High closing costs.

High closing costs.

Member since 2022 · 4 posts · 4 votes

Do these closing costs seem high to anyone

Loan amount is $131,000 at 7.5% interest with 25% down.  

~$11,000in closing costs: 

4.4% points ($4,500)

$1500 underwriting and processing

$700 appraisal and credit report

$1300 in title related charges

$1000 in taxes

$1300 in pre-paid

$800 in escrow

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Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
3y

Why are you paying 4.4% in points? That seems quite excessive for a loan of that size. 

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  • Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
    3y

    Why are you paying 4.4% in points? That seems quite excessive for a loan of that size. 

  • Member since 2022 · 4 posts · 4 votes
    3y

    I'm new to all this. What would you recommend? How would I negotiate that down? 

  • Member since 2022 · 4 posts · 4 votes
    3y

    Sorry it's 3.4% points. I will edit the post.

  • Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    3y

    @Ryan Muska has hit the nail on the head. All of the amounts seem reasonable. I would keep shopping for financing and find out who has a better deal on a decent interest rate without paying such a high fee (points.) You may need some help evaluating how long it takes for the cost of the lower interest rate to pay for itself and then chose the right upfront payment and interest rate that makes the most sense.

  • Wyatt WolffPro Member
    Lender · Charlotte, NC · Member since 2019 · 467 posts · 278 votes
    3y

    Points and fees seem high. Ask your lender to explain it to you. If they can't, shop around 

  • Investor · Hopedale, MA · Member since 2021 · 321 posts · 212 votes
    3y

    8.3% is a little high, i think the average is 2-3%. it's the points that killed you. if you're using a mortgage broker or buying down your rate, that'll do it. in many cases it's totally worth paying for those two things (a lower rate and a great broker). ask the seller to pay the points!

  • Lender · The Woodlands, TX · Member since 2023 · 5 posts · 0 votes
    3y

    @Robert Jan Thomas Hiensch

    Yes, a mortgage broker is going to charge a few points because they’ll typically bring more options to the table, but 3.4% def seems rather high for. Also, if you’re putting 25% down you can waive escrows and avoid paying taxes, prepaids and escrow amounts at closing.

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