Rate Lock Change? (loan officer, credit report, fees, loan)

[mrsclmn]

I'm a little confused about my rate lock and my loan officer doesn't seem to be able to explain it to me. So when we got our closing date last week, I called the loan officer to go ahead and lock our rate. She called me back Monday and told me that we were still at 5% with zero points and 1% origination. I think I posted on here about VA loan rates and asked about the 4.875% So anyway, when I spoke with her, I asked her if we would be able to get 4.875% and she said we would have to pay 2 discount points for that whereas at 5% we are paying zero points. Well, I told her to go ahead and lock at the 5% (because we plan on making 13 payments a year anyway to pay off the mortgage earlier). So I go online later that afternoon to look at our status, and it said the rate was now locked at 5% with .375 points. So I called and she didn't answer, so I sent an email, asking her what the .375 was for when she said we had zero points. She called me almost immediately and said it was actually a discount she was giving us, it was put in wrong, and she would go in and fix it internally. She said the online status site was more trouble than it was worth. So I go look at it just a few minutes ago, it says our rate is locked at 4.875% with 1 point.

Items Payable in Connection with the Loan

( 802) Loan Discount (Points)$ 1,578.21
( 804) Credit Report Fee$ 2.00
( 808) Tax Lien Service Fee ($)$ 82.00
( 812) Underwriting Fee$ 225.00
( 815) Flood Hazard Certification Fee$ 11.00
SUB TOTAL$ 1,898.21

Does that mean we now have to pay $1578 in addition to the 1% origination fee? When it was supposed to be zero points? Granted, we have the money to pay it, but would it be worth it?

[Fant]

I dont know why you have discrepanceis. If you are going by the GFE remember thats just an estimate based on a certain rate/point combination at the time the GFE was created. I would check with the lendor as to what your newly locked rate / orig points / discount points is and ask that she send it to you in email or writing.

[VictorBurek]

First of all, you are paying a point. It is called loan origination, but it is still a point. I would suggest that you contact your loan officer, have her send you a new gfe with exact fees. Than let her know if the fees are higher than what she originally quoted, and if there is more than 1 point loan origination you will pull your application and go with a new lender.

the items payable you listed, do not show the origination. your lender can call it discount or origination. So, cant answer your question whether this LO will add the origination or not. Again, call her and demand a new gfe with all exact fees. She should be able to provide that in a matter of a few minutes. If she shows the above fees and 1 point loan origination, you are getting a bad deal. If it is the above with no other fees, than that is a pretty good deal.

[AndrewSoss]

Originally Posted by VictorBurek

First of all, you are paying a point. It is called loan origination, but it is still a point. I would suggest that you contact your loan officer, have her send you a new gfe with exact fees. Than let her know if the fees are higher than what she originally quoted, and if there is more than 1 point loan origination you will pull your application and go with a new lender.

the items payable you listed, do not show the origination. your lender can call it discount or origination. So, cant answer your question whether this LO will add the origination or not. Again, call her and demand a new gfe with all exact fees. She should be able to provide that in a matter of a few minutes. If she shows the above fees and 1 point loan origination, you are getting a bad deal. If it is the above with no other fees, than that is a pretty good deal.

^^yeah, that.

[mrsclmn]

Thank you for suggesting I request a new GFE. I did and she emailed me one today. It appears she got rid of the loan origination and moved it to the discount point. But the rate on the GFE she gave me was 5%. I also noticed that our expected payment will be about $10 cheaper a month. That's not a lot per MONTH, but when you look at the bigger picture, we will be saving money in addition to making that extra payment per year.

Now on the other hand, I'm still a little questioning, because I thought the "origination fee" was the loan brokers payment for processing the loan? How will she get paid if she moved the origination fee to discount points? I wonder if she is possibly trying to compensate us for me sending my brother to her or something? I'm just curious. I'm grateful for saving money, I just don't want to beat anybody out of their money either.

[akck]

Originally Posted by mrsclmn

Thank you for suggesting I request a new GFE. I did and she emailed me one today. It appears she got rid of the loan origination and moved it to the discount point. But the rate on the GFE she gave me was 5%. I also noticed that our expected payment will be about $10 cheaper a month. That's not a lot per MONTH, but when you look at the bigger picture, we will be saving money in addition to making that extra payment per year.

Now on the other hand, I'm still a little questioning, because I thought the "origination fee" was the loan brokers payment for processing the loan? How will she get paid if she moved the origination fee to discount points? I wonder if she is possibly trying to compensate us for me sending my brother to her or something? I'm just curious. I'm grateful for saving money, I just don't want to beat anybody out of their money either.

I think she was doing you a favor. Loan origination fees are not deductable for taxes, discount points are. They get their money, they're just putting it into a different pocket.