Are these good terms for a Mortgage?

Question

GOOD FAITH ESTIMATE/ LOAN DISCLOSURE

Belgrade, MT 59714
2-4 unit property
Date Prepared: 12/17/2007
Sales Price/Value: $170,000.00 30 yr fixed
Loan Mount: $161,500.00
Term: 360
months Rate: 6.250%
Loan to Value: 95%

APPROXIMATE CLOSING COSTS

Approximate Origination fee $0.00
Approximate Discount Fee paid To Lender 0.00% $0.00
Appraisal Fee $450.00
Credit Report fee $0.00
Transaction Fee $1,200.00
Taxes: $150.00
Misc $0.00
Yield Spread Premium paid by lender 0-4% $0.00

TITLE COMPANY CHARGES

Settlement charges (Escrow closing fee) $272.50
Title Insurance/EPL/Location Note $409.00
Recording Fees/Assignments $100.00

Total Closing Costs $2,431.50

MONTHLY BREAKDOWN

1st P&I: $994.38
2nd P&I: $0.00
Ins: $50.00
PMI: $0.00
Dues: $0.00

TOTAL $1,194.38

PREPAIDS

Prepaid Interest from 15 days @ 27.65 /day $414.81
Actual interest is charged from Funding date to end of the month
Estimated tax impounds: 5 months $750.00
Est. Insurance impounds: 14 months $700.00 (Includes the approx. charge for the first year premium).
Less Application Fee Deposit $0.00

TOTAL ESTIMATED PREPAIDS $1,864.81

TOTAL COSTS AND PREPAIDS AT CLOSING $4,296.31

Purchase Price $170,000.00
Estimated charges above $4,296.31
Total (A) $174,296.31

Mortgage Amount $161,500.00
2nd Mortgage $0.00
Earnest Money $0.00
Total (B) $161,500.00

APPROXIMATE CASH REQUIRED/ CASH BACK AT CLOSING (A MINUS B): $12,796.31

I will be living in one of the units!

Answer 1

The GFE (Good Faith Estimate) is a Good Faith only, but the fees look good about right. Your 14 months of homeowners insurance is for the 1 year paid up front (when you pay for 1 year, and bring the insurance binder to the closing table, the lender will be in first position under mortgage holder). The other 2 months will start up your escrows.

I am surprised you dont have PMI for anything over 80 percent. With conforming lenders and FHA (that is still the norm).

Your title charges are in line for the amount of the loan - Looks like you are even getting a break on the Title Insurance. As far as the rate. www.bankrate.com if you are curious about it. Especially being a 2 unit. I would say you you got a deal.

Answer 2

Well for my assuming you are purchasing some units? There are a couple things i would like to say about your numbers there. the monthly breakdown. the 1st. is $994.38 plus the $50.00 insurance you have it at $1,194.00 when it should be $1,044.38. This is the first thing i picked out sorry if it was a misprint. Title charges are very good. They look like standard fees. If it is a home loan you can do a bit better but you are going to payout a lot in fees. Good job on the loan. Best of luck

Answer 3

Every state and every lending institution can have different lists of what is included in closing cost. In Lawton, OK, the transaction fee seems high. Find out what is included in that. It is possible it includes some extra things that are lumped together. We are one of two remaining abstract states, so our closing cost are higher. However, it is best to compare the fees within the local area. What is common in one area might not be that common somewhere else. Watch closely what others charge. You can find that out with a simple phone call to different places. The tax seems very low. It sounds like a lot for the money. Check it out with another lending institution to be sure. Investment properties are usually higher interest, so that seems very good.
There are very few charges, so that is great compared to what I usually see.

Answer 4

6.25 is a good rate for such a high LTV.

No buydowns and no origination, not bad!