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Answers (24)
- Tap012
- Contributions:277
Update:
I called WAMU and they told me they could give me 5.0% for a few thousand less than what I'm paying with my current lender. However, they don't know if they could get loan approval by the close of my escrow. So I guess I probably could have saved some money.
Well, I have loan approval now but decided to unlock that 5.0% when I saw rates go down a few days ago. But since then, the 10 year bond shot up and rates went up even higher then when I locked it. Now, it's either 5.5% no points or the 5.0% for $3000. I just decided to lock the 5.0% but roll that 3K into the loan so I don't have to pay it up front. Whatever, all this loan business is nonsense and gives me a headache. I'll just wait a few years and refinance with a lender that charges me less.
I called WAMU and they told me they could give me 5.0% for a few thousand less than what I'm paying with my current lender. However, they don't know if they could get loan approval by the close of my escrow. So I guess I probably could have saved some money.
Well, I have loan approval now but decided to unlock that 5.0% when I saw rates go down a few days ago. But since then, the 10 year bond shot up and rates went up even higher then when I locked it. Now, it's either 5.5% no points or the 5.0% for $3000. I just decided to lock the 5.0% but roll that 3K into the loan so I don't have to pay it up front. Whatever, all this loan business is nonsense and gives me a headache. I'll just wait a few years and refinance with a lender that charges me less.
As for the processing and U/W, a $800 processing fee is not out of line. I use a contract processor for FHA and it's $795. The lender that currently offers me the best FHA rates requires a $700 U/W fee and $295 Doc prep. ($995 total) These are actual fees that must be paid. If you saw that on my quote would you call it junk? I think it's highly irresponsible to steer them into jumping ship especially when we don't even know what rates tomorrow will bring. We have no idea of knowing when this was locked or who it was locked with.
I subscribe to the bird in the hand school of business. Nothing wrong with exploring alternatives, but I still believe the OP should go back to the person that has already started the process and find out what everything is for.
My $.02
- Tap012
- Contributions:277
Well I put a new loan quote request in. If I could save a few thousand than I think it's worth changing. However, could I have two loan approval processes happening at one time? Also, my lender already talked to escrow and everything. How will that affect escrow if I change lenders. How does the seller view it since I had a pre-approval letter from my previous lender. I've heard of a backup mortgage loan in process but how does that work?
- Joe Cafiero, "Joe Cafiero"
- Contributions:3217
dvracer....I am with Clay on this one see what else is out there. Forget about the underwriting,processing, and administration fees. Those are all pass throguhs to the bank. If I offered you 5% with those origination, discount, and broker fees to go along with my SRP I would be making close to $9000 on the file. He is ripping you off.
- Clay Branch, "Georgia Loans"
- Contributions:7809
( cont'd from last post ) My opinion of your fees is based on you having a 620 or higher credit score. If your score is below 600 then that would explain the $2000 loan discount. Is your score over 620? I just looked at quotes in CA and saw an FHA quote for 5% and no origination or discount fee. Even though many lenders' pipelines are full and lead times out 2, 3, 4 weeks, there are several who are not out that far and several are prioritizing purchases and giving 1-2 day underwriting turnarounds. If you are closing the end of Feb., put a quote request in here and put in your notes that you need a 4 day or less underwriting turn time. If your score is over 620, I think you will save thousands on Zillow.
- Clay Branch, "Georgia Loans"
- Contributions:7809
dvracer, I agree with Gregorio 99% of the time, but in this case I think you are paying way too much. The origination fee was quoted LOW because that is the fee eveyone understands and is the 1st impression when you read it. FHA does not allow more than 1 point so to make it look attractive, they split it over origination and mrotgage broker fees. Loan discount is a joke, since you are paying 5%. There is no rate cost for 5% and they are keeping that fee too, just like the orig fee. So, now they are up to $4690 profit but to add insult to injury, they charge you an $800 processing fee which is 400-500 too high, $890 underwriting fee ( high but acceptable ), $390 loan admin is junk and just more profit, 300 application fee also more junk and more profit. I estimate they are keeping $6180. ( cont'd to next thread )
- Allen Mische, "Allen Mische"
- Contributions:33
There is plenty of time for you to choose a different lender. You should save thousands of dollars in unnecessary fees. But you should act quickly.
