Closing costs $9305 on a 108000 cash out!!

[Jason Keating]

This seems excessive to me. Cash out is at a small local credit union. They said this is what they account for and anticipate so it may change. What are your thoughts? What can I negotiate down? Rate is 4% on a 30 year. ARV is 145000 tenants in place on a 1 year lease. rents for $1000 a month property is in a rural area in Virginia. Purchased for $51500 and put $19000 into rehab.

[Bill B.]

You can see right on the form, the loan is costing you $6591, not $9300. If this is your first loan I would ask the banker to go over it with you. Anyone borrowing $100k should understand what they are doing/signing. 

The only irregular charge I see is the first one. The 2% in points. That’s usually a fee to lower the interest rate, but 4% on a 30 year is already high. So maybe they are $2k too high, but only if someone else will offer you a better deal. You have 45 days from the time this first lender pulled your credit to apply at other lenders without hurting your credit.