What is a reasonable loan origination fee? I have an estimate from a mortgage broker of .75% of the value of
the loan which is $400K (Fee is $3,000). Because of my really high credit score and my large down payment (42%) it was easy to get it approved. Slam dunk. Other fees are appraisal ($415), Processing (275), underwriting (325), courier/wire fees (80), recording fees (100), settlement/closing $684 Total fees are $5400
Are these fees competitive? He says he will beat anyone's fees but I really don't want to shop unless there is a need to do so. The note rate on a 30 year fixed is 4.25%
From a fee perspective it is not horrible expense by any stretch of the imagination. BUT, that rate is AWESOME - nobody is really offering that right now without paying a lot of discount points. I would assume that he is using some of those fees to pay down your rate. I would highly advise you to get a lock-in agreement NOW. You should protect that rate and make sure that your fees will not change.
If you go to lock that loan and you find out that your rate/fees are much different then I would walk from him because my bet would be that he lied to you about what he could get you simply to get your business.
If you lock and get a fee sheet with everything verified, then yu have a very good loan.
Good Luck
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
Eldo,
That sounds like a really solid deal to me. All of the costs are in line and that's a great rate. Usually loan origination is 1% of the loan amount, so you are looking pretty good! Great credit and the large downpayment make all the difference.
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