The lender’s good faith estimate is that he made a poor estimate; it was off by more than 0.5% of the actual closing costs.
<h3>What is closing cost?</h3>All the expenduture and charges charged by a lander and other parties is called the closing cost.
A lender estimates the closing costs on a home loan will be 3.75% of the loan amount of $120,000. Thus, the estimate closing cost is,
The actual closing costs are listed below.
- Loan origination $300
- Title insurance $600
- Attorney’s fees $1,250
- Appraisal $550
- Inspection $525
- Recording fees $125
- Escrow $2,000.
The total annual cost is,
Total annual cost is $300 more than the estimate closing cost. In the percentage form,
Thus, the lender’s good faith estimate is that he made a poor estimate; it was off by more than 0.5% of the actual closing costs.
Learn more about the closing cost here;