John B, 3% paid by lender does not mean Claire would pay 4% closing cost. The 3% from the lender would come as a rate increase. That would be 1% closing cost shown here plus any thing else not mentioned.

So you will need to pay 4% closing costs? NO way.

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.

Doing good Ryan, I have actually gotten more business by trying not to take away business, if that makes any sense to you. Go figure, no sales pitch = sales

David,

Hopefully Trulia will send him a message and explain to him how questions should be answered. How are things on the West coast David? Its nice to see some Floridians sticking it out!! Best of luck to you in 2009!

Ryan

Marty is no here to answer questions, I have reported his answers about 20 times.

Marty,

Encouraging people to immediately check with other lenders does not answer their questions. Claire needs clarification, not another mortgage broker to sell her on a new loan. The big problem in this industry is borrowers lack of loyalty and commitment to their loan officer. WE should not be encouraging individuals to cut and run to another everytime they need answers.

Just my thought

Ryan

Claire,

If the broker put the 3% in the 800 section of the GFE as YSP or lender compensation he is just ranging the percentage. I highly doubt he is making 3% in Yioeld Spread from the lender unless your rate is 6%. What is the rate they quoted you? Did you lock in? Rates went up a .25% today alone.

If your still unclear on what your recieving please give me a call

Ryan
954-394-9005

I wll assume that it says up to 3% paid by lender, What rate is it?
The higher the rate the more they are getting paid from the lender.
Most lenders pay up to 3% and no more.


Is this fee too much or is this customary? It is to much if that is what the actually charge.

It could be they increased the purchase price by 3%.
This is called a sellers concession to help you finance your closing costs.
Where is it showing on the GFE?
Feel free to contact me I will discuss with you in detail

Good Luck
David Nezri
GFI Mortgage Bankers, Inc
845-323-0466

ask if this is a yield spread premium.... lender pays broker a %% in exchange for you paying a higher interest rate over the term of the loan. It will show up on your GFE and then the HUD1 as POC (paid outside closing) and not change the net proceeds at the closing table. It will change your monthly payment....this should be disclosed to you if it wasn't.

Claire,
The 1% origination fee is pretty standard. I think you are confusing the 3% as payment to the broker. It is most likely a a sellers assist. If it is a 3% sellers assist, it is money to help the buyer afford closing costs. It is part of the price negotiating process. If it is actually 3% paid to the Broker from a Lender, the buyer is definitely being overcharged.
I don't have the GFE to be able to tell, but if you would like to contact me, I would be happy to look at it for you.
The very best of luck to you!

Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com

Claire,

I might be inclined to assume that the lender mislabeled or was vague about a seller paid closing costs credit that you should receive from the seller. I would definitely call him/her on it and ask what the 3% is for - if my hunch is right this money comes back to you from the seller.

If this money does go to the bank for something this fee is excessive and you should find another mortgage broker - the trust is gone with this one.

Feel free to post back with his/her response so that us agents/brokers and can help you weigh out their answer.

Cameron Piper

That is pretty excessive in terms of fees. I would ask your mortgage broker why he/she is charging you that much. Is it for an FHA loan?