Well if they have $2000 as a loan discount, it MUST be going to rate improvement so they cannot collect YSP. (Make sure on the settlement statement you get before closing this does not suddenly change names to an origination fee or something else, if it does, then it's junk)
This means that their profit is the origination fee and the broker fee. I'm not sure why the choose to show these as 2 different fees when they could just add them and show it as one. ($2690 which is a fair profit) Maybe it looks better that way, who knows. The application and admin fees seem a bit junkie but otherwise it's fine. Ask them to file the application fee in the circular bin and close it with a smile.
- Tap012
- Contributions:277
Ok here is a close estimate of my gfe from lines 800 to 815. I assume all other fees are constant.
loan origination fee 1340
loan discount 2000
broker fee 1350
processing fee 800
underwriting fee 890
loan administration fee 390
application fee 300
flood certification 25
Not included in that is the $400 appraisal fee since it was paid before closing. So are those figures decent or are they all looking high.
loan origination fee 1340
loan discount 2000
broker fee 1350
processing fee 800
underwriting fee 890
loan administration fee 390
application fee 300
flood certification 25
Not included in that is the $400 appraisal fee since it was paid before closing. So are those figures decent or are they all looking high.
- tchau_99
- Contributions:137
there are allot of hidden fees.....the first one you notice is the appraisal fee of $400.
it is the smallest fee compare to other fees.
underwriting
admin
crabs fee
service fee
coffee fees
last minute sneak in fees.
i am trying to thru a few non-sense fee
if don't get this warning, wait till you see the paper....
Pause and do not anything...... look at the fees and ask yourself.....
Is it worth it?
If it is worth it, then buy the home or REFI.
Otherwise, cancel the loan or REFI.... Walk away clean and lost only the appraisal fee.
Hope this is helpful.
it is the smallest fee compare to other fees.
underwriting
admin
crabs fee
service fee
coffee fees
last minute sneak in fees.
i am trying to thru a few non-sense fee
if don't get this warning, wait till you see the paper....
Pause and do not anything...... look at the fees and ask yourself.....
Is it worth it?
If it is worth it, then buy the home or REFI.
Otherwise, cancel the loan or REFI.... Walk away clean and lost only the appraisal fee.
Hope this is helpful.
Well, I don't know when you locked or what the fees are for, so I assume they are valid. If your GFE shows an actual discount point on line 802 then you are actually paying that amount to buy the rate down. If it shows it as an origination fee or broker fee, then it's probably not buying the rate down but rather going towards profit; which is fine if that is what they are charging, you should just be told what it is you are paying for.
Always ask questions of your LO, they usually welcome it.
- Tap012
- Contributions:277
Ok I will probably stick with them just because I'm just waiting for the approval now and all the paperwork is done. I should ask an explanation of all the fees though.
In your opinion, knowing that the UFMIP is not included with that 11,000, is the cost way too much or is it just on the high end. I can deal with paying a little extra but if these numbers are really way off compared to other lenders then I'd have to reconsider.
In your opinion, knowing that the UFMIP is not included with that 11,000, is the cost way too much or is it just on the high end. I can deal with paying a little extra but if these numbers are really way off compared to other lenders then I'd have to reconsider.
You should stick with the person you are working with, but I would definately ask them what all the fees are for. Have them explain what everything is and who gets it.
- Tap012
- Contributions:277
So if you add that, I'm looking at 16,000 costs even though I don't pay that 4800 at closing? Wow maybe I am getting ripped off...
- Tap012
- Contributions:277
No that number is not part of the 11000. That would be in addition to the 11000, but as you said it's financed and I don't have to pay it at closing.
Check line 902 of your GFE. (Should be $4882,50) This is the Up Front Mortgage Insurance Premium. It's usually added to your loan amount and financed. What I was saying is that if you were including this number in the $11,000 then 5% is probably ok. If you have this number showing as financed and still have $11,000 in closing costs then you might want to call your LO and ask them to break everything down for you so you know what is what.
