Currently buying a home in Nassau County, NY and am comparing loan estimates. Option A is Contour Mortgage while Option B is Better. From reviews alone, Contour seems to be the better option but it’s possible Better might offer more favorable terms.
Both are offering the same interest rate so the deviations are largely due to PMI, origination fees, and lender credits. Specifically, I wanted some clarification on:
Countour has higher origination fees than Better (which basically has none). Better is also offering lender credits. Would I be able to negotiate to get lender credits from Contour?
Can I negotiate the PMI?
Better is tacking the transfer tax on to the seller. Given that it is a seller’s market right now, I am not sure I would be able to get the seller to pay for this. Is it customary for the seller to pay this tax?
I’ll need to get clarification from Better but it seems I have to prepay 15 months of homeowners insurance. Is this normal? Shouldn’t that lower my monthly payment then?
If I remove the variables and go with the worst case estimates, it seems like I would be saving ~$4k with Better. What do you think is the more preferable loan?