These are fees that provide no real value and are pure profit for the lender. You should try to negotiate these down or get them removed entirely. Many of these fees are just made up charges with official-sounding names.
Negotiate for a lower interest rate
The current rate of 8.625% is extremely high. Negotiate with the lender for a lower rate or shop around with other lenders for better offers.
Increase down payment to avoid PMI
Consider increasing your down payment to 20% to avoid paying Private Mortgage Insurance (PMI), which could save you significantly over the life of the loan.
Explore alternative loan products
Look into other loan products such as FHA loans or VA loans (if eligible) that might offer better terms or lower down payment requirements.
Negotiate seller concessions
Ask the seller to contribute to closing costs or provide other concessions to reduce your out-of-pocket expenses.
Consider mortgage points
Evaluate if paying points to lower your interest rate could save you money over the life of the loan, especially if you plan to stay in the home for a long time.