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Old 03-15-2009, 03:09 PM
 
596 posts, read 2,651,395 times
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She told me that she was giving me a deal, since she normally charges 1%. What did you pay for your origination fee?
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Old 03-15-2009, 03:13 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,667 times
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what is the rate?

if the rate is low then those are good fees
if the rate is high then they may not be good fees




Quote:
Originally Posted by jctx View Post
Ok. Looking at the GFE right now, the only charges are a .5% origination fee, an appraisal fee of $350, a flood determination fee of $12, and an application fee of $250. I didnt realize there was a fee to apply for a loan but I guess there is work involved in that process so it seems appropriate. Do these 800-899 items seem 'good' or appropriate to you all?
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Old 03-15-2009, 03:15 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,667 times
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concerned why?

what if the interest rate is 1.5% 30 yr fixed will you still tell someone to shop around?

Quote:
Originally Posted by acegolfer View Post
Shop around. I'm concerned about 0.5% origination fee. If you borrow $200k, this fee alone will be $1000.

When I found a better GFE, my lender matched it.
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Old 03-15-2009, 06:37 PM
 
Location: Wake Forest, NC
835 posts, read 3,737,394 times
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Quote:
Originally Posted by renriq02 View Post
concerned why?

what if the interest rate is 1.5% 30 yr fixed will you still tell someone to shop around?

Nice answer!

You can't judge a rate or fees without knowing the other as they go hand in hand.

Lower rate= higher fees
Lower fees = higher rate

You can't have lower rates and fees and you shouldn't have higher rates and fees.
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Old 03-16-2009, 03:14 AM
 
596 posts, read 2,651,395 times
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Rate was originally going to be 5% but now its looking more like 5.25% unless it goes down this week (portolio loan if that helps).

so are the rate and fees a good combination deal?
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Old 03-16-2009, 05:01 AM
 
Location: MID ATLANTIC
8,144 posts, read 20,003,661 times
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Quote:
Originally Posted by jctx View Post
Rate was originally going to be 5% but now its looking more like 5.25% unless it goes down this week (portolio loan if that helps).

so are the rate and fees a good combination deal?
It's "in the market" and is most likely a good quote.

Quoting rates is no longer, "I have XXX rate and XXX points, am I getting ripped off?" There are too many variables to answer that question. Is it a quote that can be delivered? In other words, is it a 30 day quote, but they are taking 60 days to close? I don't even recall if you mentioned the loan program......that's kind of major. Down payment? Credit score? Occupancy? Property type? And on and on.

The other thing, until you lock in, the estimates are worthless. That is huge....rates change, daily, sometimes hourly. Until you lock, the Good Faith should be used to only shop lender fees, not rate and points. If you think about it, on a 200K loan, one point is $2000. If you lock w/ 2 points, you just bumped your estimate by $4000. Also, not every loan has to have an origination fee......far from it. If you are being told there must be an origination fee, get quotes from other lenders. (The exception being some of the State Bond programs, some of those are structured where there must be an origination fee). If you are looking for a pre-approval, shop rates at the time of application, and then shop again, at the time of lock in.

Finally, it does you no good if lender #2 (or even #3) beats another lender's GFE if they can't close the loan. In fact, far more damage can result, especially if the market (rates) have moved since you changed lenders. Take the fair rate, don't become obsessed with finding the best rate. It's human nature to want the best, but that human nature can cost you, too.
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Old 03-16-2009, 12:18 PM
 
596 posts, read 2,651,395 times
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Ok thank you SmartMoney. Will do. Great info.
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