Closing Costs

There are several ways to get to the final number you will pay at closing.  Always remember that the lender/broker is going to be compensated- it's a matter of just how they are going to be compensated.  Preston Hollow Financial Services Inc is included in this category.  HOWEVER, WE PUT OUR MONEY WHERE OUR MOUTH IS.  Not only will we tell you what we are making, we will put it in writing.  We will also show you how you can monitor the specific index that govern fluctuations in mortgage rates.  We are compensated by:

Charging Points - Origination Fees - This should be the lowest rate of all 3 scenarios.

Yield Spread Premium (YSP) - This is a fee the lender pays based on the interest rate you ultimately obtain. This rate should be on the higher side.

Charge Points and Yield Spread Premium (YSP) - This rate will be somewhere in the middle of the three. 

Since rates are based on a variety of risk factors which deal specifically with Credit Score and Loan to Value (LTV), it may be necessary to charge both points and price based on YSP.  The most aggressive rates are available at a 60% LTV and greater than 740 credit score.  Someone with a 95% LTV and 620 credit score will have a higher interest rate since the price adjustments from Fannie Mae and Freddie Mac are higher.  That said, most lender strive to achieve a yield or gross commission between 2%-4% of the amount borrowed.  The yield is higher with lower loans as many costs are fixed.  At Preston Hollow Financial Services Inc, we try to maintain a yield of 1% - 2%.  This is why we are more than happy to recommend that you shop with at least 3 lenders.  We KNOW that our cost structure is going to put us in front of everyone else.  Our Good Faith Estimate show a standard of lower fees across the board to each and every client.  The following fees are what we commonly charge:

Appraisal                 $400.00

Credit Report           $20.00

Underwriting            $599.00

All other fees associated with your transaction will be related to the title company, your insurance company (you can get a free quote here Insurance Quote ) and the property taxes on your home.  These three sets of costs will be the same regardless of the lender you choose, especially on purchase transactions.     

Finally, it is important to compare lenders on the same day.  Rates are extremely volatile and have the capacity to change daily.  We will always keep you informed as to market fluctuations and may at times suggest that you lock in.  Ultimately, however, the decision is yours.