Here would be my breakdown...
1% origination fee of the loan amount
450 for apraisal
500 for processing
550 for underwriting
425 for escrow
425 for title
If you have your taxes and insurance with your payment you will need to factor in escrow impounds. These are not closing costs, but funds required to be collected at closing to set up your escrow account.
Why in the world is your rate so high? With that kind of down payment, you should be in the 5% range, maybe even lower...
The lender, not VA, sets the interest rate, discount points, and closing costs. These rates may vary from lender to lender
Closing costs such as the VA appraisal, credit report, state and local taxes, and recording fees may be paid by the purchaser, the seller, or shared
The seller can pay for some closing costs. (Under our rules, a sellerâ€™s â€œconcessionsâ€ canâ€™t exceed 4% of the loan. But only some types of costs fall under this 4% rule. Examples are: payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgments for the Veteran, and funds for temporary â€œbuydowns.â€ Payment of discount points is not subject to the 4% limit.)
You are not allowed to pay for the termite report, unless the loan is a refinance. That fee is usually paid by the seller.
No commissions, brokerage fees, or "buyer broker" fees may be charged to the Veteran buyer
Thanks for you insight man, I really appreciate the info. That gives me a great ballpark figure to expect. As far as the interest rate, to be honest, I was merely speculating on what I've seen the norm percent to be. Having the taxes and insurance combined with the payment, is another anomaly I didn't know existed. I guess I have a lot to learn.
silver n black!
Appreciate everyone's insight.