Is 4.87% closing cost high? Is this a rip?

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Is 4.87% closing cost high? Is this a rip?

Question: We are refinancing our home loan on a ballon at 4.875%. The loan officer told us closing costs shouldn’t be more than $3000, on the high end. Now we get the good faith estimate that gives us a closing cost at $3,806!. That is 4.87% of the loan (81,000). Does this seem high? The title co. is charging us $1,293. $325 will be for appraisal. $92 for goverment recording. That leaves $2057 associated with the cost of the loan. Read bank/broker. $200 of that is to waive the escrow. You think they would charge us less for not having to mess with our escrow (we do the payments ourselves). This about $800 more than we anticipated. Actually we are borrowing $78,000, they added the closing costs onto the loan and we are getting them to take it off since we are going to pay out of pocket for the closing.

Thanks for any info. anyone can give.

Answer: yes. Some. I think yuo could get it done for under $3,000. But, it is also not terrible. they are sticking you al ittle, but with rates down the fees have gone up. You can check again, or go with it. But, starting over means much more paperwork (and they KNOW that, which is why the numbers can be higher AFTER you have done so much work. they quote low and then when it is higher they know you will not move and do the paperwork again. Slimy, but that is the best reaon I can come up with why they seem to change higher and higher as you get closer to closing)

Check a few things thoughon the setiate too. maybe it is not as high as you think. Are they adding 15 days of interest? How about a year of homeowner insurance? If those are in the GFE then those are not really costs to close. In a refi they may not have those, but they may.

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Is 4.87% closing cost high? Is this a rip?

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