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Replies (8)
- Hamp Yonce, "Zilluminati"
- Contributions:3463
The folks who will be able to help you are going to want to know the rate and length of term on the loan. The fees may be perfectly reasonable if the rate is low enough. If you are paying those fees, and not getting the "best", or at least a "better" rate, then they are not good. Those fees are really more likeproduct pricing adjustments, rather than "processing fees", as you called them.
To try to restate concisely, if as a result of those two fees, you are receiving the same rate a person who had a loan under 417K, and with 20% down, then the fees are potentially a good thing. If not, they are additional profit for your loan source.
To try to restate concisely, if as a result of those two fees, you are receiving the same rate a person who had a loan under 417K, and with 20% down, then the fees are potentially a good thing. If not, they are additional profit for your loan source.
- Brian Goetz, "bri_gets"
- Contributions:295
That is totally normal, don't worry about it.
Loans over $417,000 are high balance conforming and come with either a higher rate or higher fees. Less than 20% is the same thing.
Just like Mr. Yonce said, they are product pricing adjustments.
Loans over $417,000 are high balance conforming and come with either a higher rate or higher fees. Less than 20% is the same thing.
Just like Mr. Yonce said, they are product pricing adjustments.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
As others have mentioned, really does depend on the rate you are being offered and your credit score. Happy to provide a second opinion
- Montgomery Mortgage
- Contributions:30
You can request your lender to provide a rate quote with no points. Most likely the rate would be higher.
- senmmail
- Contributions:33
Why not put the 0.5 point as down payment and bring the loan amount lower than 417K?
465000 - 10% down = 418500 - 2092.5 (0.5 point) = 416407.5
465000 - 10% down = 418500 - 2092.5 (0.5 point) = 416407.5
- Clay Branch, "Georgia Loans"
- Contributions:7836
It looks like their loan amount is $465K, not the purchase price.
- senmmail
- Contributions:33
Oh, my bad. Thanks Clay.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
That is one way to do it. Being that close to the 417K figure complicates the decision slightly. You would be better off to do it the way you suggest, if you have the funds. If you don't have the funds, and were trying to get the Seller to pay some costs, then the .5% adjustment could be paid from the Sellers contributions, rather than you having to produce the funds.
You could also just negotiate a slightly better price and accomplish the same result. If the loan source is being honest, and not trying to pad their profit, they don't care where the .5% comes from, as long as it doesn't come from somewhere that ruins your qualified status, or from somewhere that is not allowed, like a Seller rebate or some overly complicated arrangement. The Lender would prefer that you to simply negotiate the lower price, and exercise the KISS concept wherever applicable.
From the loan source perspective, when people come in and say they want to put 10% down, they usually don't mean 10%, or 11%, whichever works best. More often than not, they are really wanting to know how they can do it with 9%, or 10%, whichever works.
You could also just negotiate a slightly better price and accomplish the same result. If the loan source is being honest, and not trying to pad their profit, they don't care where the .5% comes from, as long as it doesn't come from somewhere that ruins your qualified status, or from somewhere that is not allowed, like a Seller rebate or some overly complicated arrangement. The Lender would prefer that you to simply negotiate the lower price, and exercise the KISS concept wherever applicable.
From the loan source perspective, when people come in and say they want to put 10% down, they usually don't mean 10%, or 11%, whichever works best. More often than not, they are really wanting to know how they can do it with 9%, or 10%, whichever works.
Mortgage processing charges
First time buyer and need some advice.
I got a GFE from a bank on a loan which is around 465K and I am only putting 10% down. They are charging me 1/2 point fee for loan above 417K and 1/2 point for not putting 20% down.
Is this common in this market? Also, what is the best way to shop for Mortgage.
Thank you,
MK
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