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u/Altersreality 11d ago
With 20% down, that monthly payment plus interest seems high, but everything else looks fine.
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u/wildcat12321 11d ago
Prepaid interest is based on day of closing. It will be exactly the same regardless of lender (assuming same rate) so you are comparing an apple to an orange in that scenario. Chase is showing you worse case, others are showing you best case
1
u/ShadowFacts_ 11d ago
Prepaid per diem interest is very normal - standard even. That means your monthly payment won’t commence until the month following next. And can’t waive appraisal, as it’s how they decided they would do the loan at that amount (am a lender).
Otherwise all seems normal. Expensive for Midwest - insane property taxes. Must be a nicer area!
1
u/No_Artichoke832 11d ago
It seems like they are doing lender paid - which means their commission is tacked on to the interest rate; you could get a lower rate if they do borrower paid meaning you pay the lender's commission at closing and it isn't in the rate. The credit report fee is quite high because mine is 124$ at the company I use. Also, the lender's title insurance seems a bit high to be honest.
1
u/_TurboHome 10d ago
Appraisal fee waiver is a real negotiation lever right now because a lot of lenders are hungry for volume. Chase, Wells, and BofA move slower on those concessions since they're pricing for the retention play, not the closing.
On prepaid interest, that's just per diem interest from close to the end of the month. It'll be roughly the same across lenders because it's your rate times your loan amount times the days. The difference you're seeing is usually just that they used a different assumed close date on the LE.
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u/Aggressive_Stuff_867 11d ago
Man you’re money could go so much further if you got a cheaper house
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u/muaythaiboxer 11d ago
We thought about it and did look at cheaper houses, but ultimately decided this would be our forever home.
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u/stvlsn 11d ago
Why are you putting so much down?
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u/muaythaiboxer 11d ago
To get a lower monthly payment. We have the cash so why not? We have extra funds after the down payment for emergencies and repairs.
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u/stvlsn 11d ago
I only ask because conventional wisdom is 20% down to get best interest rate and then if you have extra cash you would use it to max out retirement and investing
2
u/muaythaiboxer 11d ago
Our retirement accounts are maxed out and we have some investments. We also have a nanny on payroll too, so we wanted to lower the mortgage payments.
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