- Tap012
- Contributions:277
To Gregorio,
To clarify, I am not sure what you mean by UFMIP. There is a mortgage insurance premium of 4600 being added onto my loan, which I will pay per month. I am only paying one month of it in my closing which is only 100. I'm not sure if thats the UFMIP you're talking about.
Joe, yea I don't know how to not pay it though. I feel like I've gone far with this lender and already paid an appraisal fee. If rates have gone up which I've seen on the news, paying to get that lower rate seems like the norm in the mortgage process. He gave me two options pretty much and I had to choose one or float it. I didn't want to take the chance of floating it and the rate going higher.
To clarify, I am not sure what you mean by UFMIP. There is a mortgage insurance premium of 4600 being added onto my loan, which I will pay per month. I am only paying one month of it in my closing which is only 100. I'm not sure if thats the UFMIP you're talking about.
Joe, yea I don't know how to not pay it though. I feel like I've gone far with this lender and already paid an appraisal fee. If rates have gone up which I've seen on the news, paying to get that lower rate seems like the norm in the mortgage process. He gave me two options pretty much and I had to choose one or float it. I didn't want to take the chance of floating it and the rate going higher.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3217
dvracer. Did you see my post before about there being no difference in the pricing between 5.0% and 5.375%. Do not pay the extra $2000. The broker has just used the threat of rising rates to charge you another $2000.
- Drew Sygit, "Drew Sygit"
- Contributions:13
Mortgage rates are dictated by the sale of Mortgaged Backed Securities (MBS)
Conforming (FNMA/FHLMC) have their MBS, FHA has an MBS called GNMA.
Since they sell separately, the rates are often different.
Fees on FHA loans are often higher too, with an Origination Fee being pretty standard.
One word of caution - you get what you pay for. The lowest rate&fees are only the best deal if they're delivered.
A MORTGAGE IS NOT A COMMODITY!
- Tap012
- Contributions:277
Yes I did post before. The thing is I've been looking at my quotes off of zillow and I see some lenders offering lower than 5% like 4.875% or 4.7% with something like $3000 to $4000 fees. I'm not sure how it equates to what I'm getting.
It is good to know that the 11,000 which does include everything including prepaids is adequate and I'm not being ripped off. I was offered a 5.38% rate with 9,000 closing costs but opted to go for the lower rate.
It is good to know that the 11,000 which does include everything including prepaids is adequate and I'm not being ripped off. I was offered a 5.38% rate with 9,000 closing costs but opted to go for the lower rate.
I think I remember you posting before about needing to go FHA because of gift funds. FYI, You don't necessarily have to go FHA for that reason. As for the closing costs, I would say that 5% with that figure for closing would be adequate if it includes the UFMIP and all the prepaids. If not, then it's probably too high.
I would suggest that you ask your LO if you can qualify for conventional at 90%, it's an option you may want to explore.
I would suggest that you ask your LO if you can qualify for conventional at 90%, it's an option you may want to explore.
- Tap012
- Contributions:277
Well I'd prefer not to get into too many specifics for privacy so I'll give you some estimates. I'm putting 10% down on a $310,000 house and it has to be an FHA loan. I'm a first time home buyer, and my credit score is around 750. My closing is estimated at almost 11,000 for all closing costs (includes title, taxes, MIP, interest before closing everything) to get the 5.0% rate. The house is in CA.
Post a complete list of the fees you are being charged as well as the loan amount and down payment.
The more details you add, the easier it will be to evaluate what you have been offered.
The more details you add, the easier it will be to evaluate what you have been offered.
Is there a different rate for a 30 year fixed FHA loan vs conventional loan and some other questions
The reason I ask is sometimes I don't see an application fee or new loan administration fee or other fees that I have on my good faith estimate from my lender. Also, would these fees be different for an FHA loan?
I am new to this whole mortgage loan process so don't really know how it works. My close of escrow is the last week of February and I have already locked in at 5.0% 30 year fixed rate, but I kind of feel like I'm paying too much in closing costs for it. Also, I don't know if there is enough time to find another lender and go through the whole process again for approval. I have already paid a $400 appraisal fee upfront.
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