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Financing in Tarzana : Real Estate Advice

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Sun May 7, 2017
Jbrookes114 answered:
Keep in mind the closing costs also include the escrow fees (Section C), Taxes/Recording (Section E), Prepaids (Section F), Escrow Deposits (Section G), and usually "Optional" Owners title insurance (which is often actually paid by the seller depending on your contract).

You didn't state your purchase price, but reverse engineering your Funding Fee of $10572, leaves a loan amount around $604k and a purchase price of about $636k with the 5% down?

You will be prepaying interest and a full year of insurance as well as paying several months of property taxes into your escrow deposit. On a purchase of over $600k, those amounts are going to feel very high.

However, none of these things is an actual loan cost. What really matters is Section A -- $1595, the interest rate, 4%, and the lender credit -- $2500, which is about 0.4 points.

The REAL question you should be asking are:
1) Is your FICO high enough for a 5% down conventional loan which will save you the $10k funding fee and probably about $300 a month on your mortgage insurance
2) If your fico is low (
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