help me in closing cost doubts (loan officer, premium, fee, rate)

[Kl_1793]

hi

what is the loan discount fee? the loan discount fee apro. 6k is paying by lender and what is the commitment fee?.. which i charged about $325
Thanks

[renriq02]

6k is being paid by lender?

what is the amount AFTER they pay the 6k?

I dont know any lender paying 6k....that's a lot

Originally Posted by Kl_1793

hi

what is the loan discount fee? the loan discount fee apro. 6k is paying by lender and what is the commitment fee?.. which i charged about $325
Thanks

[mbmouse]

Something doesn't sound right to me either, but without knowing more details about what kind of loan you are doing, with who, how the contract is done and so forth it is hard to tell, sorry.

[corel]

The "loan discount fee", I'm not sure if you are talking about the YSP (yield spread premium) or rebate. That is monies paid by the lender, to the loan officer (commission received for the loan officer bringing that lender the loan). If you have the name of the fee correct, the "discount fee" is paid (by the borrower) to the lender to buy down the rate.

As far as the "commitment fee", I've never heard of that before, it may be an insentive for you to remain with that broker (if you leave them for another broker they at least get that $325).

If you are confused by the closing cost, have your loan officer go through them line by line and explain them to you until you understand clearly.
Geez, I hated this when I was working as a loan officer. I worked hard to make sure my clients knew where there money was going, and that they understood the process step by step. The loan officers that make their clients feel in the dark give the profession a bad name.

Keep in mind though, I'm guessing at these, because you questions are a little unclear.

Where is the property at that you are financing?

[Kl_1793]

sorry its not in lender lane but its on sellers lane but if any one knows pl. clarify whats that loan discount fee and also what is commitment fee?

[renriq02]

there's only 2 columns....buyers....sellers on the HUD.

Originally Posted by Kl_1793

sorry its not in lender lane but its on sellers lane but if any one knows pl. clarify whats that loan discount fee and also what is commitment fee?

[mbmouse]

I think he/she means lane=colum. If the "discount fee" is on the sellers side, I am assuming if you look at your contract, it will say something to the effect of " seller to buy down the rate 1 point (or 1/2 or 2, or what ever)".
This means as part of the negotiating process, your RE agent got you good deal.
Commitment fee....not sure there.

[Kl_1793]

thank you mouse for your understanding