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Old 10-05-2013, 09:56 PM
 
4 posts, read 10,700 times
Reputation: 10

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Hello everyone.

I'm in the process of purchasing a home, 30 year conventional.

417k loan

My GFE shows a loan origination charge of 450 in August

My new GFE shows a loan origination charge for 2,500 in October. I got it a few days ago.

Well know major bank.

I'm new to this. Why is there an increase? My rate lock ended in September and they extended it for me. They extended it because they the bank was not finished on their end. Is it due to this?

Thank you

Last edited by BillK2525; 10-05-2013 at 10:02 PM.. Reason: Oops sorry I typed it wrong
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Old 10-06-2013, 08:24 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
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Only with a change of circumstance can they increase the origination fee. Float to lock and relock are a change of circumstance. It sounds like when they relocked you, they did so at a higher fee. As long as they notified you within 72 hours of the relock, it's within guidelines.

Was it the bank that wasn't ready or the builder?
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Old 10-06-2013, 10:08 AM
 
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Hello smart money. I understand. Our bank wasn't ready. Its a house that has already been built. All along I kept hearing from our broker were going to get a jumbo loan at 450k, but underwriting felt I wasn't at my job long enough to get the jumbo (althought I fit all of the jumbo requirements; been at my job over 2 years). So, we hear of this as our rate lock was about to expire, and will put more money down. We are putting 35 percent down.

They said they're extending our rate, but I never was notified of a fee within 72 hours.

I assume banks can do this? Is this fair?

Thanks in advance!
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Old 10-06-2013, 10:46 AM
 
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Smart money,

I'm looking at my price range protection agreement...
1)
And it says my rate extension cost is 1,000 (which kinda stinks because we have been in contract since June and have been ready). The bank kept saying its a long process because you're a business owner. Isn't that on their end?

2)
My origination charge went up to 1500.

So it looks like I'm paying for the rate extension fee already. The 2535 origination charge I mentioned above exactly equals my origination charge + rate extension cost to the cent.

Are they changing my origination fee from 450 to 1500 because they said ill be ok for a jumbo, and then switched me to a regular loan?

3) I also see I'm being charged discount points of .375 percent of my loan cost. My broker never mentioned anything about points. He just said we've got you into our best rate at 3.875, and that was it.

It hurts a little bit that this is our first home purchase and my knowledge was essentially non-existent, but any further input would help.

Thanks!
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Old 10-06-2013, 11:16 AM
 
4 posts, read 10,700 times
Reputation: 10
Ok, sorry smart money. I did more homework and reviewed everything

I'm looking at my GFE now for when it was a jumbo, my adjusted origination charges shows
450 origination, 0 points and your adjusted origination charges at 450 total. This GFE was in August.

Now, my GFE at conventional shows origination charges of 1492, and now I'm paying points of 1563. Adjusted origination charges is 3,055. On top of that, I'm paying 1,042 dollars in rate lock fee. This is my most recent one. So total adjusted fee is 4,098.

This is not fair and I'm upset. My credit score is excellent, I'm putting down 35 percent. Every delay was on the banks end.

The rate lock fee, maybe I get that, even if the delay is on the banks end. But why am I being charged points now? Because I am putting more down!?

Why does my origination fee go up? Because we are going from a jumbo to a regular loan?!

At one point we heard NOTHING from the bank for 4 weeks.

Thoughts? Broker is not the best at getting back to me.

Last edited by BillK2525; 10-06-2013 at 12:27 PM..
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Old 10-07-2013, 08:57 AM
 
191 posts, read 370,122 times
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I am by far not a mortgage expert, but when you change loans, you change terms. I got the feeling from my bank that the loans they offer are like products. They each come with their own terms, fees, etc. So, going from a jumbo to a conventional, you switched loan products. And it may have higher fees. When we were shopping for a jumbo loan, we actually got lower fees and percentage rate if we went with the 100% financing, vs the 20-30% down. That seemed nutty to me, but it is what it is.

Jumbos are funny loans, because there are no rules. Every bank makes up their own regulations and fees for them, unlike conforming loans that are pretty much the same between banks. It is possible to get a better loan going jumbo. You can always put more on the principle after you close, or invest that money and probably get a higher return. Talk to your loan officer about all the loan options they have and the fees, crunch the numbers, and choose the one that works best for you.
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