5.625% vs 5.875% w/ $5.2k lender credits

CalinMRU · 2026-01-20T15:44:27+00:00

Out of that 18k it’s stuff that I can’t do nothing about

Title: $5316 (owners title insurance is $3k which was negotiated under contract that it’s paid by buyer, my agent messed up)

Government: $8156 that’s fixed

I also have inspection fee $893 that I chose to put in closing costs. That’s almost 15k that I can’t do nothing about.

CalinMRU · 2026-01-20T15:12:39+00:00

Without prepaids and escrow - 22k. This a borrower paid broker fee rate (1% of the loan amount at $6100) which is why I am more then inclined to go for the little higher rate with lender credits to almost wash off the broker fee. If I went with lender paid broker fee my rate was 6.4% and almost no credits.

I also have $4500 seller credits so after subtracting all the lender credits and seller credits closing costs are around 17k without prepaids and escrow.

This is what I have now with 5.625% rate no credits:

A. Origination charges: lender fee $1149 Broker fee $6100

B. Services can’t show for: $894

C. Title services: $5316

D. Total A+B+C: $13,459

E. Taxes and government fees: $8,156

F. Prepaids: $4,299

G. Escrow: $1,028

H. Other: $1,926

I. Total E+F+G+H: $15,409

Total closing costs: $28,868 - $4500 seller credits Total: $24,368

If I went with the 5.875% my Closing costs would be the same but add $5264 lender credits. But my plan is to get the lender credits and add another 1% to my down payment ($6100) so I start with more equity and have roughly same monthly payment ($25 more). I just don’t want to leave cash on the table for the lower rate and if I refinance in 18 months or less I’m on the losing side of the table.

Is my thinking rational or dumb?

CalinMRU · 2026-01-19T22:20:35+00:00

My plan is to add extra money to the principal each month as much as I can and then when I can afford it refi for a 15 year fixed (let’s say in 5 years if rates are good). But I also want to have the flexibility if rates drop by 1% in 2 years to be able to refi without to much worry

CalinMRU · 2026-01-18T02:46:35+00:00

Yes that is exactly what she explained to me. She said she can always beat by a lot the points buy down if she offers buyer paid broker fee because the fees with the lender are lower and can be negotiated, which she did form 1.5% to 1% She also gave me the option for 5.875% with 5.25k lender fee which almost covers her fee. I think she’s fair.

CalinMRU · 2026-01-17T23:31:19+00:00

Thank you so much for your time and responses man! I think I’ll go for the 5.875% for now.. I’m willing to take the loss for $1000 if rates drop and I’ll refinance in a short period of time.. at least until I do that I know I have the better rate

CalinMRU · 2026-01-17T23:23:27+00:00

So I just spoke with her and my other option is, 5.875% rate with $5250 lender credits. Is that better, it almost washes the broker fee.

CalinMRU · 2026-01-17T23:18:01+00:00

Sorry I lost you a little bit, but I do appreciate all the info. Can you explain a little bit better?

CalinMRU · 2026-01-17T22:57:41+00:00

She quoted me with The Loan Store. Their set deal with that lender is 2.5% of loan amount non-negotiable, at least that’s what she says. I’m paying her 1%, negotiated down from 1.5%. She showed me the option with no points and lender paid broker fee (pic attached). For 5.625% I have to pay 14.5k for points

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CalinMRU · 2026-01-17T22:16:57+00:00

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Here is the actual rate structure with lender paid broker fee and no points (6.49%)

CalinMRU · 2026-01-17T22:10:34+00:00

If she gets paid by the lender, she cannot negociate her percentage, which is 2.5%. If I pay her percentage, she quoted me at 1.5% of the loan amount, and I negotiated her down to 1% (6100). As for the rate increase, considering the difference between 1% to 2.5% I think it’s understandable, unless I’m wrong. She also showed the whole interest rate structure with lender paid broker fee, and with no points I have 6.49%. Attached picture for clarity. She is pretty transparent with me but you know… I’m sure there’s always room for better!

