For example, there are prepaids that end up resulting in my having a larger principal balance than I currently have, in addition to paying the refinance fee.Now I'm trying to determine if the savings from the lower payments will be more than the cost of the higher overall loan payoff.

Based on quick math of a $160k purchase price at 25% down, I'm coming up with $62k needed to acquire (including inspection costs, prepaid insurance, contingency account, etc.), not including your $10k for renovations.

Interest 4.5%, 30 year fixed Home price $680,000 Our origination fees $1,790.00 Flood Certificate $25.00 Prepaid Intrest 15 days $1,006.03 Title services & lender title ins $850.00 Pre paid finnance charges Appraisal fee $550.00 Compiance inspection (if applicable) $150.00 First year home owners insurance $1,800.00 Home owners insurance 2 months@ $150 $300.00 Taxes 3 months @ $416.67 per month $1,250.00 Title services and lenders title insurance Lenders title ins $677.00 Departamental charges $475.00 Bankruptcy & company charges $185.00 Endorsements $350.00 Escro service fee / contin $300.00 Owners title insurance $2,749.00 Recording fees $550.00 Transfer taxes $12,410.00 State tax/Stamp $10,472.00 Survey $500.00 $36,389.04 total cost $716,389.04

Sometimes the guidelines will specify what this can not be credited toward, like prepaid items.Loans on primary residence are the most versatile in combining gifts, and concessions to produce the least amount of required contribution from the borrower.

That was because some government program (possibly the Veterans Admin) didn't count prepaid rent as an asset when determining whether he was eligible for services, but cash in a bank account was counted.

I thought that's what Prepaid cell phones were for.

Honestly you can get by just as fine with a 30-40$ a month prepaid plan.

Need to ensure that the lender doesn't account for payments, send them to a joint account for him to withdraw , this way the checking account will show your payment history.Tax wise, it's better to pay his closing costs than put the same amount down.No prepayment penalty, a seller or non registered lender cannot charge points either, that is prepaid interest. 

I was upfront about everything in terms of pre-paid rents security deposit etc.  

There are a lot of factors that affect closing costs; attorney's fees, prepaid interest, lender fees, title insurance, recording fees, closing fees, etc.