Home Buying in Atlanta>Question Details

John, Home Buyer in Atlanta, GA

Is this origination fee too high? Also, can someone please explain the purpose of the credit? How much is the broker really making in this scenario?

Asked by John, Atlanta, GA Sun Aug 19, 2012

From Section A on the GFE:
1. Origination Charge $4115
2. Credit or charge (points) for the specific interest rate chosen: $-2820
Adjusted Origination Charges: $1295

From the Fee Worksheet, the Origination Charge of $4115 is made up of 1.5% origination fee ($2775) Processing ($500) Underwriting ($795). Under that, it then shows the credit of 1.5% ($2775).

Other info:
This is a refinance.
15-year Conventional Loan @ 2.875% (0 points)
Loan amount is $185,000
Appraised value is $265,000
70/30 Loan to value
Excellent credit score (800 )

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Answers

2
The origination fee is not high. The broker is in fact helping you by giving you back the credit (money ) to lower your closing cost. Very clean and clear numbers, good luck!
0 votes Thank Flag Link Thu Aug 23, 2012
Thank you both Brian and Andrea for your replies!
Flag Fri Aug 24, 2012
Without seeing the entire worksheet is is difficult to tell, but based solely from your description, it seems like this particular lender is not actually charging you the 1.5% origination fee, but instead just showing you what the cost would normally be, then crediting it back to you. Sounds like a loan with no origination fee! Congratulations!
0 votes Thank Flag Link Sun Aug 19, 2012
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