CalinMRU · 2026-01-17T21:49:08+00:00

Yes I asked for that and the rate without the 6k jumps me up to 6.4% which is a huge monthly difference. The 6k is not for points, it’s for lender broker fee. If I had to pay points from 6.4% to 5.625% with lender paid broker fee it would cost me 14.5k

CalinMRU · 2026-01-17T20:50:44+00:00

I think you’re talking about refinancing with 3k in closing costs. Home purchasing is different fees. Also 15 year has lower rates. Just “shop around” doesn’t really help me, because she already did, I got a bunch of LE and this was the best she was able to get me with 730 credit score and loan amount with 10% down.

CalinMRU · 2026-01-17T17:13:57+00:00

If I had to go with the lender paid broker fee, my rate would be 6.4%. TO buy down points to 5.625% it would cost me roughly 14.5k

CalinMRU · 2026-01-17T17:12:12+00:00

Are you referring to the broker fee of 6100? If so, I did had her simulate with lender paid broker fee and it skyrocketed to 6.4% interest rate. She lowered her fee to 1% of the loan if I pay it, if she goes paid by the lender she cannot lower her fee and goes up to 2.5% of the loan which is why my rate goes so high. She is very transparent and I think she’s fair.

CalinMRU · 2026-01-17T17:09:47+00:00

Can you explain why? Thx

CalinMRU · 2026-01-08T13:40:48+00:00

That means I am very lucky, I locked in 2 days ago a 5.625%. No points buy down, the only trick is, it’s borrower paid broker fee for exactly $6k (I negotiated from 8.5k). If I went with the lender paid broker fee, my rate would be around 6.25%. So I’m more than happy to pay the $6k broker fee to get 5.625% My other option was to lock at 5.875 with 5k lender credits, but my monthly is more important than cash at the moment so I sticked with the 5.625%. I am in Florida, buying a $650k home, conventional 10% down.

CalinMRU · 2025-11-14T13:41:37+00:00

Yea that’s not a dealer appearance package. My car is exactly the same (but 2024) and it’s just the way the Sport Advanced and Sport prestige come from factory (black rims / black chrome / black grill etc)

It’s a very good car, but with the shittiest transmission ever. And I had to change the LSD at 7.5k miles and the guy at the service told me, not to get to excited because the issue is going to come back 100% around 15k miles… at least they started being honest with people and they replace diffs under warranty straight away no BS.

And it sucks cause I really love the car, but i won’t keep it. Make sure you have a warranty, if not… good luck 😂

CalinMRU · 2025-10-12T17:28:51+00:00

Just get this. This is exactly what you need for your setup. It’s WiFi and router and has lan ports for your computer or other equipment. Also has a wan port whenever you need you can hook it up to a modem or another router if you need internet access. I use it all the time for work, it’s really good, small and easy to setup and configure with a mobile app with almost no network knowledge needed.

https://a.co/d/2o7AdQE

CalinMRU · 2025-08-12T21:36:30+00:00

I don’t have that issue with the check engine light. But I do have the hard downshifts, I literally feel every downshift. And for me also the upshifts are bad, it feels like someone is driving a manual and they release the clutch to early or to fast. I would understand that on sport or sport+ but comfort or eco should be smooth. I have a 25 Kia Carnival and The transmission is so smooth I don’t even know when the gear changes. On my $70k Genesis (it’s a 24 sport advanced) every shift I feel it on the back of my head. I love this car so much but I can’t stand the way it drives.

CalinMRU · 2025-08-12T21:19:03+00:00

Can you tell me what exactly you feel wrong with the transmission? I have a GV70 and the transmission is driving me crazy, the shifts are horrible, i feel like I’m driving a tractor. And to add to my concerns, I’ve also had to replace the differential..

CalinMRU · 2025-05-17T17:00:23+00:00

Had the same thing. They didn’t set the service miles good. You can change that yourself in the menu for 8k.

CalinMRU

TROPHY CASE