Am I getting a good deal on rates on monthly payments?

Greetings, My financial range is between $700,000 and $1 million but am concerned about interest rates and monthly payments. I have yet to receive the fee worksheet and/or loan estimate, so I cannot confirm the figures with 100% accuracy. Lennar Homes recently provided a quote of 4.75% for a 30-year fixed loan, which includes $24k in discount points and $10k in closing cost assistance for a purchase price of $700k with a 20% down payment and a loan amount of $560,000. Despite the closing cost assistance, I would still be responsible for 2.5% in discount points. This leaves only 0.50% for all other fees that will be included in the QM test, and that's before considering the loan officer's compensation. I am perplexed by these figures and question whether builders' financing companies are held to the same 3% QM test standards. Thank you in advance for your insight by jarred23 from Detroit, Michigan. Mar 1st 2023 Reply