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Replies (15)
The fees are actually in line with the exception of the $200 broker commission which is perplexing. The only reason to have that there would be to attempt to mislead you into believing they are doing your loan for $200. At 5%, the $3500 origination is pure profit based on Friday's rates with maybe a little more from YSP, so you could possibly do a hint better, but if you like who you are working with then just ask them about it and see what they say. The title insurance is a bit bloated, but it will be whatever it will be so don't worry too much about that. Have them update it tomorrow (Monday) as things will certainly be different anyway.
- Orin Sherman MBA
- Contributions:53
In my experience that is a good number. Closing costs that remain under 3% of sales price is a good rule.
- Timothy Sutherland, "SunTrust"
- Contributions:619
20% down with 770 score; purchase transaction.
On Thursday (2 July) 5% was 0.625 points for a 30 day lock (origination fee) which is $1,875; well below the $3,500 fee as shown.
My opinion of the broker fee of $200 is the same as Gergorio's, it seems perplexing.
$795 to underwrite the file seems high also. $100 to $200 would be more in line.
On Thursday (2 July) 5% was 0.625 points for a 30 day lock (origination fee) which is $1,875; well below the $3,500 fee as shown.
My opinion of the broker fee of $200 is the same as Gergorio's, it seems perplexing.
$795 to underwrite the file seems high also. $100 to $200 would be more in line.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
TMP828,
Looking over the fees you posted, most seen usual and customary but two:
1. Loan origination fee is high. In my opinion, it is about $700.00 too high.
2. Broker Commission. What is that? The broker is already getting paid on the origination fee. No need to tack on more.
Concerning the underwriting fee of $795.00. Sadly, that is what some investors are charging to underwrite a file. So, your broker should give you a broker credit for that fee and get rid of the broker commission fee of $200.00.
Looking over the fees you posted, most seen usual and customary but two:
1. Loan origination fee is high. In my opinion, it is about $700.00 too high.
2. Broker Commission. What is that? The broker is already getting paid on the origination fee. No need to tack on more.
Concerning the underwriting fee of $795.00. Sadly, that is what some investors are charging to underwrite a file. So, your broker should give you a broker credit for that fee and get rid of the broker commission fee of $200.00.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Timothy,
I think the $795 is the lender fee. Underwriting/Admin Fee. Sun Trust charges $798.00 for that..... Sun Trusts SoCal Wholesale 30F rates today at 4.990% with a 30 day lock has a 0.779% Cost. At 5.125% a 0.353% Cost.
You did good TMP828. Now see if you can lock that rate. ..... Happy funding, Rudi Hofmann
I think the $795 is the lender fee. Underwriting/Admin Fee. Sun Trust charges $798.00 for that..... Sun Trusts SoCal Wholesale 30F rates today at 4.990% with a 30 day lock has a 0.779% Cost. At 5.125% a 0.353% Cost.
You did good TMP828. Now see if you can lock that rate. ..... Happy funding, Rudi Hofmann
- Timothy Sutherland, "SunTrust"
- Contributions:619
Rudi,
I'm retail. You guys keep trying to compare me to the correspondent rate sheets you brokers get which is like comparing apples to tennis shoes.
Our admin fee is $395 and processing fee is $160. You'll see those on any of my quotes.
5% in the above scenario is still 0.625 total points today (6 July) for a 30 day lock.
I'm glad to see that many of you do broker to us and want to thank you for your business.
I'm retail. You guys keep trying to compare me to the correspondent rate sheets you brokers get which is like comparing apples to tennis shoes.
Our admin fee is $395 and processing fee is $160. You'll see those on any of my quotes.
5% in the above scenario is still 0.625 total points today (6 July) for a 30 day lock.
I'm glad to see that many of you do broker to us and want to thank you for your business.
- Gary Kinberg, "Gary Kinberg"
- Contributions:229
Everything seems 20% high, the broker is reasonable but not outrageous. Title varies from state to state and title company to title company so you can shop that at your own risk of quality service. the closing fee seems hundreds high but again that can be a state thing. Classically, origination fees are 1% but that is discretionary. Please keep in mind you will be setting up escrows at additional expense.
- TMP828
- Contributions:4
I received another GFE today from a local broker found in ZMM. The rate is 4.875%. Most of the fees are in line with the previous GFE except the following:
801 Origination fee (.25%) $750
802 Discount Fee (.125%) $375
808 Broker Fee $995
1112 Title Ins (lender) $490
Does title insurance seems reasonable or low? Overall, the total cost is around $2k lower. Can I still negotiate with the 1st broker although I had signed the Loan Disclosure Stmt & provided all income docs? If he can't lower his fee, am I stuck or can I go with another broker?
