Are my closing costs too high- Nevada?

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am a little concerned over the quote I received for closing costs for my new loan (refinancing), but I don’t have enough experience to know if this is the norm. Here are the costs:

Loan Origination Fee: (1%) $ 4,170
Appraisal Fee: $ 350.00
Credit Report Fee: $ 37.00
Mortgage Broker Fee: $ 600.00
Tax Related Service Fee: $ 60
Processing Fee: $ 495.00
Underwriting Fee: $ 695.00
Wire Transfer Fee: $ 16
Flood Certif: $ 12.00

Title Charges:
Closing/Escrow Fee: $ 150.00
Doc Prep Fee: $ 70.00
Title Insurance: $ 1474.00
Endorsements Est.: $ 100.00

Recording Fee: 95.00

Estimated Closing Cost: $ 8,325.00

Is this right? It sure seems a little high! The loan amount is 470k. Thanks!

7 Comments
  1. Reply
    Fermat
    February 16, 2011 at 7:33 am

    On a dollar basis, that seems high, but you are taking out a loan of almost a half a million dollars. The relative cost is only about 2%, which is not too bad. I live in the Vegas area and overall, it is competitive.

    Not to sound flip, but do you really need that big of a loan? I work in the mortgage industry on a $ 3 billion dollar portfolio and we often see people who outsize their mortgages. If this is a thirty year fixed then you are probably ok. If this is a ARM loan or an interest only loan, be careful.

  2. Reply
    i love arsenal
    February 16, 2011 at 8:32 am

    ofcourse! thats like 2 percent of the loan!

  3. Reply
    spanky
    February 16, 2011 at 9:31 am

    I would question many of these fees – I am not an expert but htis does sound high – – why is there an underwriting fee? What are they processing for $ 495..

    question the hell out of them and compare w/other lenders – – that is an awful lot to give away off the top..

  4. Reply
    tunter2006
    February 16, 2011 at 10:18 am

    It’s a little strange that they charged you an origination fee as well as a mortgage broker fee, essentially they are the same thing. Other than that, your fees are actually relatively low, considering the loan amount you’re looking at. The only thing I am wondering is what your rate is. The mortgage broker can get paid off of your rate as well. If they’re splitting up their fees that they’re showing you, I’m thinking you’re paying a higher rate than necessary as well. This is an e mail address of mine also, if you want to run the numbers by me. Good luck with your refi!

  5. Reply
    Rico
    February 16, 2011 at 11:14 am

    Don’t know about Nevada but if it was California it would be typical. The only part that looks suspect is the “mortgage broker fee”. You’re already paying 1% for the loan so unless you are getting below market interest rate, that looks a little “fat”.

  6. Reply
    Nicholas M
    February 16, 2011 at 11:20 am

    Honestly it’s pretty much in line. You could maybe dispute the credit report fee since most brokers get them for 12-15 bucks (called a fluff fee in the business), Mortgage broker fee I think should be removed as the processing, and origination should cover that.

    As for flood cert, underwriting, tax service and wire those are lender charges so it’s kinda hard to get around those. UW of 695.00 is bit high for the industry, unless we’re talking about a sub prime loan.

    BUT THE BIGGEST ITEM TO WATCH FOR AND I WOULD EVEN ASK YOUR BROKER

    is what he is making on the back end for points from the lender!!!! THIS WILL SHOW UP ON THE SETTLEMENT STATEMENT. Kinda hard to say what is fair and what is not but anything more than a point I think you are getting taken advantage of since there is enough being made by him on the front end.

    Honestly local banks would easily beat those fees out if you can go full documentation with the loan.

  7. Reply
    Kathleen M
    February 16, 2011 at 11:36 am

    For the cost of your loan it doesn’t seem to out of line. I would question the Mortgage Broker fee. Usually the broker gets paid by the lender, not by you. Question that. Title Charges are in line. Underwriting fee seems steep. Question every charge, but ultimately this is what this lender is going to charge to make you the loan. The question is do you want the loan or not? Good Luck

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