Mortgage fees- Is this reasonable?

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omega
Posts: 36
Joined: Wed Feb 01, 2017 9:38 pm

Mortgage fees- Is this reasonable?

Postby omega » Thu Feb 16, 2017 4:28 pm

Hello all,

First time home buyer here and currently looking to buy in NJ/NY area.

Our budget is around 700K with 20% downpayment (140K). Loan is about 560K, 4.25% interest for 30 year loan

We have a contacted a mortgage broker who quoted the following fees:

Origination costs: None

Third party fees:
Appraisal fee - 450
Credit report fee - 35
Flood plus tax service fee - 76
Attorney fee - 1200
Title/Owner policy - 3185
Clsg agent fee - 325
Survey (if applicable)- 795
Recording fee - 250
TOTAL - 6316

Escrows:
Ho ins and MI reserves - 200
Taxes- 2 to 3 mon - 4000
TOTAL -4200

Prepaids:
HO one year premium - 1200
Per Diem Interest 15 days - 979.08
Property Tax - 4000
TOTAL - 6178.08

Housing payment:
Principal & Interest - 2754.86
Property tax - 1333.33
HO INS - 100.00
TOTAL- 4188.20

Are we getting a good deal? Is there any item we could negotiate?

Thank you in advance for your time and comments.
Last edited by omega on Fri Feb 17, 2017 11:16 am, edited 1 time in total.

nps
Posts: 405
Joined: Thu Dec 04, 2014 10:18 am

Re: Mortgage fees- Is this reasonable?

Postby nps » Thu Feb 16, 2017 8:20 pm

You could try getting out of escrow. I don't notice anything out of whack except attorney fee. Does NJ require an attorney for RE transactions?

As far as what's missing, I don't see title insurance but I'm sure your bank requires it and you probably want an owner's policy as well.

Cigarman
Posts: 215
Joined: Fri Jul 12, 2013 5:12 am

Re: Mortgage fees- Is this reasonable?

Postby Cigarman » Thu Feb 16, 2017 8:27 pm

Have you looked a no closing cost loans? Rate is slightly higher but typically if you stay less than 5 years it's a better deal. I have done it multiple times in my current home, always dropping the rate with no cost. Just a thought.

JGoneRiding
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Joined: Tue Jul 15, 2014 3:26 pm

Re: Mortgage fees- Is this reasonable?

Postby JGoneRiding » Thu Feb 16, 2017 11:27 pm

Cigarman wrote:Have you looked a no closing cost loans? Rate is slightly higher but typically if you stay less than 5 years it's a better deal. I have done it multiple times in my current home, always dropping the rate with no cost. Just a thought.

i think they are actually. All fees listed are third party, taxes, escrow, and pre pays they aren't paying the bank anything. Since it isn't a refi no matter what those fees have to be paid. The attorney fee can only be negotiated with them

ResearchMed
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Joined: Fri Dec 26, 2008 11:25 pm

Re: Mortgage fees- Is this reasonable?

Postby ResearchMed » Thu Feb 16, 2017 11:55 pm

omega wrote:
<snip>

Third party fees:
Appraisal fee - 450
Credit report fee - 35
Flood plus tax service fee - 76
Attorney fee - 1200
Clsg agent fee - 325
Survey (if applicable)- 795
Recording fee - 250
TOTAL - 6316

Escrows:


What am I missing such that the "Third party fees" add up to more than $6k?

RM
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Easy Rhino
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Joined: Sun Aug 05, 2007 11:13 am
Location: San Diego

Re: Mortgage fees- Is this reasonable?

Postby Easy Rhino » Fri Feb 17, 2017 1:17 am

True. Third party fees don't add up. Maybe that's where the mortgage broker makes their money. They gotta earn a living somehow

Does the quote list out items you can shop fire yourself?. For instance in CA I could pick my own title company (we don't use lawyers to close here)

nolesrule
Posts: 264
Joined: Thu Feb 26, 2015 10:59 am

Re: Mortgage fees- Is this reasonable?

Postby nolesrule » Fri Feb 17, 2017 8:20 am

I don't see Title Insurance anywhere. That's probably the difference in 3rd party fees.

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ejvyas
Posts: 710
Joined: Sat Apr 30, 2011 12:09 am
Location: Boston, MA

Re: Mortgage fees- Is this reasonable?

Postby ejvyas » Fri Feb 17, 2017 8:41 am

It looks good. I just compared it with our recent purchase.

