Do these closing costs seem high?

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My fiance works for a mortgage company and we’re supposedly getting a discount on our closing costs but even with that it still seems really high. This is for a 140k fixed rate loan with a 5.5% rate and 30 year term. The house will be bought in Washington County, PA.

Line 808 Mortgage Broker Fee $ 1000
Line 810 Processing Fee $ 300
Line 811 Underwriting Fee $ 650
Line 1105 Document Preperation Fee $ 100.00
Line 1108 Title Insurance Fee $ 1073.75
Line 1111 Endorsements $ 150
Line 1201 Recording Fee $ 138.50
Line 1202 Local Tax/Stamps $ 1050
Line 1203 State Tax/Stamps $ 700

Sub-Totaled Closing Costs 5197.25


Line 901 Prepaid Interest $ 186.72
Line 1001 Hazard Ins $ 74
Line 1002 Mortgage Ins $ 186.00
Line 1004 Property Tax $ 1080

Total Closing Costs 6723.97

I understand that I can get the seller to pay some of these but they seem really high. Do any of these fees stand out as outrageously high or am I just overwhelmed because I am a first time home buyer.
My credit score is 800
And supposedly the guy is saving us $ 1800

  1. Reply
    Chillin K
    February 14, 2011 at 8:50 pm

    These seem reasonable. If you want the seller to help with closing costs, you have to state that in the contract when you make the offer. Once the offer is accepted, you are responsible for the closing costs.

  2. Reply
    Real Estate Guy
    February 14, 2011 at 9:35 pm

    yes. not know anything about your credit, etc, I would say that 5.5% today for a 30 year fixed is to high.

    lines 901, 1001, 1002 and 1004 are correct.

    lines 1201, 1202 and 1203 are correct since they are based on a percentage of the sales price and are set by the government.

    1108 appears to be correct.

    lines 808, 810, 811, 1105 are junk fees and are profits. These are VERY HIGH, especially if he is getting a break. Plus, at 5.5%, the lender is already making a killing.

  3. Reply
    February 14, 2011 at 10:06 pm

    The only line that looks out of line is 1108…that is really high for title costs. The rate is a little high but they are not charging you points on the front so they are making it up by giving you a higher rate. The other thing is that may be a result of your credit score. What does your fiance do for this place? I’m sorry but the real estate guy is wrong the only fee that could be considered a “junk” fee is line 1105, the document prep fee.

    Edit to response: With your score of 800 the lender is not giving you any kind of break at all. They are charging you a broker fee of $ 1,000.00 (line 808) plus making at least 2% of the loan amount from the lender at the rate of 5.5% If this is an FHA .
    I can do better.

  4. Reply
    February 14, 2011 at 10:33 pm

    Other then the title insurance those fees are very average and too be expected. They usually total around 7k.

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