Found the house, now a mortgage question (Raleigh, Cary: mortgage broker, refinancing)

[MEM]

Hi! We finally found a house, offer accepted and have been shopping for loans. So far we have 3 responses - all with the same rate 4.75% - and all with a 1% origination fee.

One also tacked on a $4k committment fee

I am trying to get another GFE today from SunTrust.

My question is - does everyone alike - brokers, banks, credit unions - charge an origination fee? We went through a bank in the Northeast for our last house and closing costs were about half due to no origination fee.

TIA!

[CHTransplant]

Are you working with any mortgage brokers or just with the lenders directly? In my experience, one advantage of working with a broker is that they can shop it around for you at more places than you can, and can help you find a mortgage package that meets your requirements. In my experience, just about anything is possible in terms of points and fees, but of course the rate adjusts accordingly.

[zinner]

Wow 4k commitment fee, sounds like they are getting all their money up front and giving a low interest rate.

[MEM]

I've spoken with 2 mortgage brokers. Wells Fargo is the one who is charging a 1% origination fee + $4k committment fee + many other fees.

I just would like to compare the rate without an origination fee so I was wondering if anyone out there did that...

[CHTransplant]

There are so many variations its hard to compare without looking at all the loan details.

I'm in the middle of a refinancing. Among several choices presented to me were two 7/1 ARM options. One had no fees or costs, and a 5.00% rate. The other had a half-point origination fee, and another half-point or so in other closing costs, and had a rate of 4.75%.

[jerseygirlonthemove]

Sorry, but that doesn't sound right. If you'd like, I can put you in touch with our lender from BOA so that you have another point of comparison.

[dad2jules]

Originally Posted by MEM

I've spoken with 2 mortgage brokers. Wells Fargo is the one who is charging a 1% origination fee + $4k committment fee + many other fees.

I just would like to compare the rate without an origination fee so I was wondering if anyone out there did that...

I sent you a DM.

[nickmaps]

Call up a different wells fargo office. I called the one in Raleigh and got a guy who came off like a sleazy used car salesman within about 30 seconds. So I told him 'thanks but no thanks' and called the office in Cary.

The woman I got there has been a pleasure to work with and got me by far the best deal of anyone I'd talked to (this was about a month ago -- rates are now back down to 4.75) : 4.75% with 1% orig + ~$2k in relatively standard BS fees. I wasn't charged anything upfront until I wanted to lock my rate -- which required a ~$400 fee for ordering the appraisal on the house.

Send me a PM if you'd like her contact info (and info for some other brokers I've spoken with who have been helpful) -- including a reputable "online" broker who has great rates without an orig fee.

[NewUser]

My Wells Fargo person offered me this same rate last week (4.75% with 1% origination fee + $1300 in misc fees). The origination fee is negotiable as he also offered me a 5.125% rate with no origination fee.

[HomeHuntress]

Let them know that you're shopping around and check out their reaction. Don't be afraid to negotiate some of those fees or ask for explanations. "Wells Fargo is charging $X and you're charging $Y. Why should I go with you instead of them when your interest rates are the same?"