Financing in Canyon Country>Question Details

Jk7117, Other/Just Looking in Canyon Country, CA

Is 1.5% broker fee to high too pay for a 330000 refi on top of a refi that we did in less 2 yrs from the same broker?

Asked by Jk7117, Canyon Country, CA Tue Aug 24, 2010

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Doing business today cost more and takes more time. As with most everything, you can always find something for less. Usually, you get what you pay for.

The broker did good work last time for you or you wouldn't be going back. Two years ago lenders were going out of business left and right. It's gotten better as far as stability of knowing were, as a LO, you will place a loan. But, It's the LO's ability to present a quality loan, that counts the most today. Do you really want to take a chance with someone else? .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Aug 24, 2010
If its an FHA refinance its not out line in terms of a broker fee since that is the only government backed home loan in the United States and the investors pay higher margins to a mortgage broker as opposed to a Conventional loan. However, if its a Conventional loan that fee appears to be higher than the norm.
0 votes Thank Flag Link Tue Aug 24, 2010
If that 1.5% or $4950 is solely the broker compensation, then it's slightly above average of the normal 1 point expected at that loan amount. You could easily find a flat fee broker that will charge you half that. I would certainly shop around if I were you and check out current rates, they dipped again today.
Web Reference: http://NewRates.Info
0 votes Thank Flag Link Tue Aug 24, 2010
Hi Jk7117,

I agree with Ted on several levels. There are many variables we do not know in regards to your loan that can have a negative effect on your "pricing" or final rate, so I don't see how anyone can come up with an absolute "yes, that's too high" without analyzing the full story. Did you know that there are over 20 different variables that are taken into consideration to determine your rate?... such as:

* are you refi'ing your home, 2nd home or investment property?
* if it's an investment property, is it a 1, 2, 3, or 4 unit property?
* are you refi'ing a condo or single family residence?
* are you receiving any cash when you refi or is this strictly to lower your rate?
* what is the appraised value of your home verses your new loan amount?
* are you paying your own taxes & insurance or are you including it in your monthly payment to the bank?
* what is your credit score?
* do you have more than 5 financed properties?
* and finally, what is your rate & what day did you lock or were you quoted this rate?
* sometimes banks will add an additional layer of pricing (translation: higher cost to the borrower) if your debt-to-income ratio (DTI) is over certain thresholds.

These are just some of the variables. I can email you the entire list - let me know. Please feel free to contact me directly if I can help you with any questions you may want a second opinion on.

Good luck with your refi & all the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
NMLS ID 263779
480-422-5095 direct
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Tue Aug 24, 2010
I am going to kindly disagree with Fred as there are some variables that need consideration. Your post hasn't said much other than the loan amount and the broker fee. I am just being Switzerland. It can go either way.
0 votes Thank Flag Link Tue Aug 24, 2010
No, it's not too high as long as he's giving you the lowest rate. Mortgage brokers are contract workers which means their services cost more than services of a salaried employee because of the uncertainty of their income. It's a perfectly normal fee for a refinance.

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
800-801-6080
eo@oceanhomesrealty.com
skype: napleshomes
http://www.andrewollick.com/realestateblog
Get Pre-Approved: http://www.faithhomeloans.com/express.html
0 votes Thank Flag Link Tue Aug 24, 2010
JK,

It all depends on what the rate is. If it is a below par rate, then you are likely paying the discount. If not, then it may be high but then again, is the 1.50% paying the origination and the bank fees? If so, then it is in line. If not, then it may be too high. The best thing you can do is contact another lender and see what they offer you. If you'd like, you can contact me and I will gladly price it out for you (Keep in mind, I do not do loans in California) but can definitely give you an idea what you should be looking at.

If you'd like, call me at 480.344.3671.
0 votes Thank Flag Link Tue Aug 24, 2010
Sounds high.

Why are you paying fees anyway? Get a slightly higher rate and have the lender pay them. Save your cash!

My margin for this would be .75

Fred Glick
Web Reference: http://fglick.com
0 votes Thank Flag Link Tue Aug 24, 2010
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