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Asked by Matias Cardiel, Los Angeles, CA Fri Jun 13, 2008

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7
Franklin Far…, , West Los Angeles, Los Angeles, CA
Fri Jun 13, 2008
I am wondering what is included in the monthly payment quoted.

My calculator indicates that a loan for that amount, at that interest rate would be apporoximately $1,896.61 per month.

The questions to ask is whether or not impounds are included in the $2,500 figure. Impounds are property taxes that are paid each month into the lenders escrow account to assure that the property taxes are paid on time.

The lender will advise escrow as to the amount that needs to be prepaid to start the acccount.

Is property insurance included in that quote i.e. fire, liablity, flood.?

Amoung other items, the GFE should provide the loan amount, the interest rate, the monthly payment, the points charged by the lender, lender escrow fees, lender title fees, estimated property tax

Consult with the local full time realtor who will be helping you find your new home. They will have access to a sample GFE as well as referral mortgage brokers who are reliable and honest.

Best of luck in your home search.
2 votes
Dyanna, , California
Fri Jun 13, 2008
Hello Again.
The Nehemiah program is something seperate from the ECTP. A new law was just passed that reinforced the use of the Nehemiah program through FHA. FHA wanted to stop the use of the down payment assistance programs stating that this was not really a down payment, but that proposal was rebutted by 2 courts. Now FHA is still trying to ban these types of programs so if you are seriously considering using them and have a seller that will comply, do so quickly.

Good Luck!
Dyanna
0 votes
Matias Cardi…, Home Buyer, Los Angeles, CA
Fri Jun 13, 2008
Thank you guys for providing me with all this information. My fiance and I are looking into the Extra Credit Teacher Program through CALHFA which provides Down Payment assistance and lower Interest rate. The GFE does include taxes and PMI according to the GFE paperwork. Another question: Is the ECTP plan better than other programs like the Neyemiah offered through FHA? and or can they be combined in which we would get the lower rate using ECTP and the down payment grant using AmeriDream or Neyemiah?
0 votes
Dyanna, , California
Fri Jun 13, 2008
Hello Matias. I would say that you should always be very careful and ask questions. I wrote an article in the Press-Telegram in regards to closing costs and what is normal to pay as a buyer.If you would like it, I would be happy to send it to you. Please send me an e-mail and I will send it right away. I hope you trust your lender, if you don't you should be getting a second opinion, but $2,400 sounds about right for a 30-yr fixed with everything included.And your interest rate is really good because yesterday it was almost at 6.375%. Good Luck!!

Dyanna
0 votes
M.D.J, , Los Angeles, CA
Fri Jun 13, 2008
The bottom line is what are the total lender fees and at what rate? The breakdown can be different from lender to lender but just stay focus on the total points and fees plus at what interest rate.

If you would like another opinion in reviewing the estimate then feel free to contact me.
0 votes
Fri Jun 13, 2008
Matias,

I ran a couple of quick numbers based on the information that you provided...you're monthly Principle & Interest Payment should be $1896.61. This of course is not including your monthly tax and insurance payments, nor is it including any mortgage insurance (provided you put 20% down) on the home.

5.75% is a great rate right now. You didn't mention if the loan was going to be an FHA or Conventional.

Either way....you would have to buy down that rate down (with points) based on today's rates.
0 votes
Artur Urbans…, Agent, Burlingame, CA
Fri Jun 13, 2008
GFE for a fixed rate loan is very straightforward. You look at the rate and loan origination fee (it might have different names). It is what lender and/or broker will charge you for the rate you are asking for. You might be charged points for getting lower rate (it makes usually sense to pay up to 2 points for the fixed rate loan, assuming that you will keep it at least for 2 years). Other costs include broker/lender processing fees and all bunch of small fees fro wire transfers, couriers, etc. 5.75% rate seem to be very low. So watch for "birte and switch". It is the rate for 15 years fixed loans at the present time. Look at the rates published by "Mortgage professor" at http://www.mtgprofessor.com/ Also look to http://www.mortgageguide101.com/mortgage-closing-costs.aspx for detail explanation of closing costs
Web Reference:  http://www.cimpler.com
0 votes
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