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Appreciate your thoughts on these fees for a refinance in this good faith estimate (GFE) I got on Monday this week.. rates have moved down a fraction since then I believe.
My local mortgage broker (recommended by a good friend BTW) is quoting me the following fees for a 30 year fixed refinance in the San Francisco Bay Area for $370K. I asked for a 1% point quote.
6.25% rate (no APR written on GFE)
15 day lock
no escrow / impound
1. Is it common to charge the 1% on top of the loan+fees as in this case?
2. There is both 801 and 808 which some people think is double dipping by the broker - is that common?
3. A Bank Admin fee of $500 seems like a lot on top of everything.. I have not seen this before in other GFEs.
He has told me that nothing is negotiable - take it or leave it.
Thanks for all your expert advice!
Peter
p.s. first time refinancing from my current 5% 5/1 ARM and due to expire in Nov 2009. With this loan we got load of junk fees added at the last minute so I want to understand what is going on this time much better
If I were you, I would definitely look elsewhere. Talk to brokers, but do not disregard a bank mortgage company. I work for a bank mortgage company, and we do not have all the junk fees in this good faith, and I don't think most do.
808 - mortgage broker's fee - $695
810 - processing fee - $695
811 - underwriting fee - $250
- Bank Admin Fee - $500
I could see one of these fees being realistic, but all of them is just too much. You can get a better deal, especially nowadays.
If I were you, I would definitely look elsewhere. Talk to brokers, but do not disregard a bank mortgage company. I work for a bank mortgage company, and we do not have all the junk fees in this good faith, and I don't think most do.
808 - mortgage broker's fee - $695
810 - processing fee - $695
811 - underwriting fee - $250
- Bank Admin Fee - $500
I could see one of these fees being realistic, but all of them is just too much. You can get a better deal, especially nowadays.
I agree, more than a little high and agree a bank owned mortgage company should be consulted. (They have the authority to waive fees). I also work for a bank mortgage company and our grand total on junk fees is $395 processing, $57 tax service and $22 flood cert (we do have appraisal and credit - but that's everywhere). When I was with a large national lender, the junk fees were below $500.
Shop it and then tell him you'll leave it. Of course, if you have to close by the end of the month, you may have no choice but to stay put.
Renriq02 is correct. Banks can charge less fees but give you a higher rate but so could this broker. I said on an earlier post, the only fee i would question is the broker fee of $695.
Those are definitely junk fees and they are definitely high. I would walk away. Though I haven't applied for a mortgage in a while, so maybe lenders are able to get away with this stuff now. When I was in the biz, a GFE like this would have been shredded and the loan officer would be hurting for business. I don't have my HUD1 handy from my last house, but I think the only junk fee I paid was $395 doc. prep. They are negotiable and I knew what I was doing, having worked in the industry. I just had my best friend (then still in the biz) recommend to me his most honest broker and tell him ahead of time that I knew how to shop a deal. Worked like a charm. I didn't even have to bust balls.
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