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Is origination fee of $2600 reasonable for a loan of 146K?

Purchase price is 183K and I am putting 20% down & have a credit score of 725+. Appraisal, credit report, flood certification, tax service, recoding fee, lender title insurance, owner title insurance will cost me approximately 1900. Is this reasonable?
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August 16 2012 - Houston
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So, looking at the entire picture here I think that you are paying way to much in closing costs and the rate that was quoted is okay but it makes me think that they quoted you a rate with impounds.  Save some money and contact another lender or two.  It will not hurt you to do so.
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August 17 2012
When you purchase or refinance you have a choice to opt in or opt out.  When you have an impound account it is a reserve account that the lender sets up to pay your taxes and insurance when they are due.  Having "impounds" means that your taxes and insurance will be included in the mortgage payment.  It also means that you will have to pay more in closing costs in order to initiate an impound account.  Lenders may also have a slightly better interest rate if you choose to have an impound account. 

I wonder if the lender quoted a rate without an impound account? 
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August 17 2012
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I will be paying taxes and insurance separately. I am not sure what impound means.
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August 17 2012
Will you be paying your taxes and insurance with your mortgage payment? If so does your estimate include any impounds?
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August 16 2012
Wow, that is a sign to look for another loan.
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August 16 2012
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Thanks for the response! The rate quoted was 3.75%. Origination fee of 2500 is in addition to the 1900 for appraisal, credit report, flood certification, tax service, recoding fee, lender title insurance, owner title insurance etc
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August 16 2012

Your title fees seem okay.  A quote from a national vendor:

Lender's Policy:  1093.98
Closing coordination:  350.00
Policy Guarantee:  5.00
EPA (T-36):  25.00
Not yet due and payable:  5.00
PUD (T-17):  25
Survey:  64.31
Mineral:  50.00
Government recording:  98.00
Escrow:  125.00
Owner's policy:  192.24

Total 2033.53

Now, loan origination fee, $2600.00?  is this extra to what you are paying or total is $2600.00? 

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August 16 2012
Profile picture for Go Huskers
" Hey Husker fan...    it would be helpful if you answered this persons question instead of bashing on other peoples answers. "

Hey Brian... I did answer their question and I didn't bash your answer or anyone else's, I corrected it. There is a difference. 


" How do you know that this borrower is only talking about origination fee and not adjusted origination fee? "

Interesting that you ask that because that was my precise point. If I may remind you of what you said;

" With a higher rate, you would get a credit from the lender and that origination fee would be lower. "

You ASSUMED they were talking about the origination fee without asking yourself the very same question you just asked me. 

" How do you know that this borrower is only talking about origination fee and not adjusted origination fee "

To that... I say EXACTLY! Which is why I answered as I did so they are on notice that there is a difference. 

" The rate and lender credit DOES make a difference in the total closing costs REGARDLESS how you want to label them. "

I never said it didn't make a difference, I said it mattered what they were referring to as the "origination fee." And if you didn't get that from my post, I don't know what to tell you. You jumped on it and assumed they meant adjusted origination even though they clearly said ORIGINATION FEE. As I pointed out, the ORIGINATION FEE does not change, the adjusted origination does. It should be the goal to educate.

You should try it.
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August 16 2012
Hey Husker fan...    it would be helpful if you answered this persons question instead of bashing on other peoples answers. If you don't have anything nice to say, then keep your mouth shut.  

How do you know that this borrower is only talking about origination fee and not adjusted origination fee? Most buyers are not versed enough in mortgage terms to know the difference.  

The rate and lender credit DOES make a difference in the total closing costs REGARDLESS how you want to label them.
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August 16 2012
Very typical for seller to pay Owner Title Policy.
Is this a builder? They usually don't pay them..... It is part of their '3-Card Monty' game.

Hard to tell if this is good deal without an estimated fee sheet. Rate & Fee go hand in hand. Higher rate = lower fees, ect.


Send me the estimated fee sheet and I will look at it with you.
I won't try to 'beat the deal' by a few hundred to steal the deal.
I will just reply with what is what.

I am traveling. So Monday may be best for us.
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August 16 2012
Profile picture for Go Huskers
"  With a higher rate, you would get a credit from the lender and that origination fee would be lower."

No it wouldn't, the ADJUSTED origination fee is what would be lower. The origination fee is what it is and by law, has nothing to do with the rate offered. The ORIGINATION FEE would never changed based on the rate.

No, it's not semantics, it makes a difference in how the borrower analyzes the deal they are offered. $2600 on line #1 page 2 of the GFE (Our Origination Charge) is very different than it $2600 in box A page 2 of the GFE (Your Adjusted Origination Charges)
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August 16 2012
It all depends on the rate you are getting...

If you locked in a good rate, then it is not that unreasonable.   With a higher rate, you would get a credit from the lender and that origination fee would be lower.
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August 16 2012
 
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