Understanding and using the New Hud Good Faith Estimate.

If this calculator is being used in Northern Ohio most if not all of the Cost Estimates in boxes 3-11 should be left to auto calculate. In Box 1 you may wish to change the Misc Origination Fees (Processing, Document Prep, Underwriting and Verifications) In general my Misc Fees are $961.90. Depending on your loan type this number might be higher than it needs to be. Generally for Ohio mortgages, these charges are greater than $1,000 and I have seen them as high as $1,500 and even heard of some above $2,000. In many cases the Misc Fees represent a lenders fixed costs associated with a loan request. Other lenders will have a higher misc fee telling you that you will pay no points. Part of the logic or benefit of the New GFE Format is all Origination Fees, Discount Points and Misc Fees are presented as one total. Regardless of the name or title this assist borrowers in comparing quotes. Please feel free to contact me if you want an to know my Total Origination Fees against another Lenders. I may not always have the best priced loan for you, however in many cases I will. Make a call and see if I can save you money.

If you want to compare different rate & Closing Cost options, you may wish to use this Break Even Calculator, It allows you to compare different Rate & Closing Cost options based upon how long you expect to have the mortgage.

The Shaded fields should be changed based upon your transaction. Some or the other fees can be changed if needed.

Please add any lender Origination Fees, Discount Points, Processing and Underwriting Fees to this calculator.

.. Calc4WebCenter.xls

Purchase Loan Worksheet Cash to Close and Payment with Itemized Breakdown of Costs
Sales Price				Property County		Rate of Interest
						Term of Loan
Base Loan $ -- DP % or $ Amount				# of Units
Upfront MIP						LTV
Loan Amount with Upfront				This is an		Underwriting & Funding Costs
Month of Closing		1st Payment -		Online Estimate		Processing, Document Prep and Misc
FUNDS SUMMARY			Call			Payment Summary
Down Payment						P/I Payment
Borrower Closing Costs at Close			Tim Bradford 216-324-8113			Taxes per Year
Ernest Money						HO Insurance
Sellers Assistance Requested
						Total Payment
						Other (Condo, Assoc, PUD Fees)
						With Other
						Origination Fee $$ Amt or %% ***
Prepaid Items- See PTC Items below			for Custom Quote			Discount Points $$ Amt or %% ***
Additional Funds to Verify						Estimated Months of Monthly PMI or MIP
Buyers			Typically Seller	GFE Total		This worksheet is only valid when estimating the Cash To Close and Payment if Costs are Correctly Estimated. Default Cost are those typical in Northern Ohio.
Paid at close	Prior to Close	Financed	Paid


*** Regarding Origination Fees and Discount Points
The Payment of Origination Fees or Discount Points is optional. The elimination or reduction of these costs will affect the Rate of Interest offered on your loan request. Please discuss your options with an experienced loan officer.


					GFE Boxes 1 & 2 - Origination Charges - ZERO TOLERANCE
				ZERO Tolerance for Increase		Origination Fee(% or $) - Varies Based upon Rate desired

						Discount Points(% or $) - Varies Based Upon Rate Offered
0.00					Enter Description if Used

					Lender Doc Prep, Processing, Verifications and Other Misc Charges
					GFE Box 3- Required Services Lender Selects - 10% TOLERANCE
				10% Tolerance for Increase	Appraisal Costs (Estimated- Adjusted at closing) Units?
	50.00				Credit Report Costs (Estimated - Adjusted at closing)
18.00					Flood Cert Fee
			84.00		Tax Service Fee

						Upftont PMI/MIP
					Escrow Coordination to American Escrow (if Outside Escrow)
					Verification Costs - Tax Returns/Employment if Charge to AMMC

							$200.00
						Appr ReInspection Fees PBS (If required)	$100.00
					GFE Box 4 - Title Services and Lenders Title Insurance Tolerance Varies based on who chooses or identifies Provider
				Tolerance for change is based upon who selects provider If selected or identified by Lender 10% Tolerance Applies.	Escrow Fees
					Misc Charges from Title Company - Updates, Wire Costs, Delivery Costs
					Title Binder
					Title Exam
					Deed Prep/Attorney Fees
50.00					Closing Protection Letter - If Outside Escrow (Typically $35.00 Ohio)
100.00					Lenders Title Ins Base == Total with Endorsements-->
					Lenders Title Ins - Increased Loan Amount w 203K
75.00					Title Endorsement - EPA (Typically $75.00 Ohio)
75.00					Title Endorsement - Comprehensive-(Typically $75.00 Ohio)
50.00					Title Endorsement - Survey-(Typically $75.00 Ohio)
					Title Endorsement - ARM Loans-(Typically $75.00 Ohio)
					Title Endorsement - CONDO or Planned Unit Dev -(Typically $75.00 Ohio)

					GFE Box 5- Owners Title Insurance-Standard Coverage
					GFE Box 6- Required Services that you can shop for
					Survey

200.00			50.00		Box 7 Government Recording Charges - 10% TOLERANCE
					Box 8- Transfer Tax - Zero TOLERANCE
				ZERO Tolerance for Increase	County Transfer Fee
						Transfer Tax County
					Box 9- Initial Deposit for your Escrow Account
						Property Taxes - future tax bills(Typically PBS From Proration)
					0	Monthly MIP/PMI
					2	Home Owners Insurance
					Box 10 - Daily Interest Charges - Per Day
						Days - Interest to Close - HUD Recommends 15 days On GFE
					Box 11- Home Owners Insurances
						Months of HomeOwners
	0.00					Flood Insurance Cost $$$ (if Required)
					Breakdown of Cost for a GFE
Paid at Close	PTC	Financed	PBS	Total
PBS are items that are typically being paid by the seller according to contracts written in Northern Ohio
PTC are PREPAID items that are typically paid prior to closing. Review Table for these items.
THIS IS NOT A GOOD FAITH ESTIMATE or AN OFFER FOR A LOAN A Good Faith Estimate is provided pursuant to federal law upon submission of a formal loan application. This "Loan Worksheet" is provided for informational purposes ONLY to assist borrowers prior or when reviewing an official "Good Faith Estimate". Besides showing the "Expected Monthly Payment" and "Expected Cash to Close", this calculator breaks the costs into Four Groups: Costs Paid at Closing, Cost Paid during the Loan Process, Costs Financed and Costs paid by Seller.





Calculator is the property of Tim Bradford, an employee of American Midwest Mortgage, Call with any Questions

SpreadsheetConverter

Questions, comments, or suggestions? Please contact me: Tim Bradford, American Midwest Mortgage Corp. Telephone: 216-324-8113 Updated Thank you for visiting GFEforDummies.com!
Tim Bradford -- Ohio MB.803389 -- LO.007173
+ 2010 American Midwest Mortgage Corporation. Privacy Policy