Good Faith Estimate

[Gayle]

I am curious about charges listed on a good faith estimate from Vanderbilt Bank on the double wide we plan to purchase from a Clayton dealer. It amounts to nearly 10,000.00! Two of the listings are questionable to me....2500.00 for "Hazard Insurance Premium" It seems that the dealer would have insurance to protect my home until they get it set on the site. Is this for something else? There is a charge for "Family Protection Insurance" in the amount of 1050.00 Is this different than my homeowners insurance from Farm Bureau? These charges just seem to be dollars that I had not planned to spend...Please advise.
Thanks, Gayle

[rmurray]

HOLD ON TO YOUR POCKET BOOK..

Hazard Insurance Premium....IS your homeoners insurance and has nothing to do with Clayton's insurance....If the salesperson told you this..beware of other miss information...This is the same as the insurance you buy from Farm Bureau..

The reason it is so high is that when Clayton sells insurance through their own agency..they sell longer term..3 to 5 years at 1 time...much higher commission that way...of course you pay interest on the whole balance forever...much more money for Clayton..

You have the right to purchase any insurance you want..

Family Protection Insurance...is something else NOT required under mortgages...from the name I would guess this is some sort of limited disability insurance or limited life insurance...Either case...might be something you want..BUT..not something to pay interest on..

By the way..I would guess that you can get much better rates from other lenders than Clayton's..Vanderbuilt...Even with these items taken off there still is $6500 in closing costs....WAY TO HIGH...Your total closing costs including your homeowners should be about $ 3500 to $ 4000 (for a 100k loan lower on lower loans) on loans about 6.5% fixed rate right now..

This is the nice part of the land/home process..RESPA forms are only extimates...but the reveal the details before you have committed to buy...Shop the money much more..Remember financing is much more expensive than the home and savings can be in the TENS of Thousands from lender to lender..

[Gayle]

Thank you, I will ask some more questions and shop around. Gayle

[Mac Walker]

The hazard insurance is your homeowners' insurance; you can get that (or may already have it) from a variety of sources.
The "Family Protection Insurance" sounds like credit life or disability insurance. These make the payments if you can't. They tend to be very expensive for what you get, and also sometimes quite limiting in what they cover and for how long.