Loan and fee comprison between BOA and mortgage broker, which one you find better?
My broker wants to charge the followings for a loan amout of about 242$k. and in current best market rate of about 6% 30 yr fixed stated income.
appraisal fee$ 300
processing fee $350
underwriting fee $ 700
titile insurance $ 1100
closing cost $ 2450
YSP paid to broker 1.5% that is $ 3663
monthly payment would be$ 1805.
The broker says there is PMI as we are putting 5% down.
Now bank of america wanna give me same stated income loan of $ 250K ,30 yr fixed, 10% down andwhich is $225K loan on rate of 5.500%
But discount point of 3.552% that is $7992 I have to pay in fee,
But no PMI for putting 10% down only
no closing or any lending fees.
If you compare, which deal you find better BOA or thr broker’s?
over all, where I am losing more money?
BOA has no PMI which means I am saving over 100$ monthly for several years right?
I think despite the $7992 discount point fee, I still think BOA’s deal is better as no lending fees of any kind and saving thousands on PMI.
?
I would go with BAC, pay the points and avoid paying P.M.I. P.M.I. is throwing money down the drain, as a buyer you get absolutely no benefit from paying it. The points are deductible from your taxes spread over the life of the loan. Take the $100. you would be paying for P.M.I. and apply it toward the principal every month. Two other reasons to go the BAC way is the fact that your loan amount will be 5% less because of the 10% down payment, your interest rate will be lower and you won’t have to pay any lenders fees.
Good luck whichever way you go.