I'm applying for a refi and I think the fees involved are too high. The trouble is that I don't know out of the 20 or so various things in the closing costs estimate what is reasonable, unchangeable, negotiable, or outrageous. My quick research tells me that closing costs average between 2% - 5%. These costs (total closing costs divided by loan amount) are at about 5.1%. My first impression: "Yeah, right. Cut those costs in half or I walk." I'm willing to accept that I'm simply mistaken and these are reasonable, so my question is evaluating the meaning and fairness of these costs in general. Not necessarily whether my explicit costs are fair now and into the unknown future.
Here's their break down of the loan costs:
Loan Costs
A. Origination Charges $2,951
% of Loan Amount (Points)
Biweekly Processing Fee $350
Origination Fee $2,022
Underwriting Fees $579
B. Services You Cannot Shop For $ 1,026
Appraisal Fee $900
Credit Report $32
Flood Certification $15
Tax Service $79
C. Services You Can Shop For $2,260
Title - Closing Protection Letter $25
Title - Courier Fee $20
Title - Document Retrieval Fee $30
Title - Electronic Document Delivery Fee $10
Title - Electronic Recording/Filing Fee $9
Title - Endorsements to Title $150
Title - Lender's Title Insurance $1,009
Title - Settlement Fee $907
Title - Simultaneous Issue Fee $75
Title - Wire Transfer Fee $25
D. TOTAL LOAN COSTS (A + B + C) $6,237
Other Costs
E. Taxes and Other Government Fees $158
Recording Fees and Other Taxes $158
Transfer Taxes
F. Prepaids $810
Homeowner's Insurance Premium ( months)
Mortgage Insurance Premium ( months)
Prepaid Interest ($18.0041 per day for 45 days @3.25 %) $810
Property Taxes ( months)
G. Initial Escrow Payment at Closing $2,423
Homeowner's Insurance - $34.61 biweekly for 7 bwk - $242
Mortgage Insurance - biweekly for bwk -
Property Taxes - $155.77 biweekly for 14 bwk - $2,181
H. Other $0
I. TOTAL OTHER COSTS (E + F + G + H) $3,391
J. TOTAL CLOSING COSTS $9,628
D + I $9,628
Lender Credits
Calculating Cash to Close
Loan Amount $202,200
Total Closing Costs (J) -$9,628
Estimated Total Payoffs and Payments -$194,028
Estimated Cash to Close From Borrower $1,456
Estimated Closing Costs Financed
(Paid from your Loan Amount) $8,172
Here's an image of the estimate in case I missed something above.