Ziay!

johnfho32 · 06-10-2008, 09:44 AM

Hi,
I'm getting a VA loan for a home whose purchase price is 175K (I'm paying 2PTS. to get the rate to 5.5%). My lender says they charge NO lender fees for VA loans. Sounds fishy to me.
In the good faith estimate, I have a question about line 1101 which is "settlement or closing fee". The listed cost for this is $600. Title insurance (line 1108) is listed as $900 and the recording fee (line 1201) as $110.

The estimated closing costs are listed as $2014 without the prepaids or discount points included. This bank has to be making money off me but I can't figure out how; this makes me uneasy. Any answers? Thanks in advance!

kemperk · 06-10-2008, 09:44 AM

points are the bank's profit.

C00LHANDLUKE · 06-10-2008, 10:00 AM

I have been to about 20 closings in the last several months, but they have all been in Mississippi. Settlement or closing cost usually refer to attorney fees. Your bank or agent usually picks the attorney, or "title company" so there is not much you can do about that. But a $110.00 recording fee is very high to me. I would definitely question that. Again I am not sure where you are but in Mississippi I would question that.

Also title insurance is usually based on a set fee plus so much per thousand. The attorney I usually deal with use $50.00 fee plus $3.00 per thousand. Using my formula you would pay about $575.00 in Title Insurance, but I would ask about the specific formula regardless.

As I write this I am looking at a HUD dispersement form and the recording fee is $25.00 for this particular closing.

I hope this helps you. If you have any follow up questions, I would be happy to help.

06-10-2008, 09:44 AM	#1
johnfho32 Junior Member Join Date: Jun 2008 Posts: 1	mortgage closing costs ? Hi, I'm getting a VA loan for a home whose purchase price is 175K (I'm paying 2PTS. to get the rate to 5.5%). My lender says they charge NO lender fees for VA loans. Sounds fishy to me. In the good faith estimate, I have a question about line 1101 which is "settlement or closing fee". The listed cost for this is $600. Title insurance (line 1108) is listed as $900 and the recording fee (line 1201) as $110. The estimated closing costs are listed as $2014 without the prepaids or discount points included. This bank has to be making money off me but I can't figure out how; this makes me uneasy. Any answers? Thanks in advance!

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06-10-2008, 09:44 AM	#2
kemperk Junior Member Join Date: Jun 2008 Posts: 5	points are the bank's profit.

06-10-2008, 10:00 AM	#3
C00LHANDLUKE Junior Member Join Date: Jun 2008 Posts: 1	I have been to about 20 closings in the last several months, but they have all been in Mississippi. Settlement or closing cost usually refer to attorney fees. Your bank or agent usually picks the attorney, or "title company" so there is not much you can do about that. But a $110.00 recording fee is very high to me. I would definitely question that. Again I am not sure where you are but in Mississippi I would question that. Also title insurance is usually based on a set fee plus so much per thousand. The attorney I usually deal with use $50.00 fee plus $3.00 per thousand. Using my formula you would pay about $575.00 in Title Insurance, but I would ask about the specific formula regardless. As I write this I am looking at a HUD dispersement form and the recording fee is $25.00 for this particular closing. I hope this helps you. If you have any follow up questions, I would be happy to help.

Ziay!

mortgage closing costs ?

mortgage closing costs ?