Thank you all for your advice.
801 Origination fee (.25%) $750
802 Discount Fee (.125%) $375
808 Broker Fee $995
1112 Title Ins (lender) $490
Does title insurance seems reasonable or low? Overall, the total cost is around $2k lower. Can I still negotiate with the 1st broker although I had signed the Loan Disclosure Stmt & provided all income docs? If he can't lower his fee, am I stuck or can I go with another broker?
Thank you all for your advice.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3420
If it is a purchase transaction, you will not have any control over the title insurance fee. It is customary for seller to select the provider and the fee will be whatever that provider charges. So you can eliminate that part from your comparison as neither broker/lender can control it.
It is quite odd that both of your quotes include an origination fee and a broker fee. These both go to the broker, so separating it is unnecessary and frankly it is unusual. Gregorio said it best in thinking it might be deceptive to give you a false impression of what the broker is earning.
If you are already in escrow, you need to pick who you feel is best and get moving on your loan approval. It shouldn't matter if you signed with someone else and gave initial paperwork, that does not preclude from using another lender. If you are still out looking for houses, then you definitely are free to continue to get loan estimates.
It is quite odd that both of your quotes include an origination fee and a broker fee. These both go to the broker, so separating it is unnecessary and frankly it is unusual. Gregorio said it best in thinking it might be deceptive to give you a false impression of what the broker is earning.
If you are already in escrow, you need to pick who you feel is best and get moving on your loan approval. It shouldn't matter if you signed with someone else and gave initial paperwork, that does not preclude from using another lender. If you are still out looking for houses, then you definitely are free to continue to get loan estimates.
- Wonder Why
- Contributions:44
Your loan officer is making a lot of money off your loan, they don't need the additional broker fees. Tell him/her to remove it.
- David Nezri, "Direct Lender"
- Contributions:265
#801 seems high
#808 should be removed
or #810 or #811 should be reduced.
#808 should be removed
or #810 or #811 should be reduced.
- Richard Arreguin, "ahltexas.com"
- Contributions:21
Many of the #8xx fees vary with mortgage quotes. The lower the better for the consumer. Those fees are for doing business with that broker. Unless you're related to that broker, shop around.
Title insurance cost are estimated by the broker. Do not be overly concern on it.
Title insurance cost are estimated by the broker. Do not be overly concern on it.
that goodfaith should be with a rate of 4.75%.
550 processing fee? sounds like a net branch.795 underwriting - net branchbroker commission - thats odd
850 settlement fee? thats high. I would use capital title. 295 fee and they come to your house.
they may be listing high to go with that new law. But it shouldn't be that high. did they put any prepaid days? or escrow account? depending on the proprty taxes and proprty insurance , that would be another 3000 dollars.
the 800 fees are all neg.
someone made the comment about the title insurance cost. in texas that cost would be close to 3000.00.for lenders and an owners policy. A good lender(wellsfargo) would never let a broker charge an origination fee and a broker fee. its the same thing.You can apply as many times as you want just write a note to the underwriter of the final lender.
550 processing fee? sounds like a net branch.795 underwriting - net branchbroker commission - thats odd
850 settlement fee? thats high. I would use capital title. 295 fee and they come to your house.
they may be listing high to go with that new law. But it shouldn't be that high. did they put any prepaid days? or escrow account? depending on the proprty taxes and proprty insurance , that would be another 3000 dollars.
the 800 fees are all neg.
someone made the comment about the title insurance cost. in texas that cost would be close to 3000.00.for lenders and an owners policy. A good lender(wellsfargo) would never let a broker charge an origination fee and a broker fee. its the same thing.You can apply as many times as you want just write a note to the underwriter of the final lender.
- Clay Branch, "Georgia Loans"
- Contributions:7834
Philip, why are you quoting a rate on a thread that's almost 2 months old?
- Robert Lowery, "Bob Lowery"
- Contributions:2097
"in texas that cost would be close to 3000.00.for lenders and an owners policy"
That is great. This OP is in California.
And, Clay brings up a great point. You can not compare rates today versus July 5th.
That is great. This OP is in California.
And, Clay brings up a great point. You can not compare rates today versus July 5th.
$7,700 in estimated closing cost seems high?
801 Origination fee (flat) 3,500
803 Appraisal fee 350
804 Credit report 20
808 Broker commission 200
809 Tax service fee 30
810 Processing fee 550
811 Underwriting fee 795
812 Wire transfer fee 35
Flood Certification 18
1100 Settlement/Escrow fee 850
1105 Doc Prep fee 150
1106 Notary fee 150
1108 Title Insurance 1,035
1201 Recording fee 100
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