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Answers (15)
- jwc2000
- Contributions:6
Thanks a ton for all your answers.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3427
From the consumer standpoint, Lender Paid is really just smoke and mirrors. From the broker standpoint, it means you have to charge the same % (or %+ Flat Fee) for each loan.
In your scenario, your Box 1 will be 1.5% of 153,000 (2,295) + the banks fee usually called an Admin Fee, 845 in your example.
Box 2 is the credit from the Bank for 468 reducing your charges to 2672. The Lender is paying the broker 2,295. You are paying the bank 845 + a loan discount of 1,827 for your selected rate. The 1,827 you pay + the 468 premium credit is where the brokers 2,295 comes from.
In your scenario, your Box 1 will be 1.5% of 153,000 (2,295) + the banks fee usually called an Admin Fee, 845 in your example.
Box 2 is the credit from the Bank for 468 reducing your charges to 2672. The Lender is paying the broker 2,295. You are paying the bank 845 + a loan discount of 1,827 for your selected rate. The 1,827 you pay + the 468 premium credit is where the brokers 2,295 comes from.
- Russell Smith, "RussellMortgage"
- Contributions:110
Compare what you have to a mortgage lender's quote which is less confusing. I hope that the mortgage broker is able to explain your estimates to satisfy your questions. If not, definitely check around.
- Geofrey Merino, "GMerino"
- Contributions:445
Correct A - Your Adjusted Origination Charges. That adds origination charge, points you pay for your rate and and credit's that would reduce your settlement charges.
- Clay Branch, "Georgia Loans"
- Contributions:7836
Discount point(s) are added to origination in box A
- Geofrey Merino, "GMerino"
- Contributions:445
That could also be the reason for the points. That should be listed under discount points. What is the $468.18 in credits?
- Clay Branch, "Georgia Loans"
- Contributions:7836
Has your lender ever given you a worksheet detailing each charge? I believe you are buying the rate down to 2.75, no?
- Geofrey Merino, "GMerino"
- Contributions:445
There could be a scenario where you have an option to do lender credits to cover your closing costs. That would result in taking a slightly higher interest rate as well. What is your current interest rate?
- Geofrey Merino, "GMerino"
- Contributions:445
Lender paid mi would be different from the broker compensation. Lender paid mortgage insurance is taking a slightly higher interest rate. The broker is charging you 1.5 in loan origination fees so that he/she may be paid for servicing your loan.
- Geofrey Merino, "GMerino"
- Contributions:445
Your rolling your costs into the loan.
- jwc2000
- Contributions:6
Loan balance right now is ~149,000. That's why I am confused... If I have a lender-paid option for Broker Compensation, then why am I paying any broker fees (application fee or the 1.5% of loan broker compensation)?
- Clay Branch, "Georgia Loans"
- Contributions:7836
If you are not rolling the $5183 into the loan amount then you are writing a check for $5183 at closing. Your loan amount is $153K, what is your loan balance now?
- Geofrey Merino, "GMerino"
- Contributions:445
I'm sure the lender paid mi is not being rolled into the loan. The loan origination fee and other prepaid items would be if that is how you structured your loan. The lender paid mi is seen with a higher interest rate. I would have to see a breakdown of fees on your loan to see what your looking at.
- jwc2000
- Contributions:6
Thanks for your reply. Correct me if I am wrong, but why would the origination fee (the 1.5% lender fee) be rolled into my mortgage as well with a Lender-paid option? It seems worse than just charging the loan point and app fee -- it seems they are double booking having a lender paid fee *AND* charging me 1.5, rolled into my loan...
- Geofrey Merino, "GMerino"
- Contributions:445
Run, from this loan is what I would suggest. The lender paid mi will be paid on your behalf with a slightly higher interest rate on the loan. It looks like he is charging a loan origination fee and an APPLICATION fee, man this guy/girl is really making money these days.
Shop around.
Shop around.
Lender Paid Question...
Hi...I am trying to understand "lender paid" -- I am looking at a refinance, I have a GFE and truth in lending forms from a broker...here are the numbers I am trying to understand:
Truth in Lending, Amount Financed: 149,728.05
GFE Initial Load Amount: 153,000
Mortgage Load Orginator Form: Lender Paid, 1.5% of load.
GFE A: Orgination of 3140 - 468.18 credit = 2671.82 .
GFE B: 2511.45
GFE Total Estimated settlement charges: 5183.27
My question is....if I have a "Lender Paid" option, then how does this make sense?
-- Listed on the load origination fee is 1.5 points on 153000 = $2295
-- The GFE A bit breaks out to a to the 2295 above, plus a $845 app fee.
If I am lender paid:
-- Am I paying an application fee?
-- Why does it appear the cost is rolled into my loan?
Regards,
~J
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