Are my closing costs high?

[Eric L.]

I'm purchasing my first (HUD) home for $107K and I read that closing costs are typically 2-5%. I've attached a copy of my GFE here. Please let me know your thoughts.

[David Beard]

@Eric L. - I reiterate that I don't like this lender. The section 801 fees on this GFE are not some high "swag", they are the fees that the lender intends to charge, and you need to have the numbers nailed down. And on top of that, the rate is too high, at 4.50%.

I put your info in to the Amerisave.com site (one of the largest on-line lenders, no I don't work there), and for a rate of 4.25% on 30-year fixed, the TOTAL fees would be about $2,500, detailed below. The lender fee is $663, compared to the sharks trying to charge you $2,600. The Section 1101 charges would only be $460 with Amerisave, versus $950 from the lender you are currently dealing with. You are overpaying by $2,500, plus paying an additional .25% on the rate. I'd call Amerisave or find a reasonable lender.