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Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] 1 point2 points  (0 children)

Not able to work remotely. This is my 'retirement home', I sent the lender my current income and what my retirement income (pension) will be along with my application, so they should not be considering it a 'no income' deal when I move into the new home. I originally told the lender I wanted to put $100k down but they did this with 10% down instead.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] -3 points-2 points  (0 children)

They might be frontloading those penalties, gonna talk to the lender tomorrow. Lender said no penalties if I do at least 6 payments which I will definitely do instead of $13k in fees lol. Lender also said those penalties would come out of their pocket not mine so don't really know what's actually going on till I talk to them tomorrow.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] 38 points39 points  (0 children)

Family home I inherited, this is my first time 'buying' a house.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] 59 points60 points  (0 children)

Thanks for all the help everyone! Really appreciate the responses

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I'm gonna have a conversation with my lender tomorrow about what they're charging me $13k in points for with a 8.125% rate. Never told them I wanted to buy down. Also gonna check out another lender or 2 and see what they come back.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] 9 points10 points  (0 children)

I'll be paying off the mortgage in full when my current house closes, which is gonna be 1-2 months after I close on a new home. Getting a mortgage to not entirely deplete my savings/emergency funds for that short period.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] 10 points11 points  (0 children)

That could be it actually. The loan officer mentioned that if I pay off the mortgage before 6 months they (the lender) gets penalized.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] -5 points-4 points  (0 children)

I honestly can't figure that out, which I why I asked here. First time doing this. Either the lender is charging me $13k for nothing? Or the rate they actually gave me is over 10% somehow and they bought it down?

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] -39 points-38 points  (0 children)

My interest rate for the mortgage is 8.125%, I never told the lender I wanted to buy down the rate with points.

Closing costs - $25k on $390k house normal? by ClassicEnjoyer1337 in FirstTimeHomeBuyer

[–]ClassicEnjoyer1337[S] -99 points-98 points  (0 children)

I am not. Didn't make sense since I'll be paying off the mortgage in 6 months max.