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We just got our paperwork for our closing that is happening in 2 weeks and I think the fees are crazy. The mortgage will be for 108,000 and the interest is 4.25. The home offer was made 2 weeks ago and they wanted a fairly quick close.
Here is what is listed:
Origination Fee: 1082.00
Processing Fee: 495.00
Underwriting Fee: 275.00
Total Origination Charges: 1852.00
Appraisal Fee: 603.00
Flood Certification: 19.00
Courier Fee: 60.00
Lenders Title Insurance: 325.00
Plat Fee: 60.00
Recording Fee: 50.00
Settlement Fee: 325.00
Title Examination Fee: 450.00
Then under other fees it lists:
Broker Administration Fee: 424.00
Title Owners Title Insurance (optional) 249.00
To me, 1852.00 for origination fees on a 108,000 mortage seems crazy and then on top of that adding another 424.00 for a broker admin fee?
Can anyone give me some thoughts on this? My fear is we are only 2 weeks from closing so not sure I can even shop around at this point without delaying closing.
We just got our paperwork for our closing that is happening in 2 weeks and I think the fees are crazy. The mortgage will be for 108,000 and the interest is 4.25. The home offer was made 2 weeks ago and they wanted a fairly quick close.
Here is what is listed:
Origination Fee: 1082.00
Processing Fee: 495.00
Underwriting Fee: 275.00
Total Origination Charges: 1852.00
Appraisal Fee: 603.00
Flood Certification: 19.00
Courier Fee: 60.00
Lenders Title Insurance: 325.00
Plat Fee: 60.00
Recording Fee: 50.00
Settlement Fee: 325.00
Title Examination Fee: 450.00
Then under other fees it lists:
Broker Administration Fee: 424.00
Title Owners Title Insurance (optional) 249.00
To me, 1852.00 for origination fees on a 108,000 mortage seems crazy and then on top of that adding another 424.00 for a broker admin fee?
Can anyone give me some thoughts on this? My fear is we are only 2 weeks from closing so not sure I can even shop around at this point without delaying closing.
Is this a manufactured home? I will be frank, 4.25% with one point is a high rate. There's either a low score, no down payment, some facts have been left out of your scenario. State bond loan, with down payment assistance?
See, here's the deal - the lender must charge everyone the same fees across the board. So, if someone came along with the same criteria on the same date would get the same rate. And no one is going to charge higher than market, or they won't get loans. So I am thinking there is something about your loan that is driving up the rate. If they are truly that high, it's typically to slow down business. No one is that busy right now. Get another quote now, and if the rate is much lower, show it to your lender and negotiate a lower rate. If they don't agree, try to negotiate an extension on your contract. But one thing is clear, if you do and can move the loan, you need to move fast, like on Monday.
Is this a manufactured home? I will be frank, 4.25% with one point is a high rate. There's either a low score, no down payment, some facts have been left out of your scenario. State bond loan, with down payment assistance?
See, here's the deal - the lender must charge everyone the same fees across the board. So, if someone came along with the same criteria on the same date would get the same rate. And no one is going to charge higher than market, or they won't get loans. So I am thinking there is something about your loan that is driving up the rate. If they are truly that high, it's typically to slow down business. No one is that busy right now. Get another quote now, and if the rate is much lower, show it to your lender and negotiate a lower rate. If they don't agree, try to negotiate an extension on your contract. But one thing is clear, if you do and can move the loan, you need to move fast, like on Monday.
How did you find this lender?
Sorry-the loan is for an investment property so the rate is higher and actually lower than when we started the process. It is the lowest I have found. I am not concerned about the interest rate-but the fees seem excessive. I wanted to get thoughts on those.
What's the "Broker Administration Fee"? Did you already agree to that in a written contract with the Broker? Regardless, it sounds like a junk fee that you should be able to get them to remove.
Sorry-the loan is for an investment property so the rate is higher and actually lower than when we started the process. It is the lowest I have found. I am not concerned about the interest rate-but the fees seem excessive. I wanted to get thoughts on those.
The fees and rate go hand in hand, especially if you are only putting 20% down. To buy a home for an investment home with 20% down, it's an add-on of 2.75 points. The lender credit at 4.25% was likely a credit of 1.75, leaving a point to pay. The fees for the investor loan are just too much to get you to zero points. You can check into putting more down, but it's just the way investor loans are priced. The most expensive loan out there (by the way of points) is a minimum down investor loan, in a high-rise condo with a credit score of 700. It's all in the way the points are totalled up.
The fees and rate go hand in hand, especially if you are only putting 20% down. To buy a home for an investment home with 20% down, it's an add-on of 2.75 points. The lender credit at 4.25% was likely a credit of 1.75, leaving a point to pay. The fees for the investor loan are just too much to get you to zero points. You can check into putting more down, but it's just the way investor loans are priced. The most expensive loan out there (by the way of points) is a minimum down investor loan, in a high-rise condo with a credit score of 700. It's all in the way the points are totalled up.
+1 on this. Recently went through this and found out that there was an add-on at 20-25% down which as removed at 25%+ down so we put 25% down since we really didnt want to pay that much extra in fees.
@ OP - would it be possible for you to increase your down payment?
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