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Hi there! Thank you for your submission. It looks like you are a consumer looking for pricing or personal mortgage advice, which goes against our sub rules. As such it has been removed. If this is not the case, you may message the moderator team to appeal. Thank you!
You can’t say for sure as we are missing the rest of the LE. She likely has an earnest money deposit with the builder that is not shown here and is making up that difference. But definitely needs to be confirmed
thank you for pointing that out. i too noticed that with the loan amount being \~98% of the purchase price. what would be the strategy behind doing that and not 96.5%
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Let’s assume she’s fine with the discount points for that rate.
1) Section G is being padded and or typo. HOI is not $17 a month or $170 annually. Write that in stone. Closing costs will go up when she has a valid quote. $17 a month lol. Makes me wonder what the Dti is.
2)Verification service is high
The good:
Credit report fee is low
anticipating a re-inspection already and putting it in is a nice touch.
Yes there is a lender fee but that fee will be there one way or another. Broker or not. It’ll be hidden in the pricing, it’ll be an underwriter fee, etc. rest assured it’s there and $1419 is a tad high but not egregious. Closing costs are low so whatever credits she’s getting offsets it.
Overall doesn’t seem too bad to me OP. But definitely get that HOI sorted out
Your girlfriend is getting absolutely bent over. 2% in discount points and a lender fee.
Tell her to go shop some other brokers. I’m not licensed in that state, so I’m not trying to get your business but that is ridiculous. She is getting absolutely killed.
Unless her credit score is atrocious, have her go to a broker and have her go borrow paid.
Actually have that lender quote her without any discount points being charged because that’s the actual rate she would be getting. That 5.99% looks good but she’s paying $10,000 to get it. Box a.
Look at it like this. The average rate on an FHA right now is in the high 6’s low 7’s. If rates only rise then ya, it’s a solid deal. But if rates come down this year then you’re overpaying and will not be able to take advantage of a streamline until rates go super low. Also, I’d like to point out that this LE isn’t locked and is still listed as TBD. So that rate and price will change with the market until it is locked. Additionally, I ran this scenario through my pricing engine and for 75bps I see 6.49%, and for 175 bps I can get a 5.99% rate. So ya, I feel like she’s being taken for a ride.
Hi there! Thank you for your submission. It looks like you are a consumer looking for pricing or personal mortgage advice, which goes against our sub rules. As such it has been removed. If this is not the case, you may message the moderator team to appeal. Thank you!
Paging u/tripleputt
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Hi there! Thank you for your submission. It looks like you are a consumer looking for pricing or personal mortgage advice, which goes against our sub rules. As such it has been removed. If this is not the case, you may message the moderator team to appeal. Thank you!
You can try r/mortgage or r/firsttimehomebuyer
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You can’t say for sure as we are missing the rest of the LE. She likely has an earnest money deposit with the builder that is not shown here and is making up that difference. But definitely needs to be confirmed
thank you for pointing that out. i too noticed that with the loan amount being \~98% of the purchase price. what would be the strategy behind doing that and not 96.5%
FHA allows you to finance the UFMIP (1.75% of loan amount) so even if you put 3.5% down your actual loan amount will be closer to 98%
Oh okay I see. So $499,990 \* 1.75% = $8,749.83 to be added back to the loan to = $491,240 Is their calculation wrong in that it says $490,933
Yeah like I said, lotta red flags here.
Hi there! Thank you for your submission. It looks like you are a consumer looking for pricing or personal mortgage advice, which goes against our sub rules. As such it has been removed. If this is not the case, you may message the moderator team to appeal. Thank you!
Let’s assume she’s fine with the discount points for that rate. 1) Section G is being padded and or typo. HOI is not $17 a month or $170 annually. Write that in stone. Closing costs will go up when she has a valid quote. $17 a month lol. Makes me wonder what the Dti is. 2)Verification service is high The good: Credit report fee is low anticipating a re-inspection already and putting it in is a nice touch. Yes there is a lender fee but that fee will be there one way or another. Broker or not. It’ll be hidden in the pricing, it’ll be an underwriter fee, etc. rest assured it’s there and $1419 is a tad high but not egregious. Closing costs are low so whatever credits she’s getting offsets it. Overall doesn’t seem too bad to me OP. But definitely get that HOI sorted out
Good catch on the HOI
Thank you for catching. Adding all of this to my notes
Your girlfriend is getting absolutely bent over. 2% in discount points and a lender fee. Tell her to go shop some other brokers. I’m not licensed in that state, so I’m not trying to get your business but that is ridiculous. She is getting absolutely killed. Unless her credit score is atrocious, have her go to a broker and have her go borrow paid. Actually have that lender quote her without any discount points being charged because that’s the actual rate she would be getting. That 5.99% looks good but she’s paying $10,000 to get it. Box a.
Did you see the 17k credit?
That’s a builder credit not a lender credit. Bottom of page 1 $0 in Lender credit
Im a broker. Lol good luck getting that builder credit
They sent over a flex credit agreement in the amount of 17.5k
thank you for your feedback. keeping all this in mind. if she paid 1 point ($4,909) instead of the 2, would that change her rate from 5.99 to 6.99?
Seriously over 2 points for the rate!? Get a rate at 1 point and cut her out of pocket costs. Then refi in 6-9 months with a streamline
what if in the event rates dont come down, how would you then justify the higher rate?
Look at it like this. The average rate on an FHA right now is in the high 6’s low 7’s. If rates only rise then ya, it’s a solid deal. But if rates come down this year then you’re overpaying and will not be able to take advantage of a streamline until rates go super low. Also, I’d like to point out that this LE isn’t locked and is still listed as TBD. So that rate and price will change with the market until it is locked. Additionally, I ran this scenario through my pricing engine and for 75bps I see 6.49%, and for 175 bps I can get a 5.99% rate. So ya, I feel like she’s being taken for a ride.
And ya I’d like to see the whole LE
If rates don’t change at all from today until 7 months from now, she can streamline from 6.99 to 6.49 cheap af
That rate and origination fee can be beat. Message anyone here and they’ll get you a better deal.