HELP MORTGAGE PEOPLE!!!!

I'm SO confused.....

I have two GFE's from two different companies. One of which is from the company working for the builder. His monthly payment is lower but his closing costs are soooo much higher!

The other estimate seems to be right on but is $100 more a month.

Both are 30 year fixed with 10% down, 80/10 to avoid PMI.

Thoughts?? Can someone explain?

Also, I feel as though I should lock in ASAP as rates are down BUT they could charge me a fee as we don't close until July.

HELP?

Re: HELP MORTGAGE PEOPLE!!!!

Does each GFE have the same interest rate?

How do you know it is "right on"?

I would compare side by side (as best you can) and see where the discrepancies lie.

Are you paying for points with the one with the lower monthly payment? That could be the reason the monthly payment is lower and the closing costs are higher.

If there are discrepancies

Re: HELP MORTGAGE PEOPLE!!!!

Re: HELP MORTGAGE PEOPLE!!!!

The discrepancies that I found in mine were:

1) Difference in lender's fees - one was a decent amount higher
2) One GFE was showing more due at closing for escrow (which we ended up not doing anyway)
3) One was based on a closing date earlier in the month so the interest due was higher than if we closed at the end of the month (in the end it all equals out - you just need to pay more at closing).

Both of our GFEs were different and they were both wrong. Our lawyer gave us the best "estimate".

Re: HELP MORTGAGE PEOPLE!!!!

I could be wrong but I think if you lock in a rate that rate is only good for 60 or 90 days.

Re: HELP MORTGAGE PEOPLE!!!!

Re: HELP MORTGAGE PEOPLE!!!!

are the interest rates really different? if they are, it could be that one broker is doing back points (he ups the rate to get paid more) and the other isn't doing back points but is uping the closing costs.

Re: HELP MORTGAGE PEOPLE!!!!

Just to let you know, a broker can give you a GFE, but really, the closing costs are more determined by the real estate lawyers/ title companies and escrow iterms. Also, I don't know about the other homeowners here, but we had a closing date set at July15th, but we didn't close until August 25th, so we lost our lock in rate. So many factors play into the money that you will have to pay on closing day, and you really won't know what you will have to pay until a few days before, or even that day. Pick a bank that will give you a good program and has a good reputation for on-time closings. From my experience, Wa Mu does not.

Re: HELP MORTGAGE PEOPLE!!!!

Thanks everyone!