No, @Damilola Adedji , I don't think you are--with the caveat that rates and terms are very dependent on your qualifications.
I'm seeing rates below 4% with no points. You're paying almost $1k in points, $1k application fee (a lot of lenders will waive or reduce this, all you have to do is ask). That $700 in PMI to tough. Anyway you can put a full 20% down? This is a very small loan, not a ton of cash to come up with.
I'd do a lot of shopping around. Talk to all your local banks and Credit Unions. Don't be afraid to play lenders off of each other.
Thanks for the reply. This is my first starter house. I just want to make sure i don't get screwed. I am using FHA loan.
P.S I am buying the house from my dad.
Can u advice me on the questions to ask? Thanks
As I wrote in my first post, @Damilola Adedji , shop around. Call all the local banks and Credit Unions. Then compare and see what's what. If you can use something other than a FHA loan, that's worth considering. With FHA, you have PMI for the length of the loan. It doesn't drop off when you hit 80% LTV. Lots of banks have low-down payment products that are not FHA. Worth exploring.