I need a second opinion on a GFE that I received. Is the broker getting paid from the bank? Are the fees listed to be believed as being reasonable?

Asked by Elle Choi, San Jose, CA Thu Dec 23, 2010

The Lowdown:

Loan Amount: $480,000
Loan Term: 30 years
Initial Interest Rate: 5%
Monthly Amount: $2576.74

Origination Charge: $6790
Credit received: $4800 for interest rate of 5% / -$4800
Adjusted Origination Charges: $1990

Appraisal Fee: $1000
Title Services/Lender's Title Insurance: $2626
Owner's Title: $344
Govt Recording chargers: $550
Deposit for Escrow: $1000
Daily Interest Charges: $1972.60
Homeowner's Insurance: $1500
Charges for All other Settlement Services:$8992.60

Total Settlement Charges: $10,982.60

The APR is 5.059%
I don't understand the Amount Financed and why it is $476787.40 and not $480,000?

any responses greatly appreciated...THANK YOU!

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Dan Tabit’s answer
Dan Tabit, Agent, Issaquah, WA
Thu Dec 23, 2010
Your best answer will come from a competing local lender. I'm licensed to do loans in WA, but not NJ, so I won't comment on whether these are normal or competitive terms. But when someone approaches me with a written GFE, on a specific date and I know the borrower’s credit score, I can quickly determine how well they line up with what I could offer. If they are already well in process and the rates and fees are competitive, I congratulate them for a good quote and encourage them to contact me if a problem develops. If I can substantially improve the terms, I provide an alternative quote based on the same days rates.
Best of luck.
0 votes
, ,
Wed Feb 16, 2011
sound like you are getting hosed by a few thousand dollars., Contact me and I could help
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Dec 24, 2010
The bets answers will come from your loan officer. They can answer the questions of what they charged and why. Your amount financed is the sales price less your down payment and or earnest money deposit.

Please see my blog with tips and advice on getting a mortgage in todays market.
0 votes
Maddox, , Menifee, CA
Thu Dec 23, 2010
I would check with your lender and ask how much the appraisal fee really is. $1000 is a bit much. In california its about 400 to 450 max. Also you can check on the government recording fees on county websites to ensure the 550 is indeed correct. The rest looks business as usual to me but I am not an expert.
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