2007-11-08 16:16:00 · 12 answers · asked by ob2254 1 in Business & Finance ➔ Renting & Real Estate
That seems a bit high. I would normally expect costs of about 2% unless you have to pay some points to get your mortgage.
2007-11-08 16:22:55 · answer #1 · answered by Anonymous · 0⤊ 1⤋
You really need to break down the $6,000. Anyone that makes a judgment based on just the dollar amount ($6,000) is responding on emotion. You really need to break down the closing costs to find out if it’s too much. Does your closing cost include an impounded account? If you have your taxes and insurance included in your monthly payment, this will inflate your closing costs. Depending on the timing of the transaction, you will have 6-9 months of the monthly payment in an escrow account in the event that your property taxes or your insurance increases at any time. Does your closing cost include any debts or liens being paid with the loan? This will also inflate your closing costs. After this, break down the other fees. Your closing costs will include pre-paid interest which in part of any loan due to paying a mortgage in the rears. It also includes title/escrow fees which are very close in costs regardless of what company your mortgage company uses. Keep in mind by law, you can pick which company to use in the event that you know of one that charges very low title/escrow fees. You also have county recording fees. This fee is dependant in which county you live in. Finally, where you need to really pay attention is the fees charged by the mortgage company. This is the top section of the "good faith estimate". Do not move forward without one being provided. In this section many companies charge what is called "junk fees". These are fees that are giving names without merit to add cost to the loan and create revenue for the mortgage company. Last but not least, and the most important item......the ORIGINATION FEE or BROKER FEE. This is the cost the mortgage company charges you for doing business. This amount is presented in a % (ex. 1% , 2%, 3%) and not in a monetary amount. With so much competition and the number of mortgage companies available to do your loan, I would not pay more than 1% of origination or broker fee. 1% is a fair price and if your current mortgage company balks, walk away. They are many companies that will do the loan for that amount.
2007-11-09 01:15:31 · answer #2 · answered by SpanishJuly 2 · 0⤊ 0⤋
It depends on what it covers and whether or not you are paying points to buy down your rate. It sounds like you could probably do better, especially if you go with a no-fee direct lender. That is a new trend in the market due to the competition
You should check out Mortgage Zapper - the 2nd opinion mortgage service offering no-fee / low fee loans.
2007-11-10 02:04:03 · answer #3 · answered by Anthony 3 · 0⤊ 0⤋
it is a bit high. On a usual basis, the closing costs on a deal should not exceed 3% of the purchase price. However the law states that you may ask or recieve a Maximum of 6% for closing costs whether you use all of it or not. 3% of $150,000 is only $4,500. Besides ask the seller to pay for it. It's a buyer's market. he'll cave.
2007-11-09 01:18:52 · answer #4 · answered by Mr. Brightside 3 · 0⤊ 0⤋
Again posters make assumptions with out the facts.
It depends: where are you, what is the purcahse price, what is included in the closing costs?
If the $6,000 is points then YES it appears high.
But if it includes points, transfer taxes, prepaids, and other fees, then it maybe ok.
More information before someone can give an answer
2007-11-09 00:39:09 · answer #5 · answered by Anonymous · 2⤊ 0⤋
There isn't enough information here to answer the question.
There are a ton of factors involved in closing costs. If you have a good fiath estimate in front of you that outlines the costs, and there are alot of BS fees: transmission fees, document fees, overnight fees, underwriting fees, then you are probably too high.
It doesn't hurt to look at other lenders to see what they would charge.
2007-11-09 01:03:07 · answer #6 · answered by godged 7 · 0⤊ 0⤋
No. But if its a purchase you could ask the seller to pay for all of the closing cost since its a buyers market or at least 1/2.
2007-11-09 00:24:16 · answer #7 · answered by Non 1 · 0⤊ 1⤋
depends on what state you're in.
in FL they have state tax/intangible that is around 800-100 for your loan amount.
you also need to subtract the prepaids/escrow as it shouldnt count towards closing costs
2007-11-09 16:47:07 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It seems high if it is just points, unless you are putting up extra $ to buy a lower interest rate
2007-11-09 03:25:01 · answer #9 · answered by peter n 3 · 0⤊ 0⤋
Well, it depends...how much are the taxes? Are they included in that figure?
If not, yes, it's out of the ballpark.
2007-11-09 00:55:28 · answer #10 · answered by Expert8675309 7 · 0⤊ 1⤋