Am I getting ripped off with my closing cost?

Question

Grant Rothenburger · Answer

@David Coronado Shop around a little and see what other banks will do. Local banks are usually more flexible, but they typically have higher rates and fees.

Jenny Wall · Answer

I have done several loans with castle and Cooke . They don't charge origination fee. All they charge is $1495 to originate and processing the loan , then you have the title company transaction expenses , pretty standard and the amount to escrow account ( property tax etc). Their rate I thought is very competitive. I am very happy with them so far . If you want their contact , PM me

Sam Shueh · Answer

W/o specifying the amount of loan and downpayment, credit info it is hard to tell. Fixed 30 year, ARM?

Zachary Bradshaw · Answer

I would get a quote from a different lender.  I think you could get your closing costs down quite a bit lower than that.  If you want me to give you a quote you can PM me.

Tom Gimer · Answer

Re the Title Fees ... it depends on the loan amount (to calculate the title insurance premium) and what, if anything, the title company is responsible for doing in connection with each construction draw.

Blair Poelman · Answer

The amount that a title company can charge for title insurance is fairly regulated, so you're probably getting a market rate for the policy.

The actual "closing cost" is usually a line item on the settlement statement, sometimes called the Escrow fee. Some companies will charge a flat rate, or will charge a set rate per $100k of transaction amount - or will charge whatever they want...

Many of the other line item fees are just passed on at the face value of (or close to) the actual cost of the service, while some are pretty subjective - like "doc prep fee" could be $45 with some, $95 with other co's.

You can shop and negotiate many of these costs, some you can't, but $8565 does seem a little bit high on a refi.  You could probably push back and get that knocked down a couple hundred bucks (but I wouldn't expect it to go down to 6k)

Edward B. · Answer

@David Coronado,

When shopping mortgages you need to compare the lender fees. Used to be the 800 lines on the HUD, I'm not sure what it is with the new docs. Point is, though, that title fees, recording fees, and prepaids will mostly be the same. In the case of prepaids, that's your money so it will either go toward your legitimate expenses (taxes and insurance) or you will get it back.

In your example the lender fees are the origination fee and maybe the closing costs. I can't tell on the latter without seeing the actual breakdown.

Am I getting ripped off with my closing cost?

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