Question about including prepaid insurance in calculations

[Daniel Soovajian]

Hello,

When plugging in #s into the "purchase closing cost" section of the BP rental calculator, you can click the "cost breakdown" link on it to plug in specific components (e.g. points, taxes, hazard insurance, etc.).

The loan quotes I've received all include 12 months of prepaid hazard insurance. But if I'm including a year of insurance as an up front closing cost, when I get to the expenses section of the BP calculator and I'm plugging in another $75 estimate for monthly ongoing insurance costs, aren't I effectively double counting my insurance costs for the first year? 

One other question: the BP calculator says that I should estimate $1500 - $2500 for closing costs, but I've received 4 quotes from different lenders and for a loan with 0 points, their closing costs all come in between $3800 - $4500 (plus an additional ~$2300 for prepaid expenses). Are the quotes I'm receiving just not that competitive or am I missing something here? I received these quotes from a mix of small to larger sized lenders in TN.

Thank you!