Sincerely,
Celia
  • September 16 2010
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Profile picture for Frederick1971
I got this from here. The loan calculator that allows you to enter your joint incomes and credit scores etc, it then works out the best rates / agents for you.
  • September 15 2010
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Yes it seems very excessive though you did not indicate interest rate. This would be a good time to get a referral to a local loan officer and get pre-approved.
  • September 15 2010
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That's what happens when a computer is doing the talking. You can close that loan bringing $8225 to closing, if you want.
  • September 15 2010
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I would definitely request another quote from a different lender (don't let them run your credit) and then compare the two.

Good Luck!
  • September 15 2010
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