Closing cost estimate is double what was expected (9% of purchase price). Is this right, and is anything negotiable?

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5269 is right around 3%. What loan is this? FHA? Or VA?

johnny_fives_555

The $5K is what’s throwing this off. So we def need more info on what that’s for I recommend you put all this in a spreadsheet so that it’s easier to make sense of what’s what when you review the disclosure statement Also 4.5% seems really high, is that what you were expecting?!?!

AdditionalAttorney

Navy Federal doesn’t charge PMI, but they build into their rate. You need to put 30% down to get their best rate. The 4.5% over the term of the loan is a function of your down payment, and you can never get out from under it if you don’t refi – just a little clarity on that piece.

SoberBarney

I also zeroed in on the $5k of “additional costs” i would ask your loan officer for an explanation. All the other costs seem pretty standard. The origination fees i have seen are closer to 1%, so that’s a little up there. I recommend: 1. asking about the additional costs. 2. call a couple other credit unions and get a quick quote over the phone. Any reputable mortgage place can give you a quote in 15 min over the phone. Also, dont trust your realtor. They aren’t bad people, but they are only interested in getting you to sign so they can get their commission. Their interests are NOT aligned with yours. Most realtors are honest and try to do a good job, but its prudent to be skeptical with what they say simply because they have different goals (commission) than you (lowest price). Congrats on finding a home and good luck!

manookings

3% down would be a $4800 down-payment on a $160k conventional mortgage. Over the life of the loan, with a 4.5% interest rate, you’d end up paying almost $50k more in interest over 30 years over a comparable 3.0% APR loan which you could definitely get, if not better. Even paying PMI on your loan should only be about $65-80 a month until you either refinance or pay down to 79% LTV. This Navy Federal loan is highway robbery. Please look at a conventional lender’s rates before you make any decisions. 0% sounds great, but there is always a cost. In this market, it would be insane to pay $14k in closing for a loan of that size AND get a terrible 30 yr APR.

sweetnjoe