funding fee AND origination fee (PMI, loan, escrow, fees)

[islaw]

We are to close in 3 days and being slapped with a 1% funding fee on a 30Y, 6.25%, 280k loan (net of 3% down). This is on top of the 1% origination fee and AFTER we've been previously assured that we won't have to pay the funding fee since we're putting down the 3% downpayment. It is not a VA loan but a conventional loan. Can the lender do this?

[renriq02]

FHA is 1.5% for the funding fee but it is FHA's fee...not the lenders.
VA loans have funding fees from 2.15-3.3% but it is the VA fee..not lenders.

If this is a regular conventional loan...then you need to ask them why they're charging so much?

Will there be PMI on this loan? If yes, then what is the monthly PMI payment?

Originally Posted by islaw

We are to close in 3 days and being slapped with a 1% funding fee on a 30Y, 6.25%, 280k loan (net of 3% down). This is on top of the 1% origination fee and AFTER we've been previously assured that we won't have to pay the funding fee since we're putting down the 3% downpayment. It is not a VA loan but a conventional loan. Can the lender do this?

[theo54s]

three lender fee conventional loan

[Mistletoe]

I have a question also...We are closing escrow at the end of the month with a VA loan. They are charging 1% origination fee as well as 1.25% VA funding fee. Is this right? Does one fee go to Wells Fargo and the other to VA?

[renriq02]

if you're working with a broker then the 1% can go to the broker
if it's with well then it goes to wells

the funding fee goes to VA

Originally Posted by Mistletoe

I have a question also...We are closing escrow at the end of the month with a VA loan. They are charging 1% origination fee as well as 1.25% VA funding fee. Is this right? Does one fee go to Wells Fargo and the other to VA?

[NJ987654]

Originally Posted by Mistletoe

I have a question also...We are closing escrow at the end of the month with a VA loan. They are charging 1% origination fee as well as 1.25% VA funding fee. Is this right? Does one fee go to Wells Fargo and the other to VA?

This is correct. The 1.25% is the VA fee. The 1% origination fee goes to Wells. You could ask them what the rate would be if you did 0% origination. The rate will be higher but the fees will be less. You would have to compare both scenarios and determine which is better for you

[NJ987654]

Originally Posted by islaw

We are to close in 3 days and being slapped with a 1% funding fee on a 30Y, 6.25%, 280k loan (net of 3% down). This is on top of the 1% origination fee and AFTER we've been previously assured that we won't have to pay the funding fee since we're putting down the 3% downpayment. It is not a VA loan but a conventional loan. Can the lender do this?

3% down payment conventional seems like an odd product in this market. Most lenders are requiring 5%, sometimes more if the house is in the declining market. Confirm that the loan is conventional and ask point blank why the fees are higher than quoted.