Best Answer: The interest rate and the fees they are charging you are ridiculous.
I recommend that you cancel the transaction and start over with your credit union if you are a member of one or the bank where you have your savings and checking accounts.
I recently refinanced my house. I started with an online broker that claimed to have extremely low interest rates and low fees.
At the sign off I discovered that the loan terms the rates and the fees were completely different from what I had been told all through the process. the interest rate that they had was absolutely outrageously high.
I walked out of the title company halfway through the sign off and took all of the documents with me so that they could not possible put through a loan.
I then went back to the bank
where I have my savings and checking accounts. They offered me the option of a 5.25% 15 year fixed rate loan or a 30 year 5.75% fixed rate loan. I chose the 15 year fixed because of the lower interest rate and I can afford the higher payments.
Unless your loan amount is over 80% of the fair market value there should be no mortgage insurance premium.
Also you should be able to pay the loan amount down to less than 80% of the fair market value and have the mortgage insurance premium removed.
the terms of this loan that they have given you do not look good to me.
I recommend that you cancel this transaction and start over with your credit union or the bank where you have your checking and savings accounts.
Source(s): My experience. Over 40 years investing in real estate.