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4.75 on a fha loan w/ 800 origination fee - am I being low balled

I'm applying for a fha loan on a house in western nc. Home savings of america has offered me 4.75 with an 800 origination fee. Other lenders act like thats impossible and a scam. Is it a trap or are the other lenders just trying to poison the well?
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May 04 2010 - Boone
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Answers (11)

Assuming 1.75% to 2.25% upfront mortgage insurance, the APR will be much higher than 4.75%. this should not be a reason to cancel.
if your comfortable with the loan agent, they provide good service and are compeditive in rates and fees countine with the agent.

rates are curently the lowest in the last 1.5 months. enjoy.
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May 05 2010
My recommendation would be to ask for an estimate in writing and inquire what needs to be done to "lock you in" You can also ask what the APR is. the APR takes into consideration the actual cost of the loan. If the APR is significantly higher than the 4.75% rate you are quoted, you are likely paying additional lender fees to secure that rate. Best of luck!
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May 04 2010
Yes.  Each lender's pricing is "slightly" different.  Each lender's fees can very quite a bit.  By our pricing and fees, your proposed senario is possible, with a VERY slim margin.
Russ Stack
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May 04 2010
"  It strikes at the best times ", very nice Irony
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May 04 2010
could be done with $0 origination fee. (and yes, 0 points).

There's always someone out there who justifies overcharging by calling the competition a low baller.
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May 04 2010
What's your credit score?
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May 04 2010
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The loan amount would be 212k - 3.5% down + 4.6k mortgage funding so ~209k, no points. 30 year fixed fha.
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May 04 2010
4.75%, 30 Fix, FHA, with ~$800 or less in orgination fees is available as long as the loan amount is greater than $100k.  The higher the loan amount above $100k the more your $800 orgination can be reduced.


Thanks Irony3/GV_ for recommendation.

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May 04 2010
dittos to irony's post. What is your loan amount?
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May 04 2010
800 orgination  fee/ did they disclosure any discount points or other mortgage lender fees? Offering a 30 year fixed and not a 5/1 "fixed for 5 years" ARM?  
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May 04 2010
Depending on the loan amount, it could be too high, 4.75% could be available without origination.

Call Chip Streater and see what he has to offer.
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May 04 2010
 
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4.75 on a fha loan w/ 800 origination fee - am I being low balled
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