Posted on: 03rd Mar, 2009 05:29 pm
I was referred to a mortgage company and am reviewing some documents. I'd like an opinion on the rates and fees they've offered. I know the two will differ, but the APR seems to me much higher than the good faith rate. I have a credit score in the 790-800 range for the record. What do you all say?
Good Faith Estimate:
Loan Amount: $123,500 5% 30 Years
Loan Origination Fee - $1235
Appraisal Fee: $375
Credit Report: $30
Tax Related Service Fee: $98
Processing Fee: $295
Underwriting Fee: $350
Flood Certification: $28
Closing/Escrow Fee: $250
Title Insurance: $200
Courier Fee: $50
Recording Fees: $130
Attorney Fees (Doc prep) 1st: $200
Attorney Fees (Doc prep) 2nd: $100
Estimated Closing Costs: $3341
Truth-In-Lending Disclosure:
Annual Percentage Rate: 6.266%
Finance Charge: $147,579.63
Amount Financed: $120,732.41
Good Faith Estimate:
Loan Amount: $123,500 5% 30 Years
Loan Origination Fee - $1235
Appraisal Fee: $375
Credit Report: $30
Tax Related Service Fee: $98
Processing Fee: $295
Underwriting Fee: $350
Flood Certification: $28
Closing/Escrow Fee: $250
Title Insurance: $200
Courier Fee: $50
Recording Fees: $130
Attorney Fees (Doc prep) 1st: $200
Attorney Fees (Doc prep) 2nd: $100
Estimated Closing Costs: $3341
Truth-In-Lending Disclosure:
Annual Percentage Rate: 6.266%
Finance Charge: $147,579.63
Amount Financed: $120,732.41
Estimated Closing Costs: $3341 is approximately 3.6 % of the total amount of loan disbursed.
Don't you think that it is really a high charges compared to other loan processors. You decide yourself. :wink:
Don't you think that it is really a high charges compared to other loan processors. You decide yourself. :wink:
As far as I know, a borrower must be provided with good faith estimate by a mortgage lender according to the laws established by Real Estate Settlement Procedures Act (RESPA). These mortgage fees, also called closing costs, cover inspections, title insurance, taxes and other charges. It is used to compare different offers from different lenders or brokers. However you should note that it is an estimate. The final closing costs may be different. Once you compare it with the offers of other lenders, you will come to know the true picture.
please bear in mind that a truth in lending disclosure is based on the premise that you will make all 360 payments as scheduled, with no variation whatsoever. that means there will be no prepayments, no late payments, no refinance, no sale....no changes at all.
therefore, the annual percentage rate is predicated on your paying every penny of interest that it is possible for that lender to receive on a 30-year payback schedule.
truth in lending is fine - if banks hadn't been lying to folk for years, it never would have come into being. however, beware how much you believe in that truth in lending document. anything you do that accelerates or delays payments will result in it being an obsolete document.
as for the good faith estimate, i look at those fees as reasonable.
therefore, the annual percentage rate is predicated on your paying every penny of interest that it is possible for that lender to receive on a 30-year payback schedule.
truth in lending is fine - if banks hadn't been lying to folk for years, it never would have come into being. however, beware how much you believe in that truth in lending document. anything you do that accelerates or delays payments will result in it being an obsolete document.
as for the good faith estimate, i look at those fees as reasonable.
Thank you. I compared those fees around, but the terminology differed place to place. I knew the APR would differ for that reason, but a difference of 1.26% seemed high to me.
Thanks for the helpful feedback.
Thanks for the helpful feedback.
I have been in the mortgage industry for about 8 years and the fees on the Good Faith are very much in line and very reasonable. But the APR doesn't make sense, when I calculate it I get about 5.2% give or take a tenth of a percent.
when I calculate it I get about 5.2% give or take a tenth of a percent.
yes it is pretty high !! but what any average joe should do in order to avail the good faith?
APR is seems to be taking toll on the simple guys hard earned money.
lets hope Mr. Obama takes some look towards it
yes it is pretty high !! but what any average joe should do in order to avail the good faith?
APR is seems to be taking toll on the simple guys hard earned money.
lets hope Mr. Obama takes some look towards it
that is unfathomable.
I went to a comedy club last night. In retrospect, I should have stayed home and read a few of these threads.
okay, eric...that's twice i got a good laugh this morning.
I am glad I could entertain you George...I will be here all week.
On a side note, since you live in CT....have you ever had a burger at Louis Lunch?
On a side note, since you live in CT....have you ever had a burger at Louis Lunch?
no i haven't. new haven is a whopping 45 minutes away from me! wow!
i'm far more into other fabulous dining delectibles than burgers, though i admit to having the desire for one last week (didn't take myself up on it, though). i think i might have to find one locally. frankly, even with gas prices down, it's just a bit far to go for a hamburger. if i'm down that way, that's different.
i'd love to give a review, but it's not likely to be any time soon.
keep up the good work, eric.
i'm far more into other fabulous dining delectibles than burgers, though i admit to having the desire for one last week (didn't take myself up on it, though). i think i might have to find one locally. frankly, even with gas prices down, it's just a bit far to go for a hamburger. if i'm down that way, that's different.
i'd love to give a review, but it's not likely to be any time soon.
keep up the good work, eric.
Hi webmaster! xiw
yeah, ok, kazelbkp
so nice of people to feel free to express themselves.
i guess that's what we were promised after all in the First Amendment to our Constitution.