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GFE For First Home Purchase


sabwafare2001
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The last post in this topic was posted 5438 days ago. 

 

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Please provide any feedback of my GFE from Custom Home Lending. Also, I spoke with another lender that said they do not charge PMI on 100% financed loans because they are allow to do this. How can this be?

My FICO is 743, income is 63K, has CC debt under 1K, 16K in student loans, and an Auto Loan of $540 or 30K.

 

 

 

Purchase Price $210,433.00

 

Program 1st - 5yr. LIBOR ARM I/O

Program 2nd -

Loan Amount 1st - $168,346.40

Loan amount 2nd - $42,086.60

Discount Points 1st - 0.000%

Interest Rate - 6.000%

Discount Points 2nd - 0.000%

Interest Rate 2nd - 8.125%

 

801 Origination Fee - 0

802 Loan Discount - 0

803 Appraisal - $350.00

(Document Prep, Processing,

Underwriting, Flood Cert.,

Tax Service Fee, Credit Report,

Wire Transfer Fee) - $699.00

 

1100 Title Charges

1101 Closing or Escrow Fee - $350.00

1105 Doc Prep Fee -

1108 Title Insurance - $600.00

8.1 Endorcement - $180.00

 

1201 Recording Fee - $60.00

Total Closing Cost - $2,239.00

 

900 Prepaids

901 Interest for 15 days - $415.10

902 Mortgage Insurance Premium -

903 Hazard Insurance First year -$500.00

905 VA Funding Fee -

 

1000 Reserves Deposited With Lender

1001 Hazard insurance for 3mn. - $125.00

1002 Mortgage Insurance -

1003 School Tax -

1004 Tax impounds for 4 mn. - $561.15

1005 Floor Insurance -

Total Prepaids - $1,601.26

 

Down Payment - 0

Total Closing Cost - $2,239.00

Total Prepaids - $1,601.26

Total Discount Points - 0

Seller paid - 0

Earnest Deposit - $(5,800.00)

Total Cash Required at Closing - $(1,959.74)

 

1st Mortgage IO - $841.73

2nd Mortgage - $284.96

Taxes - $140.29

Insurance - $50.00

Homeowners Association - $30.00

Total House Payment - $1,346.98

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Please provide any feedback of my GFE from Custom Home Lending. Also, I spoke with another lender that said they do not charge PMI on 100% financed loans because they are allow to do this. How can this be? It's called a snow job. Any lender can waive PMI on a single 100% conforming mortgage by raising the rate and having LPMI (Lender Paid Mortgage Insurance) or a single pay mortgage insurance. In many cases the only beneficiary of this is the lender. When paying pmi, you can get it dropped by paying the principal down to under 78% or by having the property increase in value until the principal is under 78%, most lenders will require that you maintain pmi for at least 2 years. In order to take advantage of the lowered LTV you would need to refinance out of LPMI which would most likely be far more costly. Also, with your scores, why are you going with a single mortgage instead of an 80/20 combo mortgage?

My FICO is 743, income is 63K, has CC debt under 1K, What is the minimum required payments on your credit cards? 16K in student loans, What is the minimum monthly payment and interest rate? and an Auto Loan of $540 or 30K.

 

 

 

Purchase Price $210,433.00

 

Program 1st - 5yr. LIBOR ARM I/O Why are you going with a 5/1 ARM and why are you going IO?

Program 2nd -

Loan Amount 1st - $168,346.40

Loan amount 2nd - $42,086.60

Discount Points 1st - 0.000%

Interest Rate - 6.000% This is not bad since there is no origination or discount fee. Is there a mortgage broker fee?

Discount Points 2nd - 0.000%

Interest Rate 2nd - 8.125% This is a good rate.

 

801 Origination Fee - 0

802 Loan Discount - 0

803 Appraisal - $350.00

(Document Prep, Processing,

Underwriting, Flood Cert.,

Tax Service Fee, Credit Report,

Wire Transfer Fee) - $699.00

 

1100 Title Charges

1101 Closing or Escrow Fee - $350.00

1105 Doc Prep Fee -

1108 Title Insurance - $600.00

8.1 Endorcement - $180.00

 

1201 Recording Fee - $60.00

Total Closing Cost - $2,239.00

 

900 Prepaids

901 Interest for 15 days - $415.10

902 Mortgage Insurance Premium -

903 Hazard Insurance First year -$500.00

905 VA Funding Fee -

 

1000 Reserves Deposited With Lender

1001 Hazard insurance for 3mn. - $125.00

1002 Mortgage Insurance -

1003 School Tax -

1004 Tax impounds for 4 mn. - $561.15

1005 Floor Insurance -

Total Prepaids - $1,601.26

 

Down Payment - 0

Total Closing Cost - $2,239.00

Total Prepaids - $1,601.26

Total Discount Points - 0

Seller paid - 0

Earnest Deposit - $(5,800.00)

Total Cash Required at Closing - $(1,959.74)

 

1st Mortgage IO - $841.73

2nd Mortgage - $284.96

Taxes - $140.29

Insurance - $50.00

Homeowners Association - $30.00

Total House Payment - $1,346.98

 

Sab

 

Overall I would say you have a pretty decent GFE.

 

 

fla-tan

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Thanks for the reply.

 

The minimum payment on the CC is about $30. The interest rate will kick in May at 9.9% and the limit is 15K. The min. for my student loans are about $80.

 

Concerning the 100% with no PMI, the lady said they no charge it because the investor doesn't require it. I don't have a GFE for this loan but it the interest rate was 6.375% with 0 pts. and 6.0% with 1 pt. The note came out to be $1270 with taxes, HOA, etc. included. Other than that I would have asked for a 80-20 or 75-25.

 

My reason for going with this program is that I don't except to be in the house more than 5 years. However if I am here more than 5 years, I get 3 to 5% raise on average every year that should keep up with the possible adjustments. Also, I am trying to have more cash flow because of my Auto Loan at 7%, to pay off debt, save money, and lastly the wife. I hope to be debt free with the exception of a Mortgage by 30(6 more yrs.). I do plan to pay an extra $100 to $150 on the 20%, which is at a higher rate. Any advice would be good

Edited by sabwafare2001
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The GFE does appear to be very reasonable. Your reasoning for going 5/1 IO is right on - no reason to pay principle if you're going to be there just a few years. BUT, please be sure you're leaving....otherwise you'll end up having to refinance and that will cost money.

 

800s

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