Broker charging me .05 point to lock - Posted by Tim (CT)

Posted by Mark on October 16, 2003 at 22:52:40:


I am a broker and depending on the individual and the situation I will request a rate lock fee. On rare occassions will I ask for this. It let’s me know that people are serious. I am way to busy to deal with tire kickers. If you are serious and can get the rate you are wanting, go someplace else. If you can’t get the rate take Tony’s advice and lock the rate and ask for confirmation.

Broker charging me .05 point to lock - Posted by Tim (CT)

Posted by Tim (CT) on October 15, 2003 at 07:56:23:

This seems a little odd to me. The broker I’m dealing with on a refi is trying to charge me a 1/2 a point to lock in the rate. That comes out to $570! Now, I can understand maybe charging a small fee to do this (i.e. $50 or $75). But, $570 is outrageous. I’m going to call him to talk about it but I wanted to get the opinion of others on this board. Does this seem high? Normal? Gouging?!?!

Thanks in advance.

Re: Broker charging me .05 point to lock - Posted by Rich

Posted by Rich on October 24, 2003 at 16:16:57:

I’m looking at one of my rate sheets right now and this lender charges .125 on the back end (to the broker) for a 45 day lock and nothing for a 30 day lock. If you do decide to lock, get a hardcopy confirmation (faxcopy) from the lender.

Re: Broker charging me .05 point to lock - Posted by Dimpil

Posted by Dimpil on October 17, 2003 at 17:04:33:

was it up front? IF so then don’t pay it. IF it’s in the closing cost and he sent you a GFE then you can ask him to waive it. You see the reasons could be 1) he’s losing money the lender is paying him so he’s making up for it by passing it on to you, 2) you are requesting a lock way into the future, like 60, 90, 120, days or 3) the lender could really be charging a lock fee.

I personaly don’t charge fees like that ‘junk’ comes to mind. I’d rather have a customer come back and refer people to me then a ‘hit & run’

Re: Broker charging me .05 point to lock - Posted by tony

Posted by tony on October 16, 2003 at 19:55:41:

I’ve heard of brokers charging 1pt to lock. Is it outrageous?..NO! Pay the half point (hell…you are only talking $500 bucks) and let the broker do his job.

Look at it this way. If you don’t pay a lock fee… then you may not get the rate you want. Besides, the broker will take you seriously and work harder to close the loan.

Remember…in life…you get what you pay for!