I don't charge an origination fee. and i do not think any origination fee is reasonable, since most brokers /bankers get paid on the back end of the deal from the lender by charging you a higher rate than the actual -0- point or "par" rate.

If you are "buying down " the rate, you will PAY POINTS to get a rate lower than the "par" rate.

Just because it "standard" practice in some states to charge an origination fee, does not make it right or reasonable.

demand an origination agreement and a good faith estimate, along with a truth in lending statement
and those documents will tell you what you are actually being charged. Check the APR on the truth in lending statement.
If it is not almost exactly the interest rate shown on the loan, your getting charged fees over and above the rate you agreed to in the first place.

As long as you have a clear picture of what you are being charged, you can make the choice to move forward or not..

.5% off as in higher... & here is a better link :) Good Luck!

Much more common origination fee is 1%. ..everything else you have appears to be market rates. However, I'm not a lender, ...this opinion is just based off of what I've seen for my clients.

Hi Eldo - determining reasonable fees is pretty much impossible without an apples to apples comparison. Apples to apples means getting Good Faith Estimates from two or more lenders using the same loan program on the same day. The reason for this is that fees and rates can be both be adjusted by the loan officer so you can't evaluate one without evaluating both at the same time. Also, rates change, at least slightly, daily so to be fair to both loan officers you need their quotes on the same day.

The alternative is to decide how great your level of trust is in this person. Did they come as a referral? If so, how satisfied was the person that referred them? Why? If not a referral, you're playing a dangerous game in hoping they are reputable, reasonable and well priced.

Feel free to contact me if you'd like to discuss your situation further. Perhaps the best solution would be to move:)

Dan

At 4.25% are you paying discount points? This is about a half point off of Friday's pricing, rates change daily sometimes even a few times in a day. If you go for it get a copy of the lock confirmation. Otherwise the fees sound reasonable. If you are including insurance and taxes in your payments they will collect those upfront two plus 2 months reserves, also the prepaid interest up to 30 days regardless.