Posted on: 05th Feb, 2008 08:53 pm
What is estimate closing cost for a 30 year fixed mortgage of $300,000. 5% down. $3,600 yearly tax. $1,000 annual insurance. I want to determine which company to go with but the good faith estimates have different closing cost? Please help
Padawan.......There really isn't a way to answer that question......the reason being costs vary from state to state.......The only thing you want to compare is the 800's section of your GFE.......feel free to post them here is you would like them to be critqued.....that is the only area the lender or broker actually controls.
Look at 4 things - final loan ammount, the interest rate, the payment, and money if any that you need to bring to closing
There is alot of ways to move around and conceal fees and to get the GFE to look different.
If someone offers lower fees but says you have to have a higher rate that means they reduced your fees by selling you higher rate and getting more money from the bank.
If someone offers lower rate but now you have to pay discount points then its the other way around.
If someone has low rate and low fees but the loan ammount is 5k higher then needed on the GFE expect 5k in fees that a broker "forgot" to tell you about or they are not part of "his" closing costs so he didnt count them.
And if 2 loans are the same the payment should be the same.
Deal with the person you trust and make sure to double check their math and to keep records of things they propose for you.
There is alot of ways to move around and conceal fees and to get the GFE to look different.
If someone offers lower fees but says you have to have a higher rate that means they reduced your fees by selling you higher rate and getting more money from the bank.
If someone offers lower rate but now you have to pay discount points then its the other way around.
If someone has low rate and low fees but the loan ammount is 5k higher then needed on the GFE expect 5k in fees that a broker "forgot" to tell you about or they are not part of "his" closing costs so he didnt count them.
And if 2 loans are the same the payment should be the same.
Deal with the person you trust and make sure to double check their math and to keep records of things they propose for you.