You may want to ask if the attorney will help with P&S and other stuff before closing.
I did my own homeowners insurance for cheaper from outside
I did not do any escrow as I want to be involved in it.

omega
Posts: 36
Joined: Wed Feb 01, 2017 9:38 pm

Re: Mortgage fees- Is this reasonable?

Postby omega » Fri Feb 17, 2017 11:19 am

Thank you all. It was my mistake skipping the title fee (3185) in the calculation and I now added it.

My broker told me that we would most likely getting the loan from Quicken.

I am thinking of checking with another agent/ bank for comparison purpose.

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BrandonBogle
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Re: Mortgage fees- Is this reasonable?

Postby BrandonBogle » Fri Feb 17, 2017 1:41 pm

Lots of this will vary based on the specific lawyer and area norms, but it is higher than what I am estimated on a refinance I'm in the process of getting right now.

Third party fees:
Appraisal fee - 450 Op / 365 me / 300 me on prior loan (6 years ago)
Credit report fee - 35 Op / 10 me / 7.33 me prior
Flood plus tax service fee - 76 Op / 7 me / 7 me prior
Attorney fee - 1200 Op / 730 me / 350 prior
Title/Owner policy - 3185 Op / 356 me (@ standard rate, not reissue, will be less at closing) / 296 prior
Clsg agent fee - 325 Op / 100 me / combined in attorney fee prior
Survey (if applicable)- 795 Op / 0 me / 350 prior
Recording fee - 250 / 78 me / 121 prior

TOTAL - 6316 Op / 1646 me / 1431 prior

A big chunk of that is the Title Fee, which is very dependent on price. Beyond that, nothing stands out too much other than the cost of the attorney and closing agent fees, but that may be normal for your area.

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Mortgage fees- Is this reasonable?

Postby lakpr » Sat Feb 18, 2017 12:27 pm

Agreed with other posters above, that everything else except attorney fees looks reasonable. When I bought my home 7 years ago, my attorney charged me $600 and that includes the closing agent fee (the attorney picked his own closing agent).

I doubt that, even allowing for 7 years passage of time, real estate attorney fee would double.

If you want the name of the attorney, please PM me, he is in near Princeton, NJ.

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BrandonBogle
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Re: Mortgage fees- Is this reasonable?

Postby BrandonBogle » Fri Mar 17, 2017 12:46 pm

Had my closing today. Here are my closing costs to help compare against:

Lender Origination/Application fee: $65
Appraisal: $350
Credit Report: $9.75
Flood Certification: $7.00
Tax Service Fee: $32.50
Title Insurance E-Filing Fee: $4.50
Attorney Fee: $800*
+ Prepaid interest
+ County recording fees
+ Title insurance @ state-mandated rates (so same for any title company in NC)



* Attorney fee is a flat fee that includes:
  • Lawyer fees
  • Notary fees
  • Closing Agent fees
  • Title exam
  • Title Search
  • Courier fees
  • Wiring fees
  • Doc Prep fees

So yes, shop around for the closing agent/attorney/title insurance (prep, not the policy itself) costs as others have previously said.

letsgobobby
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Re: Mortgage fees- Is this reasonable?

Postby letsgobobby » Fri Mar 17, 2017 12:51 pm

quicken is usually not the cheapest rates around.

Grt2bOutdoors
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Location: New York

Re: Mortgage fees- Is this reasonable?

Postby Grt2bOutdoors » Fri Mar 17, 2017 1:04 pm

letsgobobby wrote:quicken is usually not the cheapest rates around.


Perhaps not the cheapest rate, but may be the easiest to close with. You can get a cheap rate, only to find the closing process is a complete nightmare.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

letsgobobby
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Joined: Fri Sep 18, 2009 1:10 am

Re: Mortgage fees- Is this reasonable?

Postby letsgobobby » Fri Mar 17, 2017 1:40 pm

Grt2bOutdoors wrote:
letsgobobby wrote:quicken is usually not the cheapest rates around.


Perhaps not the cheapest rate, but may be the easiest to close with. You can get a cheap rate, only to find the closing process is a complete nightmare.

there may or may not be tradeoffs. But to save 0.5% on a $600,000 loan, or $3000 per year at the outset for 30 years, it is probably worth considering options.

For me, Quicken was always higher than the best available rates by at least 1%. In my case that would have been $5000 or more per year initially and for that much money I am willing to put up with some BS.


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