Posted by Domenic on May 05, 2006 at 10:20:18:
Hi Tony,
Sorry to say, but you’re getting stiffed. I would shop other brokers. Unless you are paying those fees to buy down an incredible rate, there’s no reason to pay excess of $3000 in fees not to mention other closing costs on a 100K property. Typically, I dont charge my customers any points, but try to get rebates back from the lenders. Ask him/her if they are getting any additional rebates, and if so how much. They need to diclose it anyway, so dont feel intimidated. Let me know if this helps???
Happy Friday
High Loan Originator & Broker Fees - Posted by Tony Newbie
Posted by Tony Newbie on May 05, 2006 at 10:09:46:
I have a credit rating of 760 and I am getting a loan for 99,000.00 which will be two loans. one for 19,800 at an interest rate of 13.875 and the other at 79,200 at 8.125% My broker is tacking on a 3% oringinator fee at a cost of 2,376.00. Also a processing fee of 500.00 and a mtg broker commision fee of 984.02. My question is, are these fees above average and what would be average for a loan such as this one?
Thanks,
Re: High Loan Originator & Broker Fees - Posted by Apollo
Posted by Apollo on May 05, 2006 at 19:29:03:
I agree with Domenic. You’re getting stiffed. I can’t think of too many instances where a broker would need to charge 3 points on a deal. That’s extremely excessive. And what the heck is a “mtg broker commission fee”? He’s charging you 3 points, and then he has the nerve to tack on a junk fee and call it commission? This guy has guts. If I were you, I’d run. Fast.
Re: High Loan Originator & Broker Fees - Posted by mortgageguy
Posted by mortgageguy on May 05, 2006 at 14:26:38:
contact me at 877-391-0829 I can beat that rate for 1.5 points. No processing fee.
the TRUTH and nothing but the TRUTH - Posted by Rob Ricker
Posted by Rob Ricker on May 05, 2006 at 12:59:59:
Is this an investment property?
Are you seeking 100% financing?
If so, you are no longer a prime borrower, you’ve have made yourself subprime. Your 760 credit score will not save you from all the rate bumps and fees that 100% NOO financing requires. Your broker can not make these bumps to your rate go away, and $2,376 is not bad on fees for a loan with no yield spread premium (if that’s the case).
As I take a look at my rate sheet today I could offer a 100% NOO loan with a 760 score for 8.875% or a 80/20 loan for 7.875% on the first. This is making ZERO MONEY to do the loan. Your second mortgage rate does seem a little bit high, but the first mortgage rate and fees your broker is charging seem very reasonable for what you’re asking for.
Here’s my suggestion if you want to save money. Purchase with 10% down and you’ll get somewhere around 7% on your first mortgage with lower fees (more like $1,000). Get the second mortgage AFTER CLOSING to pay
yourself back for your down payment if you absolutely must have that 10% back. It’s all about working the system.
Good Luck!