I was wondering if anyone out there in "cyberspace" would have any
interesting observations, or offer any feedback on this Good faith
estimate. Is $4K normal for closing costs on a refinance? fico was over
720, no prepay on this loan, stated income, 7year fixed arm. LTV is
about 75%. To me $4K closing doesn't look quite right.

Thanks for any feedback.


btw: can I attach the GFE here or not?

Thanks

In article .com,
"davi" wrote:

I was wondering if anyone out there in "cyberspace" would have any
interesting observations, or offer any feedback on this Good faith
estimate. Is $4K normal for closing costs on a refinance? fico was over
720, no prepay on this loan, stated income, 7year fixed arm. LTV is
about 75%. To me $4K closing doesn't look quite right.

I couldn't see all the details, but it looks like you are
getting a $450,000 loan for only $4500 in closing costs?
That is only 1% of the loan. That is an outstanding deal,
a once in a lifetime bargain.

Normally, loans have a 1% to 1.5% loan initiation fee up
front. Then you pay 2% to 3% more for the other junk fees.

Note that there is no prepaid interest in the total. That
assumes that you close on the last day of the month (or
maybe the first of the month). Be careful--if you close
any other day, you might have to pay up to $2000 more in
prepaid interest as part of closing costs.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708
Newave Communications http://www.johnweeks.com
================================================== ====================

3. John A. Weeks III Feb 3, 7:50 am
"I couldn't see all the details, but it looks like you are
getting a $450,000 loan for only $4500 in closing costs?
That is only 1% of the loan. That is an outstanding deal,
a once in a lifetime bargain.

Normally, loans have a 1% to 1.5% loan initiation fee up
front. Then you pay 2% to 3% more for the other junk fees. "
"

If you've been paying 3% to 4.5% in loan initiation and junk fees, then
you've been getting screwed. There are plenty of zero point loan
programs available, where the major fees incurred are typically an
application fee of and appraisal fee, which total about $700. They
might hit you up for some junk fees like an attorney review fee, or
excess charges for delivery service, etc. But those should only amount
to another few hundred bucks, not 4.5% of the loan.

The big thing that can add to closing costs is buying the interest rate
down by paying points, but that certainly isn't a junk fee, nor does it
necessarily make the deal a good or bad one by virtue of there being
points. If you think you might move in a couple years, then points are
a bad deal. If you think you'll stay there for 15 years, then points
can be a good deal. However, in general, I think you are better off
avoiding them and just taking the slightly higher rate.

The rest of the closing costs, things like tax escrow, paying the
mortgage amount that will accrue before the first regular payment,
title insurance update, recording fees, etc, are normal costs with any
closing.